Barnwell Industries, Inc. Reports Earnings for Its First Quarter Ended December 31, 2020

HONOLULU, Feb. 10, 2021 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) today reported net earnings of $584,000, $0.07 per share, for the three months ended December 31, 2020, as compared to a net loss of $414,000, $0.05 per share, for the three months ended December 31, 2019.

Mr. Alexander C. Kinzler, Chief Executive Officer of Barnwell, commented, “We are pleased to report net earnings for the quarter ended December 31, 2020 as compared to last year’s net loss for the three months ended December 31, 2019, primarily due to a $1,097,000 improvement in equity in earnings of affiliates as compared to the quarter ended December 31, 2019.

“This increase in the affiliates’ earnings reflects improved land sales at Kaupulehu, North Kona, Hawaii, with the Company having received $1,712,000 in net cash distributions in our first quarter, $459,000 of which was a preferred return which contributed to our net earnings, improving our cash balance and liquidity. Contract drilling segment operating profits grew slightly and while oil and natural gas operating margins declined this was largely due to a $630,000 non-cash impairment of our oil and natural gas properties due to lower 12-month historical rolling average oil and natural gas prices this year as compared to the preceding year, there was no such oil and natural gas impairment in the first quarter last year. Our oil and natural gas segment had production increases for all products in the current quarter as compared to last year’s quarter and the first well we drilled at the Twining property a year ago is currently producing over 120 barrels of oil a day.

“We are also pleased that general and administrative expenses decreased $311,000, 21% in the current quarter as compared to last year’s quarter. The Company also recently entered into a cooperation and support agreement with MRMP-Managers LLC, the Ned L. Sherwood Revocable Trust, Bradley M. Tirpak and Ned L. Sherwood, which we believe will be beneficial in our efforts to reduce general and administrative expenses for the remainder of fiscal 2021 as compared to the same periods in fiscal 2020.

“Barnwell ended the quarter with $5,370,000 in working capital, which includes $5,334,000 in cash and cash equivalents. Also, in January 2021, we received a net cash distribution in the amount of $199,000 from the Kukio Resort Land Development Partnerships. Financial results of this distribution will be reflected in Barnwell's quarter ending March 31, 2021.”