Barnwell Industries Reports $1.426 Million Net Loss and Revenue Decline in Latest Quarter

Barnwell Industries, Inc. reported a net loss of $1.426 million for the three months ending December 31, 2025, a slight improvement from a net loss of $1.917 million in the same period the previous year. Total revenues for the quarter were $2.746 million, down from $3.934 million year-over-year, primarily due to a significant decrease in oil and natural gas revenues, which fell to $2.630 million from $3.897 million. The decline in revenue was attributed to reduced production levels following the sale of U.S. oil and natural gas assets in August 2025, as well as lower realized oil prices.

In terms of operational changes, Barnwell's general and administrative expenses increased by 39% to $1.616 million, driven by higher personnel costs and professional service fees related to a proxy contest and various legal actions. The company also recorded a foreign currency gain of $47,000, contrasting with a loss of $351,000 in the prior year, reflecting favorable exchange rate movements. The company’s oil and natural gas segment reported an operating loss of $32,000, an improvement from a loss of $116,000 in the previous year, largely due to a decrease in ceiling test impairments and operating expenses.

Barnwell's total assets increased to $21.467 million as of December 31, 2025, up from $20.812 million at the end of the previous quarter. The company’s cash and cash equivalents rose to $3.622 million, compared to $2.886 million at the end of September 2025. The increase in cash was bolstered by a private placement offering that generated approximately $2.408 million in net proceeds from the issuance of 2,221,141 shares of common stock. This capital infusion is expected to support ongoing operations and address outstanding legal costs.

The company has also made strategic moves in its land investment segment, including a contract to sell remaining rights for Increment II for $2 million, with an initial payment of $70,000 recognized as revenue. However, the completion of this transaction is contingent on various conditions, and no additional revenue has been recognized pending fulfillment of these conditions. Barnwell continues to hold a non-controlling interest in several land development partnerships in Hawaii, which are expected to contribute to future revenues as development progresses.

Looking ahead, Barnwell's management has indicated a cautious outlook, emphasizing the need to manage operational costs and navigate the impacts of market conditions on oil and gas prices. The company remains focused on its core segments of oil and natural gas production in Canada and land investments in Hawaii, while also addressing the financial implications of its recent strategic decisions.