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

HONOLULU, Dec. 11, 2020 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) today reported a net loss of $4,756,000, $0.57 per share, for the year ended September 30, 2020, as compared to a net loss of $12,414,000, $1.50 per share, for the year ended September 30, 2019. For the quarter ended September 30, 2020, Barnwell reported net earnings of $628,000, $0.08 per share, as compared to a net loss of $4,324,000, $0.52 per share, for the quarter ended September 30, 2019.

Mr. Alexander Kinzler, Chief Executive Officer of Barnwell, commented, “We are pleased to report a profit in our fourth quarter ended September 30, 2020, which was brought about by positive operating margins in each of our oil and natural gas, contract drilling and land investment segments. In addition, general and administrative expenses decreased $118,000 as compared to the fourth quarter of fiscal 2019.

“The improvement to net earnings for the three months ended September 30, 2020 as compared to last year’s net loss for the three months ended September 30, 2019 was primarily due to a $3,297,000 non-cash impairment of our oil and natural gas properties in the prior year period due to lower oil prices in the fourth quarter of 2019 than in the fourth quarter of 2018; there was no such impairment in the current year period, therefore, our oil and natural gas segment generated an operating profit of $257,000. Additionally, operating profit at the contract drilling segment increased $436,000 due to increased drilling activity. Equity in income from affiliates increased $262,000 in the fourth quarter of 2020 as compared to the prior year due to the sale of two lots by the Kukio Resort Land Development Partnerships; we have an indirect 19.6% non-controlling ownership interest in these partnerships. These lot sales by the Kukio Resort Land Development Partnerships resulted in $325,000 in revenues to Barnwell and enabled these partnerships to make $360,000 in cash distributions to the Company in the fourth quarter; $197,000 of which was a preferred return which contributed to our net earnings.

“We are pleased to note that in November 2020 the Kukio Resort Land Development Partnerships sold an additional lot and made additional cash distributions to the Company in our first quarter of fiscal 2021 of $1,034,000; $459,000 of which was a preferred return which will contribute to our fiscal 2021’s first quarter results.