Barnwell Industries Inc.’s strong oil and natural gas operations continue to fuel large revenue gains.
The Honolulu- based company reported Thursday after the market closed that revenue nearly doubled in its fiscal fourth quarter to $8.4 million from $4.6 million in the year-earlier quarter, while revenue for the year ended Sept. 30 surged 57.6% to $28.5 million from $18.1 million.
Barnwell, whose primary revenue generator is oil and natural gas development, production, acquisition and sales in Alberta and Oklahoma, also makes money from its real estate development partnership on Hawaii island and statewide water drilling operations. In addition, the company said it expanded its oil and gas operations earlier this month with a $5.1 million investment in Texas into a Permian Basin drilling opportunity. Initial production is expected in the fiscal second quarter, which ends March 31.
CEO Alex Kinzler said the company’s oil and natural gas revenues, in particular, more than doubled in the fiscal year due to higher prices and production for all products. Prices of oil, natural gas and natural gas liquids increased 68%, 77% and 51%, respectively, from fiscal 2021, and the company’s production of oil, natural gas and natural gas liquids rose 24%, 39% and 100%, respectively, during that same time frame.
Barnwell’s net income, however, declined in both the quarter and fiscal year. The company swung to a loss of $143,000 in the fourth quarter, compared with a profit of $1.5 million in the year-earlier period when the company’s sale of a Honolulu office and oil property generated proceeds of $2.4 million.
The $740,000 decrease in earnings in fiscal 2022 compared with fiscal 2021 was primarily due to the company’s recognition of $4.5 million in gains in fiscal 2021 that did not occur in fiscal 2022. Those items included a $2.3 million gain from the termination of the company’s post-retirement medical plan, nearly $2 million in gains from the sales of assets and a $149,000 gain on the elimination of debt.
Barnwell’s land investment segment operating results decreased $532,000 due to the Kukio Resort Development Partnerships’ sale of six lots in fiscal 2022, compared with eight lot sales in the prior-year period. Due to these sales, Barnwell received $3 million in net cash distributions in fiscal 2022.
The company’s contract drilling operating results decreased $133,000 due to the completion of a significant drilling contract in the prior- year period.
Barnwell announced last week that it would pay a dividend of 1.5 cents a share Jan. 11 to shareholders of record as of this past Tuesday.
The company’s stock finished flat Thursday at $2.95.
