VANCOUVER, Nov. 10 /CNW/ - Net loss for the three months ended September 30, 2008 was $478,051 as compared to a net loss of $71,304 in the corresponding period in the previous year. A net loss in the first quarter is expected as the generation from hydro plants in the first quarter normally represents less than 10% of annual forecast generation.
Revenue for the three months ended September 30, 2009 decreased to $374,199 from $577,737 for the corresponding period in the previous year. Revenue decreased primarily due to reduced engineering assignments and drier than average conditions on Vancouver Island. While there was additional revenue from the new 2.8MW Cypress Creek hydroelectric plant (the "Cypress Plant"), all of the other operations including the 3.8MW Mears Creek hydroelectric plant (the "Mears Plant"), the Kyuquot Utility and the Engineering Division had lower year over year revenues.
The Cypress Plant was the first plant to reach commercial operation under an electricity purchase agreement pursuant to the BC Hydro Standing Offer Program. The Cypress Plant received approval from the BC Utilities Commission on July 30, 2009 and the Commercial Operation Date under the electricity purchase agreement was set as July 31, 2009.
On July 21, 2009, the Company announced that the Power Division had entered into an Amended and Restated Credit Agreement with the Canadian Western Bank (the "Agreement"). The Agreement provides for additional lending of $3,770,055, secured primarily by the Cypress Plant. As of September 30, 2009, a total of $1,000,000 had been advanced and $2,770,055 of additional lending remained available.
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. The 5MW McKelvie Creek hydroelectric plant (the "McKelvie Project") and the 4.4MW Barr Creek hydroelectric project (the "Barr Creek Project") are in advanced regulatory stages and construction is expected to commence on one or both of the projects in fiscal 2010. The McKelvie Project is expected to qualify for an electricity purchase agreement under the BC Hydro Standing Offer Program and the Barr Creek Project has an existing electricity purchase agreement under the BC Hydro 2006 RFP.
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.
SOURCE Synex International Inc.
For further information: For further information: Greg Sunell, President, 400 - 1444 Alberni Street, Vancouver, BC, V6G 2Z4, Phone (604) 688-8271 Ext. 372, Fax (604) 688-1286, E-mail: firstname.lastname@example.org, Web Site: www.synex.com