Barnwell Industries, Inc. Reports Results for the Third Quarter Ended June 30, 2002.
Business Editors
HONOLULU--(BUSINESS WIRE)--Aug. 13, 2002
Barnwell Industries, Inc., (ASE-BRN) today reported net losses of $220,000 ($0.17 per share) and $280,000 ($0.21 per share) for the three and nine months ended June 30, 2002, respectively, as compared to net earnings of $740,000 ($0.55 per share - diluted) and net earnings of $3,660,000 ($2.68 per share - diluted) for the three and nine months ended June 30, 2001, respectively.
Mr. Morton H. Kinzler, Chairman and Chief Executive Officer of Barnwell, commented, "Net earnings decreased from the prior year's periods due principally to $1,310,000 (28%) and $8,150,000 (49%) declines in oil and natural gas revenues as compared to last year's third quarter and nine months, respectively, which were due primarily to significant decreases in petroleum prices. Natural gas prices decreased 36% as compared to last year's third quarter, and natural gas, natural gas liquids and oil prices decreased 55%, 51% and 24%, respectively, as compared to last year's nine months ended June 30. Additionally, the three and nine months ended June 30, 2001 included a $300,000 deferred income tax benefit due to a reduction in the Province of Alberta's corporate tax rate; there was no such tax benefit in the current periods.
"The nine months ended June 30, 2002 reflects a sale of land development rights by Kaupulehu Developments (a 77.6% owned general partnership) in the first quarter. The Company did not recognize any operating profit on this transaction as it accounts for development rights under option under the cost recovery method where no operating profit is recognized until cash received exceeds costs and estimated future costs associated with the development rights. However, net earnings for the nine months were increased by $376,000 in deferred tax benefits related to this transaction. Kaupulehu Developments is currently having discussions with third parties about the development of its leasehold land and continues to make progress negotiating a revised development agreement and residential fee purchase prices with the lessor.
"The Company invested $753,000 during the three months ended June 30, 2002 and $3,335,000 during the first nine months of this year in oil and gas exploration and development, participating in the drilling of nine gross wells, or 3.60 net wells, of which seven gross wells, or 2.70 net wells, are successful. Seven of the nine wells the Company participated in were on prospects developed by the Company. The Company's cash and available credit were $1,781,000 and $1,500,000, respectively, at June 30, 2002."
