Lower fuel prices sent Barnwell Industries Inc.'s latest quarterly earnings tumbling.

The company said it earned $424,000, or 5 cents per share, during the three months ending Dec. 31, 2008.

That compares with an unusually high year-earlier period when the company netted $3.3 million, or 39 cents per share.

"Net earnings for the three months ended Dec. 31, 2008, decreased due to lower revenues as a result of lower natural gas, oil and natural gas liquids prices," said Morton Kinzler, Barnwell's Chairman and CEO.

The comparison with the year-earlier quarter was also skewed by a $909,000 deferred tax benefit that the company received in 2007. Barnwell said it received no such tax benefit in the October-December 2008 quarter.

Barnwell is based in Honolulu but explores and sells oil and natural gas in Canada, provides contract drilling services and develops high-end real estate on the Big Island.

The company said its Kaupulehu Developments subsidiary received nearly $2.7 million during the quarter from development options. The company said that Kaupulehu is nearing completion of the first of its homes this spring.

Overall revenues dropped to $9.9 million from $15.7 million in the year-earlier period.

But Kinzler said Barnwell "is in a good position to weather the current economic crisis" with cash holdings of more than $10.1 million.