Barnwell Industries, Inc. reported fourth‑quarter revenue of $3.022 million, down 5.6% from $3.192 million in the same period last year, and a net loss from continuing operations of $2.429 million, translating to a loss of $0.24 per share. For the full year, revenue fell 20.5% to $13.697 million from $17.7 million in 2024, while the net loss widened to $7.103 million, or $0.71 per share, compared with a $5.6 million loss in 2023. The decline reflects a combination of lower commodity prices, reduced production volumes, and a softer performance in the company’s land‑investment portfolio.
Barnwell’s management attributed the widened loss to several one‑time and structural costs. General and administrative expenses rose sharply because of a shareholder‑consent solicitation and the loss on the sale of U.S. oil and gas working interests. The company also recorded a $1.05 million loss on the sale of Water Resources International, Inc., and incurred additional costs related to a proxy contest that increased legal and advisory fees. These items, combined with lower operating income in the Canadian exploration and production segment, pushed the company into a larger quarterly loss.
Segment analysis shows that the Canadian E&P unit remains the primary revenue driver, but its operating margin contracted as drilling costs climbed and production fell. The Hawaiian land‑investment segment, which Barnwell has been positioning as a growth engine, posted a modest $1.2 million in revenue, down 12% from the previous year, reflecting softer real‑estate returns and a pause in new acquisitions. The company’s focus on these two segments is part of a broader strategy to divest non‑core U.S. assets and streamline operations.
CEO Craig D. Hopkins emphasized the strategic intent behind the divestitures: “The sale of our U.S. oil and natural gas properties enables us to concentrate resources on the workover and optimization initiatives underway at our Twining field, supporting long‑term production stability.” He added that the proceeds will help fund the company’s transition to a more focused, lower‑cost structure.
The market reacted negatively, with Barnwell’s stock falling 4.5% on the day of the results. Investors cited the widening loss and the continued need for restructuring as primary concerns, even as the company’s private placement in November raised $2.443 million to shore up its balance sheet.
Looking ahead, Barnwell plans to close its Hawaii office early next year and consolidate its headquarters between Houston and Calgary. The company’s guidance for the next quarter remains cautious, with management signaling that commodity price volatility and ongoing cost‑control initiatives will shape near‑term performance. The earnings report underscores the company’s ongoing transition and the financial headwinds it faces as it refocuses on its core Canadian and Hawaiian operations.
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