Drop in oil, gas prices
hurts Barnwell’s net

Star-Bulletin staff

Lower oil and natural gas prices contributed to a 58 percent drop in quarterly net profit for Barnwell Industries Inc., a Honolulu-based oil and natural gas exploration company

Barnwell reported a profit of $50,000, or 4 cents a share, for the three months ended Dec. 31, down from a profit of $120,000, or 9 cents a share, in the year-earlier quarter.

Revenues for the first quarter of its fiscal year were $3.3 million, down 10.8 percent from $3.7 million a year earlier.

Prices for natural gas liquids were down 45 percent from a year earlier, oil prices were down 30 percent and natural gas prices were down 4 percent, said Morton H. Kinzler, chairman and chief executive officer.

The price decreases were partially offset by a 19 percent increase in production from new wells, Kinzler said. He said the company is optimistic about the long-term outlook for prices.

Barnwell is a partner in Kaupulehu Developments, which is developing a resort, residential and commercial project on the Big Island. It also does some water drilling in Hawaii, but most of its business is in oil and gas development in Canada.