Barnwell Industries Reports Decrease in Net Loss and Revenue for Q1 2026

Barnwell Industries, Inc. reported a net loss of $1,150,000 for the three months ended March 31, 2026, a decrease from a net loss of $1,207,000 in the same period last year. Revenue for the quarter was $2,535,000, down from $3,569,000 in the prior year, primarily due to a significant decline in oil and natural gas revenues, which fell by $1,060,000. The company attributed this decrease to lower production levels following the sale of its U.S. oil and natural gas assets in August 2025 and a decrease in realized oil prices. For the six months ended March 31, 2026, the net loss was $2,576,000, compared to a loss of $3,124,000 for the same period in 2025.

Barnwell's total assets increased to $21,547,000 as of March 31, 2026, up from $20,812,000 at the end of the previous fiscal period. Current assets rose to $6,421,000, driven by an increase in cash and cash equivalents, which reached $4,016,000, compared to $2,886,000 at the end of September 2025. The company’s total liabilities decreased to $13,388,000 from $13,790,000, reflecting a reduction in current liabilities. The equity attributable to Barnwell Industries increased to $8,159,000, up from $7,022,000, largely due to the issuance of common stock in a private placement and an increase in additional paid-in capital.

Strategically, Barnwell has focused on its oil and natural gas segment in Canada and its land investment segment in Hawaii. The company has seen a notable increase in equity income from affiliates, amounting to $338,000 for the three and six months ended March 31, 2026, compared to no income in the same periods last year. This increase is attributed to cash distributions received from the Kukio Resort Land Development Partnerships, which totaled $323,000 during the current reporting period. The company continues to hold a 19.6% non-controlling interest in these partnerships, which own real estate and development rights in Hawaii.

Operationally, Barnwell's oil and natural gas segment generated an operating profit of $87,000 for the three months ended March 31, 2026, a decrease from $752,000 in the prior year. The decline was primarily due to a 30% drop in oil and natural gas revenues, which was partially offset by reductions in operating expenses and depletion costs. The company reported a production decline of 18% in its Twining area, which has impacted overall revenues. Looking ahead, Barnwell's management remains cautious, emphasizing the need to navigate market conditions and production challenges while focusing on its core operations in Canada and land investments in Hawaii.