TSE : SXI
VANCOUVER, Sept. 16 /CNW/ - Revenue grew by 18% in fiscal 2008 over
fiscal 2007, in a year of cooler than normal winter weather which reduced
electricity generation and increased construction costs. Fiscal 2008 marked
the ninth consecutive year of positive earnings for the Company. The growth in
revenue is a result of increased revenue from the Engineering Division and
increased electricity sales from the Kyuquot Utility offset by decreased sales
from the Mears Creek Hydro Plant (the "Mears Plant"). Increased revenue was
anticipated as there continues to be significant demand for hydroelectric
engineering and environmental services, and customers of the Kyuquot Utility
continue to both connect and add electrical load. The decrease in sales from
the Mears Plant was due to limited runoff during December 2007 to April 2008
when compared to historical values. Revenue for fiscal 2009 should continue to
grow as the Cypress Creek Hydro Project, which was mainly constructed in
fiscal 2008, should commence generation in the fall of 2008.
Revenue increased to $2,708,310 in fiscal 2008 from $2,304,375 in fiscal
2007 while income before other items was $184,166 in fiscal 2008 as compared
to a loss of $34,517 in fiscal 2007. Net income decreased to $348,749 in
fiscal 2008 from $1,015,053 in fiscal 2007 primarily due to a reduction in
investment income of $962,146. Investment income is primarily from sales of
shares of NovaGold Resources Inc., which were acquired by the Company in
fiscal 2006. Earnings per share in fiscal 2008 were $0.01 per share as
compared to $0.04 earnings per share in fiscal 2007.
Construction of the 2.8 MW Cypress Creek Hydro Project (the "Cypress
Project") was substantially advanced during Fiscal 2008. As at June 30, 2008,
the Cypress Project was over 75% completed with commissioning expected in the
fall of 2008. The Company is expecting to secure an electricity purchase
agreement with BC Hydro under the Standing Offer Program which was announced
by BC Hydro on April 11, 2008. On October 22, 2007, the Company announced that
the Power Division had entered into a loan agreement with Canadian Western
Bank. The amount advanced under the loan at June 30, 2008 was $1,400,000 with
a maximum lending of $3,529,945.
During Fiscal 2008, the Company received $1 million from the
Ka:'yu:'k't'h'/Che:k:tles7et'h' First Nation (the "KCFN") as a payment in
respect of the Kyuquot powerline. The KCFN have entered into an agreement,
whereby the KCFN may advance the Company a further $2 million over the next
2 years in respect of the Kyuquot powerline in exchange for a reduction in
electricity rates. At least $1 million is anticipated to be received in Fiscal
2009, however there is no guarantee.
The Company is continuing to advance the proposed McKelvie Creek,
Barr Creek and Victoria Lake hydroelectric projects.
The Company owns and operates the 3.8 MW Mears Creek hydroelectric plant,
an electrical utility and has a 12.5% ownership of the 6.5 MW China Creek
hydroelectric plant, all located on Vancouver Island. Construction of the
2.8 MW Cypress Creek hydroelectric plant, located near the Mears Creek plant,
is well advanced and is expected to be commissioned in the fall of 2008.
Commencement of construction of both the McKelvie Creek and Barr Creek
projects is expected in fiscal 2009 with earliest completion in late fiscal
The provincial government in British Columbia has endorsed the
development by private industry of environmentally sound hydroelectric plants.
The Company has over 25 water license applications in various stages of
development, including those pending for review, for various projects located
on Vancouver Island and the Prince Rupert/Terrace area in British Columbia.
The Company is also pursuing other opportunities in respect of power
Synex International Inc. is a public company trading on the Toronto Stock
Exchange (TSX) with businesses involved with the development, ownership and
operation of electrical generation facilities, as well as the provision of
consulting engineering services in water resources, particularly for
hydroelectric and other power facilities.
Greg Sunell, President
This press release contains forward-looking statements that involve risks
and uncertainties. These statements reflect our current expectations and are
subject to change. They are subject to a number of risks and uncertainties
including, but not limited to, changes in economic conditions, risks
associated with the construction and operation of hydroelectric facilities and
changes in government policies.
For further information:
For further information: 400 - 1444 Alberni Street, Vancouver, BC, V6G
2Z4, Phone (604) 688-8271 Ext. 372, Fax (604) 688-1286, E-mail:
email@example.com, Web Site: www.synex.com