Barnwell quarterly net triples
The company cites higher prices for oil and natural gas and a foreign tax benefit
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Barnwell Industries Inc.'s net income nearly tripled in its fiscal first quarter on an increase in oil and natural gas revenue, a Canadian corporate income tax benefit and a decrease in incentive compensation costs due to the lower value of its stock options.
The Honolulu-based company had earnings of $3.3 million, or 39 cents a share, versus $1.1 million, or 13 cents a share, a year ago.
Revenue climbed 18 percent to $15.7 million from $13.3 million.
Barnwell also received $3.2 million as part of its 77.6 percent-owned Big Island land development partnership, Kaupulehu Developments.
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Barnwell Industries Inc. said yesterday its net income jumped 198 percent in its fiscal first quarter due to higher oil and natural gas prices, a foreign tax benefit and a decrease in incentive compensation costs.
The Honolulu-based company, which conducts oil and natural gas operations in Alberta, Canada, posted earnings of $3.3 million, or 39 cents a share, versus $1.1 million, or 13 cents a share, a year ago.
Revenue climbed 18 percent to $15.7 million from $13.3 million, bolstered by a $1.7 million increase in oil and natural gas sales from the year-earlier quarter.
Some industry observers have said that the weakening U.S. economy might drive down energy prices because of reduced demand.
But Barnwell Chief Financial Officer Russell Gifford said he doesn't see a big decline soon.
"We're always concerned about a decline in demand, but generally, we expect prices to be pretty solid throughout the year," he said.
Barnwell's earnings for the quarter ended Dec. 31 were helped by deferred tax benefits of $909,000 due to reductions in Canadian federal corporate income tax rates. There was no such benefit a year ago.
In addition, Barnwell's incentive compensation costs decreased $1.3 million, primarily due to the lower value of its stock options from the year-earlier quarter.
Barnwell also received $3.2 million as part of its 77.6 percent-owned Big Island land development partnership, Kaupulehu Developments. That included $2.7 million for the seventh of 10 scheduled option payments related to the development rights within Hualalai Resort at Kaupulehu in the North Kona district, and $540,000 for an Increment I payment related to an adjacent project. A year earlier, Kaupu- lehu Developments received $3.8 million in the quarter.
"The company continues to move forward in its residential homes construction project at Kaupulehu," said Morton Kinzler, chairman and chief executive of Barnwell.
Construction began on two houses last month, he said.
Barnwell has two other lots -- one purchased on Jan. 31 of this year -- that haven't been developed yet.
The company also announced it was maintaining its quarterly dividend at 5 cents a share. It will be payable March 17 to stockholders of record on March 3.