Barnwell Industries Reports Improved Net Loss and Revenue Growth for Q2 2026

Barnwell Industries, Inc. reported a net loss of $440,000 for the three months ended June 30, 2026, a significant improvement from a net loss of $1,550,000 during the same period in 2025. For the nine months ended June 30, 2026, the net loss attributable to Barnwell was $3,016,000, compared to a loss of $4,674,000 in the prior year. The company's total revenues for the latest quarter were $3,379,000, up from $3,192,000 in the previous year, while revenues for the nine-month period decreased to $8,660,000 from $10,695,000. The increase in quarterly revenue was primarily driven by higher oil and natural gas prices, despite a decrease in production volumes.

Barnwell's financial position showed improvement, with total assets rising to $21,489,000 as of June 30, 2026, compared to $20,812,000 at the end of the previous fiscal year. Current assets increased to $6,486,000, up from $5,230,000, largely due to a rise in cash and cash equivalents, which reached $4,467,000, compared to $2,886,000 a year earlier. The company also reported a reduction in total liabilities to $12,552,000 from $13,790,000, reflecting a decrease in current liabilities.

Operationally, Barnwell's oil and natural gas segment saw an operating profit of $757,000 for the three months ended June 30, 2026, compared to $27,000 in the same period last year. This improvement was attributed to a $188,000 increase in revenues, a $298,000 decrease in depletion expenses, and a $200,000 reduction in impairment charges. However, the company experienced a decline in production volumes due to the sale of its U.S. oil and natural gas assets in August 2025, which contributed to lower overall revenues for the nine-month period.

Strategically, Barnwell has been focusing on its land investment segment, which includes a 77.6% interest in Kaupulehu Developments and a 75% interest in KD Kona. The company is in the process of selling its remaining Hawaii real estate-related interests, with a Purchase and Sale Agreement signed on July 31, 2026, for $1,770,000. This transaction is expected to close by September 15, 2026, subject to customary conditions. The company anticipates that this sale will allow it to exit its remaining real estate interests, although there are no guarantees regarding the timing or completion of the transaction.

Looking ahead, Barnwell's management remains cautious but optimistic about future operations, particularly in the oil and natural gas sector, where they expect to benefit from higher commodity prices. The company is also focused on maintaining liquidity, with a working capital surplus of $3,070,000 as of June 30, 2026. However, the ongoing challenges related to production volumes and market conditions will continue to influence the company's performance in the near term.