Barnwell Industries, Inc. Reports Year-End and Fourth Quarter Results

HONOLULU, Dec. 16, 2019 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) today reported a net loss of $12,414,000, $1.50 per share, for the year ended September 30, 2019, as compared to a net loss of $1,770,000, $0.21 per share, for the year ended September 30, 2018.  For the quarter ended September 30, 2019, Barnwell reported a net loss of $4,324,000, $0.52 per share, as compared to a net loss of $1,058,000, $0.13 per share, for the quarter ended September 30, 2018.

Mr. Alexander Kinzler, Chief Executive Officer of Barnwell, commented, “The increase in the loss for the year ended September 30, 2019 as compared to the year ended September 30, 2018 was primarily due to the following factors: a $5,710,000 non-cash impairment of our oil and gas properties during the current year due to lower commodity prices in 2019 as compared to 2018; a $2,255,000 gain recognized last year primarily from the sale of oil properties in the Red Earth area; a $1,443,000 decrease in land investment segment operating profit, before income taxes and non-controlling interests’ share of such profits, due to a decrease in sale proceeds received as compared to the prior year period and a $499,000 decrease in equity in income from affiliates as a result of decreased operating results of the Kukio Resort Land Development Partnerships.

“The loss for the three months ended September 30, 2019 as compared to last year’s loss for the three months ended September 30, 2018 was due to a $3,729,000 decrease in operating results in our oil and natural gas segment, due largely to a $3,297,000 non-cash impairment of its oil and gas properties during the three-month period due to lower oil prices in 2019 than 2018; there was no impairment in the same period in fiscal 2018.  Additionally, there was a $335,000 decrease in land investment operating profit, partially offset by a $442,000 increase in contract drilling operating results, and a $468,000 decrease in general and administrative expenses.  This decrease in fourth quarter general and administrative expenses reflects managements’ efforts, which are continuing, to reduce these costs.

“Barnwell had working capital of $3,936,000, including cash and cash equivalents of $4,613,000, at September 30, 2019.  In October 2019, we closed on the sale of assets in the Progress area of Alberta for cash proceeds of approximately $600,000, in order to help fund our drilling activity in fiscal 2020.