Barnwell net triples on energy gains, tax credit
Barnwell Industries Inc., getting an energy boost from its oil and natural gas operations, said yesterday that net income more than tripled in its fiscal second quarter.
The Honolulu-based company's earnings soared 276 percent to $3.4 million or 39 cents a share, from $910,000, or 11 cents a share, a year earlier.
Its net income was fueled by a nearly $2 million deferred foreign tax credit benefit recognized as a result of Barnwell's projected increase in oil and natural gas expenditures in Canada. There was no such benefit a year earlier.
Revenue gushed 34 percent to $13.5 million from $10 million as oil and natural gas contributions rose 22 percent, due to the prices received for oil and natural gas and a 2 percent increase in natural gas production.
"The company significantly increased its investments in oil and gas exploration and development during the three months," said Morton Kinzler, chairman and chief executive officer of Barnwell.
Barnwell boosted those investments 87 percent to $8.3 million from $4.5 million a year earlier.
For the first six months of its fiscal year, the company's oil and gas investments increased 68 percent to $14.9 million, a 25 percent increase from its entire oil and gas capital expenditures of just two fiscal years ago.
The company, which also has real estate holdings on the Big Island, recognized net revenue of $2.35 million from land investment in the quarter after receiving a payment in January of $2.5 million for its 77.6 percent-owned land development partnership. The payment was based on lot sales made by WB KD Acquisition LLC for a project at Kaupulehu in North Kona.