Barnwell profit soared in late '09
Gains from its real estate investments and contract drilling work on the Big Island helped Honolulu-based Barnwell Industries Inc. post a more than fourfold gain in earnings in the final three months of 2009.
Net income totaled $1.95 million, or 24 cents a share for the quarter, compared with $424,000, or 5 cents a share during the same period a year earlier.
Revenue increased to $13.17 million in the October-December quarter, up from $9.92 million during the year-ago quarter.
Barnwell's main revenue sources are energy exploration in Canada and real estate investment and development in Hawai'i.
Barnwell said it received a $2.66 million option payment related to development rights at the Hualalai Resort in North Kona, and $1.16 million in percentage of sales payments. During the same quarter a year earlier, Barnwell received $886,000 from development rights and no percentage of sales payments from the project. Barnwell owns a 77.6 percent stake in the development partnership.
Barnwell also has completed two luxury homes in the adjacent Kaupulehu Resort, one of which is on the market for $9.4 million.
The earnings growth also included revenue from contracts Barnwell has to drill water wells on the Big Island. The company also benefited from several one-time factors, including an income tax benefit and a noncash write-down that were not present in the year-earlier quarter.
The earnings gains were partially offset by lower operating profits in Barnwell's oil and natural gas business in Canada due to lower prices and production, the company said.
Barnwell shares closed yesterday up 21 cents at $3.80 on the American Stock Exchange. Barnwell stock in the past 52 weeks has traded between $2.25 and $5.85.