The main revenue sources were the Mears Creek Hydro Plant, the Kyuquot Utility and the Engineering Division. Revenue for the first half of fiscal 2009 was slightly higher at the Mears Plant and Engineering Division and slightly lower at the Kyuquot Utility as compared to that for the corresponding period in the year-ago period.
Net income before other items for the first half of fiscal 2009 increased to CAD239,231 from CAD73,957 in the year-ago period.
The 2.8 megawatt (MW) Cypress Creek Hydro Plant was considered by the company to be available for operations at December 31, 2008. Previously, Synex has applied for an electricity purchase agreement under the BC Hydro Standing Offer Program (the EPA) and on January 28, 2008, the company announced that the Power Division had executed the EPA, but that the EPA still needs acceptance of the British Columbia Utilities Commission. The company anticipates that the Cypress Creek Hydro plant will be the first applicant under the Standing Offer Program to reach commercial operation. On October 22, 2007, Synex announced that its power division has signed a loan agreement with the Canadian Western Bank for the Cypress Creek Plant. The amount advanced under the loan as at December 31, 2008 was CAD2,950,000 with a maximum lending of CAD3,529,945 available.
During the second quarter of fiscal 2009, Synex received a second payment of CAD1 million from the Ka:yu:kth/Che:k:tles7eth First Nation (KCFN). CAD1 million has been allocated as CAD850,000 being a contribution towards the capital cost of the Kyuquot powerline and CAD150,000 being revenue to the company. KCFN has decided to advancing a further CAD1 million over 2009 (the third payment). The KCFN receive a reduction in electricity rates for the capital contributions.
