Barnwell profit triples on realty deal

Barnwell Industries Inc. of Honolulu said yesterday its net income more than tripled in the company's fiscal third quarter after its 78 percent-owned real estate partnership closed on a land deal on the Big Island.

The company's earnings jumped 247 percent to $3 million, or 35 cents a share, from $874,000, or 10 cents a share, a year earlier. Revenue surged 73.2 percent to $17.1 million from $9.9 million.

Barnwell's earnings included $6.2 million in revenue from Kaupulehu Deve- lopments, which finalized a transaction in June on the second increment of an 870-acre area on the Big Island that is earmarked for homes and a golf course.

The company also received a $1.2 million percentage payment on the first increment of the same 870-acre development as part of an arrangement that gives Barnwell a percentage of the sales prices of the residential lots when they are sold to the public.

Barnwell's net income for the quarter also included a $1.1 million noncash deferred tax benefit due to reductions in Alberta and Canadian federal corporate income tax rates. There were no tax benefits a year ago.

The company, which in fiscal 2005 generated 74 percent of its revenue from its oil and natural gas in Alberta, Canada, boosted revenue from those operations 8 percent, or $644,000, from the year-earlier quarter, due to price gains for oil and natural gas liquids.

Barnwell more than doubled its investment in oil and gas exploration and development during the quarter to $6.2 million from $2.8 million. Meanwhile, it declared a dividend of 5 cents a share that will be paid Sept. 15 to shareholders of record on Sept. 1.