Honolulu-based Barnwell Industries Inc. said Friday a decline in the book value of its oil and natural gas properties in Canada was the main reason the company’s loss widened in the final quarter of 2012 compared with the same period a year earlier.
Barnwell lost $2.7 million, or 33 cents a share, in its first fiscal quarter, compared with a loss of $282,000, or 3 cents a share, in the year-ago quarter.
The loss in the most recent quarter included a $2.3 million write-down in the value of the oil and natural gas properties, according to Morton Kinzler, Barnwell’s chairman and chief executive officer. There was no such write-down in the year-earlier quarter.
"This reduction in carrying value had no effect on the company’s liquidity or compliance with our credit agreements," Kinzler said.
Other factors contributing to Barnwell’s loss were declines in the price of natural gas, oil and natural gas liquids, which fell by 12 percent, 15 percent and 23 percent, respectively, the company reported.
"Due to these declines in product prices, the company has decreased its investment in natural gas properties significantly, focusing on oil properties," Kinzler said.
Barnwell said it invested $1.87 million in oil and gas exploration and development in the latest quarter.
The company also said it sold a lot in the Kaupulehu Development on the Kona Coast this month that it will report as a $300,000 gain in its second fiscal quarter results.
Barnwell’s shares fell 9 cents, or 2.6 percent, Friday on the New York Stock Exchange.
