POSTED: 11:45 a.m. HST, Feb 9, 2011
Honolulu-based Barnwell Industries Inc. said several factors reduced its earnings in the final quarter of 2010, including lower natural gas prices from its drilling operations in Canada.
Barnwell’s net income fell to $1.09 million, or 13 cents per share, for the three-month period ending Dec. 31, down from $1.95 million, or 24 cents a share in the year-earlier period.
Besides lower revenue attributed to a 17 percent decline in natural gas prices, Barnwell’s earnings suffered in the recent quarter from the absence of a one-time $1.25 million tax benefit that was recorded in the year-earlier period, said Morton Kinzler, Barnwell chairman and chief executive officer.
Additionally, Barnwell reported higher operating costs due to repairs and maintenance at its main drilling site in Alberta, Canada.
The company said a development partnership in which it owns a 77.6 percent stake, received $2.66 million in the recent quarter from the last of 10 scheduled option payments relating to the development rights within the Hualalai Resort at Kaupulehu in North Kona. Barnwell also received $600,000 from sales payments.
Barnwell’s shares closed down 27 cents, or 3.6 percent, at $7.19 on the American Stock Exchange.