POSTED: 11:40 a.m. HST, May 9, 2012
Honolulu-based Barnwell Industries Inc. said its net loss widened in the January-through-March quarter from the same period a year earlier due to several factors, including a decline in the value of some of its real estate holdings on Hawaii island and lower natural gas prices from its energy operations in Canada.
The company lost $2.98 million, or 36 cents a share, in its second fiscal quarter. That compares with a loss off $1.46 million, or 18 cents a share, during the same three-month period a year ago.
The biggest factor in the loss was a $1.8 million reduction in the carrying value of two luxury homes in which Barnwell owns stake on the Kona Coast. The year-over-year comparison also was affected by a $1.3 million gain in drilling royalty credits a year ago that did not exist in the most recent quarter.
Additionally, Barnwell's bottom line was hit by a 48 percent decline in natural gas prices, according to a news release from the company.
Those declines were partially offset by a 16 percent increase in net oil production, a 6 percent rise in oil prices and a $1.45 million drop in stock appreciation rights expense, the company reported.