Energy prices help Barnwell cut loss

A Hawaii company engaged in oil and natural gas production in Canada was able to ride higher energy prices to reduce a financial loss by $1 million in the first three months of this year.

Honolulu-based Barnwell Industries Inc. announced Wednesday that it lost $615,000 in the period representing its fiscal second quarter, compared with a $1.6 million loss in the same quarter last year.

Company CEO Alexander Kinzler said the improvement was due to strong natural gas and oil prices, which increased by 141 percent and 96 percent, respectively, during the recent quarter. Kinzler, who replaced his father Morton as head of the company on Dec. 31, also said Barnwell restarted several wells that contributed to a 14 percent oil output increase during the period.

Revenue in the recent quarter was $3 million, up from $1.6 million a year earlier.

Barnwell, which also owns real estate in Hawaii and has contract drilling operations, said its next quarterly report will include a $540,000 gain on a New York office it sold for $2.4 million in May.

Shares of Barnwell stock closed at $1.94 on Wednesday after the earnings announcement, down from $2.04 on Tuesday. Over the last 52 weeks, Barnwell shares have closed between a low of $1.35 on June 24 and a high of $2.47 on Feb. 27.