Synthesis Energy Systems, Inc. (NASDAQ:SYMX) Q2 2015 Earnings Conference Call - Final Transcript
Feb 12, 2015 • 04:15 pm ET
Good day, and welcome to the Synthesis Energy Systems, Inc. Fiscal 2015 Second Quarter Financial Results Conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Susan Roush. Please go ahead.
Thank you. Good afternoon and thank you for joining Synthesis Energy Systems' conference call. Today, SES management will discuss financial results for the company's 2015 fiscal second quarter ended December 31, 2014, and will provide an update on corporate developments. Following management's prepared remarks, we will open the line for questions.
Please refer to the company's Annual Report on Form 10-K filed on September 12, 2014 as amended on October 28, 2014, and its subsequent SEC filings for a further discussion on risk factors. The SES 10-K and other SEC filings are available on the Securities and Exchange Commission's website at sec.gov or on the company's website at synthesisenergy.com.
And now, I'll turn the call over to SES' President and Chief Executive Officer, Robert Rigdon.
Robert Wayne Rigdon
Good afternoon, everyone. Welcome to our fiscal 2015 second quarter financial results call. I'm joining the call today from our US headquarters in Houston. Also, with me here is our CFO, Roger Ondreko; our Chief Operating Officer, Charlie Costenbader, is joining us from our Shanghai office. This past quarter, we have made good progress deploying our technology even in the face of some short term challenges.
As we previously announced, the Innovative Coal Chemical Design Institute, which is a wholly owned subsidiary of our partner in China, Suzhou Tianwo Science and Technology or TST, has been awarded three projects from China Aluminum Company, also known as CHALCO, valued at $105 million, which will use SES technology and equipment supplied from our TSEC joint venture of approximately 25% of the order value.
This is a big win for us and is clear evidence of the traction we are getting in our business. We believe this award opens up a potentially large emerging market segment in China for new plants and retrofit plants that can produce syngas as a replacement fuel for natural gas in large industrial complexes. And wins like these build momentum. Thanks to this award, TSEC is now advancing on five other similar order prospects, totaling over RMB2 billion in installed project cost. Also in December, together with TSEC, we signed a framework agreement with Dengfeng Power Group, which commenced the parties to a series of engineering and evaluation steps for a 160 MW distributed power generation plant, with a total installed cost expected to be just under RMB2 billion.
Dengfeng Power Chairman Liu is to commended for being forward-looking and leading the way for cleaner coal distributed power in China. This undertaking is intended to lead to a very important first order in China for the combined SES and GE technologies power plant model, and potentially unlocks the China market for a cleaner coal distributed power product, specifically for China and an exciting opportunity for us. Now, this past quarter