Synodon Inc. Expects To Build On A Successful 2013

Energy is the lifeblood of our modern economy but the way in which it is delivered to our homes and gas stations isn’t always popular. The mainstream media in North America has given a voice to the vocal minority who oppose any type of pipeline expansion yet at same time have also shone a spotlight on the dangers of transporting oil by rail, as was evident in last year’s accident at Lac-Megantic, Quebec.

Pipelines, then, would appear to be the better alternative although not without its own challenges. More than 110,000 barrels were spilled in 544 pipeline incidents in 2013, compared with 45,954 barrels spilled throughout 571 incidents in 2012, according to the U.S. Department of Transportation (Source: thehydrocarbon.com).

Helping make pipelines safer are companies such as Synodon Inc. SYD, which employs aerial monitoring (helicopters equipped with sensors and cameras) to provide crucial pipeline integrity data. The company’s real Sens technology uses infrared cameras to detect hydrocarbons and determine whether there is a leak. Gases and vapours have their own thumbprints from the light the molecules absorb in the atmosphere, and the realSens instrument detects sunlight reflected from the ground and captures the data.

Synodon’s highlights for 2013 included new customer contracts with Access Midstream (Texas), ATMOS Energy (Texas), Apache Canada, as well as re-signing Enbridge Energy Partners (Texas) to a new contract in addition to a new three-year contract with expanded services and mileage with Nova Chemicals.

“We are noticing a change from last year in that the market is giving us a lot more credibility,” says Synodon President & CEO Adrian Banica, referring to the fact that the company no longer has an uphill battle to show clients andpotential clients that itcan achieve what it has set out to accomplish.

“Also for the first time ever, during the last fiscal year, we have received ‘cold calls’ from potential clients wanting to contract our services, which although hasn’t resulted in huge revenue changes yet it is significant from a company maturity and service maturity standpoint in the market, which sets the company up much better for the coming year,” he contends.

In an interview with SmallCapPower.com, Mr. Banica explains that this greater credibility is translating into discussions with existing clients to service a “significantly larger” percentage of their networks during 2014. An example of this can be found in the company’s January 16, 2014, announcement of an expanded follow-order with Access Midstream for Synodon’s realSens pipeline integrity management services that covers quarterly survey flights over about 4,000 km of the producer's Barnett Shale Region network during the next year. This follows a successful initial contract with Access Midstream in the last quarter of fiscal 2013.

In addition to the company’s core service of leak detection, 2013 saw Synodon expanded its offerings to include value-add services that its customers require but had to purchase from somewhere else. This includes analyzing Synodon’s visible images for threats to the pipelines, erosion around rivers, and vegetation on the pipeline, all of which helps with its customer retention initiatives.

“These value-add services that we are selling will probably have the potential this year to double our gross profit margins,” Mr. Banica explains.

In a year-end email to his stakeholders, Mr. Banica wrote that “our order book for next year (2014) is the largest it has ever been in our history and with what we have on the table it is not inconceivable that we could double or triple our revenue.” He added, though, that these are projections which have risk attached.

To learn more about Synodon Inc., you can view their initiation research report, research bulletins, analyst commentaries and CEO video interview on their SmallCapPower.com Investor Hub: HERE .

About Synodon:

Synodon Inc. SYDSYXXF is a technology company which has developed an advanced airborne remote gas sensing system called realSens™, based on technologies developed under the Canadian Space Program and by Synodon scientists. The company currently provides advanced airborne pipeline integrity management services to the oil and gas sector through a suite of services including natural gas and liquid hydrocarbon leak detection, pipeline threat assessments, and waterway crossings analysis among others.

About Ubika Research

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