Barnwell Industries’
profit slides

By Russ Lynch
Star-Bulletin

Barnwell Industries Inc., a Honolulu-based company that explores and develops oil and gas resources in Canada and on the mainland, reported less than half the profit in the three months ended June 30 than it had in the equivalent quarter last year.

For the latest period, the third quarter of the company's fiscal year, Barnwell had a profit of $110,000, or 8 cents a share, compared with $280,000, or 21 cents a share in the 1996 third quarter. Revenues of $3.28 million were down 4.1 percent from $3.42 million in the year-earlier period.

The lower results had been expected as production decreased at some of the company's mature oil and gas properties, said Morton H. Kinzler, chairman and chief executive officer. Third-quarter production volumes were down 15 percent for oil, 13 percent for natural gas and 18 percent for natural gas liquids, he said.

"It is anticipated that production from new properties will come on line in the near future," Kinzler said.

During the nine months through June 30, Barnwell invested $4.9 million developing its oil and gas properties, including $1.2 million in Michigan most of which was to acquire oil and gas leases on a property of more than 220,000 acres, Kinzler said.

The total investment was up from the year-earlier nine months by more than $1 million, or 27 percent.

Kinzler said drilling in Canada has been good. Out of 43 wells, 37 are commercially productive, he said.

Nine-months profit was up 12.9 percent at $940,000, or 71 cents a share, from $840,000, or 63 cents a share in year-earlier period. Revenues for the latest nine months were $11.1 million, up 5.7 percent from $10.5 million.

Barnwell said prices were higher on average through the nine months.