TSX : SXI
VANCOUVER, Feb. 7, 2012 /CNW/ - Synex International Inc. (the "Company") announces that for the six month period ended December 31, 2011, revenue from energy sales and consulting increased to $1,866,285 as compared to $1,390,817 in the corresponding period in fiscal 2011. This increase in revenue is due to an increase in consulting revenue as well as increases in electricity sales from each of the Mears Plant, the Cypress Plant and the Kyuquot Utility.
Net income for the six month period ended December 31, 2011, was $2,648 as compared to a net loss of $47,455 in the corresponding period in fiscal 2011. The significant improvement in operating results of the first half of fiscal 2012 as compared to fiscal 2011 fully offset the receipt in fiscal 2011 of $300,000 for an option with an unrelated third party regarding the purchase of some water licences and related rights of the Engineering Division (the "Option"). The Option expired unexercised at December 31, 2011. The Company has entered discussions with the unrelated third party regarding a new option.
During the first six months of fiscal 2012, the Barr Creek Limited Partnership ("BCLP") and its general partner Barr Creek Hydro Ltd. ("BCHL") continued to advance the Barr Creek Hydro Project (the "Barr Project"). The Company holds an 80% interest in BCLP and BCHL with the Ehattesaht Tribe holding the remaining 20%. As of December 31, 2011, construction of the Barr Project was over 90% complete. Subsequent to the end of the second quarter, on February 3, 2012, the Company announced that the Barr Project commenced delivering electricity commercially to BC Hydro and Power Authority.
During the spring of 2010, the Company was the highest bidder for the purchase of applications for water licences and land tenure of Hawkeye Energy Corporation (the "HEC assets") from the Receiver. During the Court process to approve the sale of the HEC assets to the Company, Hawkeye Power Corporation ("HPC") opposed the sale on the basis of an unregistered prior right to the assets. On November 21, 2011, a court decision declared that HPC did not have a prior right to the assets. On December 20, 2011, HPC filed a Notice of Appeal and Notice of Stay in regards to the court decision. The appeal process is advancing.
The Company commenced reporting financial results under IFRS as of the first quarter of fiscal 2012. The financial results under IFRS are not significantly different than the financial results would have been under GAAP, although there has been a minor reduction in assets of the Company due primarily to differences in amortization treatment between IFRS and GAAP.
Synex International Inc is an experienced run of river hydroelectric developer and consultant in British Columbia with over 15 professionals located in the Vancouver office. The Company wholly owns or has interests in 12 MW (net) of operating facilities and has applications for water licences and land tenure on over 70 potential hydroelectric sites which are in various stages of development.
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.
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