Barnwell Industries Inc.'s earnings plunged 87.2 percent in its fiscal first quarter from the year-ago period due to lower prices for natural gas, oil and natural gas liquids; lower receipts at the company's real estate-related segments; and less contract water-drilling work.

The Honolulu-based company, which has oil and natural gas operations in Alberta, Canada, real estate holdings on the Big Island and a state-wide drilling business, posted net income of $424,000, or 5 cents a share, compared with $3.3 million, or 39 cents a share, a year earlier.

In the year-earlier quarter, Barnwell's earnings included a deferred tax benefit of $909,000, due to reductions in Canadian federal corporate income tax rates. There was no such benefit last quarter.

Revenue sank 36.6 percent to $9.9 million from $15.7 million.

Despite the lower earnings and revenue, Morton Kinzler, chairman and chief executive of Barnwell, said a positive working capital and a cash balance of $10.1 million puts the company “;in a good position to weather the current economic crisis the world is experiencing.”;

Kaupulehu Developments, Barnwell's 77.6 percent-owned Big Island land development partnership, earlier in 2008 received $886,000 in advance for the quarter ended Dec. 31 for the remaining portion of the eighth of 10 scheduled option payments, and $1.8 million relating to the development rights within Hualalai Resort at Kaupulehu in North Kona.