Posted at 9:14 a.m., Tuesday, February 13, 2007
Lower petroleum prices pressure Barnwell earnings
Advertiser Staff
Honolulu-based Barnwell Industries Inc. reported a sharp drop in earnings for the final three months of 2006 compared with the same period a year earlier, due largely to lower prices for petroleum products and higher operating and depletion costs.Barnwell earned $1.1 million in the latest quarter, or 13 cents per share, down from $6,3 million, or 73 cents a share, during the same period in 2005.
Additionally, earnings for the 2005 period included deferred tax benefits of $2,170,000 and a $700,000 gain from the sale of a drill rig that were not repeated in the 2006 quarter.
Natural gas and oil revenues decreased $3,730,000, or 31 percent for the most recent quarter, compared to the prior year's comparable period due to lower prices. The company noted, however, that after December 31 market prices have increased.
Barnwell shares were down 27 cents at $20.83 in late trading on the American Stock Exchange.
