Barnwell profits
fall 47.6%

Star-Bulletin staff

Earnings at Honolulu-based Barnwell Industries Inc. fell more 47.6 percent in the company's second quarter, reflecting three months without revenue from the company's Big Island land options but also high natural gas prices.

For the three months ending March 31, the oil-and-gas exploration company reported earnings of $1.40 million, compared with $2.67 million in the same quarter a year ago, according to results released today.

Earnings per diluted share dropped 47.2 percent for the quarter, to $1.02 from $1.93.

Revenues for the quarter were generated only by oil and gas earnings and the company's contract drilling segment, Barnwell Chairman and Chief Executive Officer Morton H. Kinzler said.

Results from the company's second quarter in 2000 included revenues from the sale of rights to develop the Four Seasons Resort Hualalai on the Big Island, Kinzler said.

Barnwell's revenues fell 38 percent to $7.08 million from $11.41 million in 2000.

Comparing the company's results without including the land options, shows that quarterly earnings increased $900,000, Kinzler said.

"Those results were due to increases in natural gas and natural gas liquids prices," he said.

Natural gas prices are up 206 percent over the company's second quarter in 2000, and natural gas liquids are up 71 percent, the company reported.

Barnwell's stock closed up 20 cents to $19 today on the American Stock Exchange.