Barnwell Industries Inc., the Honolulu-based real estate, drilling and energy company, said net profit fell to $401,000, or 5 cents a share, in the quarter ended Sept. 30 as revenue declined for its real estate consulting services and it incurred higher oil and natural gas operating expenses.

The earnings were 78 percent lower than a year earlier when it recorded a profit of $1.84 million, or 21 cents a share.

The quarter was also the end of Barnwell's fiscal year, and the company reported lower earnings compared to a year earlier.

The company noted the results were being compared to Barnwell's best year ever and that fiscal 2007 was its ninth consecutive year of profits.

"Continued strong earnings by Kaupulehu Developments, Barnwell's 77.6-percent owned land partnership, positive results in our contract drilling operations, and solid earnings in our oil and natural gas segment all contributed to this successful year," said Morton Kinzler, Barnwell chairman and chief executive officer, in a press statement.

He said the past year was also a year of acquisitions for the company, including its purchase of a passive minority ownership interest in the Hualalai Resort and acquisition of a minority ownership stake in the Kona Village Resort.

The company said it also bought lot acquisition rights in an upland area of Ka'upulehu.

Barnwell's board of directors declared a cash dividend of 5 cents a share payable on Jan. 22, 2008 to shareholders of record on Jan. 7.

Barnwell's shares fell 15 percent, or $1.94, to $10.81.

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