The company reported a loss of $506,000 or a penny per share in the second quarter ended June 30, compared with a profit of $2.7 million of five cents per share for the same period in 2006.
It also warned more losses are ahead.
“As a development stage entity, Synenco Energy expects it will mainly report net losses until project development activities are complete and operations commence,‘‘ the company said in a release Friday.
Synenco reported consolidated capital expenditures of $35.3 million for the second quarter, and with 60 per cent ownership of the Northern Lights Partnership its share totalled $21.9 million.
It said the capital costs included engineering activities, technology and piloting-related costs, personnel costs and work related to the upstream regulatory application.
Personnel costs for the quarter were $1.2 million compared with $1.1 million in the same quarter last year. Restructuring costs for the quarter totalled $2.1 million. There were no comparable costs in the same period last year.
Synenco said in May it would cut 46 positions, or approximately 30 per cent of its workforce as part of ongoing strategic review of its operations.
Earlier that same month, it announced it was holding off plans for its Northern Lights project to “assess options for a strategic repositioning‘‘ that could include a sale of the company.
The options included restructuring the Northern Lights downstream business or bringing in new partners to join China‘s Sinopec, which has taken a 40 per cent interest in the development.
Synenco has a 60 per cent interest and is the managing partner of the Northern Lights Partnership and operator of the Northern Lights oilsands project. It also holds a 100 per cent interest in the McClelland oilsands lease adjacent to Northern Lights project lands.
The Northern Lights project consists of an oil sands mining and bitumen extraction project to be established about 100 kilometres northeast of
PIN/Oilweek.Com
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