TSX : SXI
VANCOUVER,
Sept. 17, 2012 /CNW/ - Revenue from
energy sales and consulting for the fiscal year ended June 30, 2012 increased by 41% to $5,281,228 from $3,728,474 for fiscal 2011. The revenue
increase is primarily due to an increase in consulting services,
the start of commercial operations at the Barr Creek Plant on
February 2, 2012 and increases in
electricity sales from each of the Mears Plant, Cypress Plant and
the Kyuquot Utility.
Net income to shareholders of the Company for
fiscal 2012 was $430,034 as compared
to net income of $48,904 for fiscal
2011. Income per share for fiscal 2012 was $0.02 as compared to income per share of
$0.00 in fiscal 2011.
The Company made a dividend payment in late
June 2012 to shareholders of record
on June 15, 2012. The dividend
payment was in the amount of $0.01
per share. A regular dividend is expected to be paid annually
in June of each year. The introduction of the dividend
demonstrates confidence in the ability of the existing operating
assets to consistently generate positive cash flow.
On February 2,
2012, the 4.4 MW Barr Creek Hydro Plant ("Barr Creek Plant")
commenced commercial operation under the 40 year electricity
purchase agreement with BC Hydro. During the period from
February 2, 2012 to June 30, 2012, the average generation of the Barr
Creek Plant was about 2.1MW which was equivalent to the forecast
generation. The Barr Creek Plant is owned by the Barr Creek
Limited Partnership ("BCLP") and its general partner, Barr Creek
Hydro Ltd. ("BCHL"). BCLP and BCHL are each owned 80% by the
Company and 20% by the Ehattesaht First Nation. The asset
value of the Barr Creek Plant at June 30,
2012 was $12.5 million and the
principal amount of debt at June 30,
2012 was $9.1 million.
In March 2012, the
Company received a payment of $625,871 from the Ka:'yu:'k't'h'/Che:k:tles7et'h'
First Nation as the final contribution in aid of construction with
respect to the Kyuquot
powerline. The Company applied the proceeds to fully repay
the revolving $500,000 credit line of
the Power Division as well as for general corporate purposes.
At June 30, 2012, the Company had
loan agreements with Canadian Western Bank with total indebtedness
of $19.1 million as compared to
$11.5 million at June 30, 2011. During Fiscal 2012, the
Canadian Western Bank advanced $8.4
million for construction of the Barr Creek Plant.
The Company is a successful hydroelectric
developer and consultant in British
Columbia. The Company wholly owns or has proportionate
interests in a total of 12 MW of operating facilities. In
addition, the Company has applications for water licences and land
tenure on over 55 potential hydroelectric sites which are either in
various stages of development or intended for disposition.
Mostly, the water licence applications are for projects with
individual capacities of less than 10 MW. BC Hydro under the
current Standing Offer Program accepts applications for electricity
purchase agreements for up to forty years for projects with a
maximum size of 15 MW and for which BC Hydro has a stated goal of
acquiring 500 GWh per year.
"signed"
______________________________________
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.