Oil property sale boosts Barnwell’s earnings

Barnwell Industries Inc. received a big boost from the sale of the company’s principal oil property in Alberta and posted a $679,000 profit in its fiscal second quarter.

The Honolulu-based company, which conducts oil and natural gas exploration in Canada, develops real estate property on Hawaii island and has statewide water drilling operations, said it had a $2.25 million net gain before taxes on the oil property sale. However, Barnwell said that about 50 percent of the proceeds was transmitted by the buyer to the Canadian tax authorities as taxes withheld on the sale.

“This sale has provided (Barnwell) additional liquidity and reduced Barnwell’s asset retirement obligations,” Barnwell CEO Alex Kinzler said Monday.

The net income for the period ended March 31 was a turnaround from the year-earlier period when Barnwell lost $615,000. Barnwell’s earnings per share last quarter was 8 cents versus a loss of 7 cents a share in the year-earlier quarter.

Barnwell’s revenue plunged nearly 35 percent to $1.98 million from $3.03 million in the same time frame a year ago.

Kinzler said Barnwell’s results were affected last quarter by a 42 percent decline in oil production as well as a 28 percent drop in natural gas production and a 23 percent drop in natural gas prices. Barnwell also saw a decrease in its contract drilling results.

Barnwell’s stock rose 1 cent to $1.83 Monday. The financial results were released before the market opened.