Barnwell Industries Reports $1.2 Million Net Loss and Decreased Revenue for Q1 2025

Barnwell Industries, Inc. reported a net loss of $1.2 million for the three months ended March 31, 2025, compared to a loss of $1.55 million in the same period last year. Revenue for the quarter decreased to $3.57 million, down from $4.68 million in the prior year, primarily due to a decline in oil and natural gas production. The company’s oil and natural gas segment generated $3.54 million in revenue, a decrease of 15% year-over-year, while the land investment segment did not contribute any revenue during the quarter, as no lots were sold compared to $500,000 in the previous year.

In terms of operational changes, Barnwell completed the sale of its wholly-owned subsidiary, Water Resources International, Inc., on March 14, 2025, which represented its contract drilling segment. This sale resulted in the classification of related assets and liabilities as discontinued operations. The company recorded a loss of $193,000 on the sale, which was included in the results from discontinued operations. The sale is expected to impact future revenue streams, as the contract drilling segment had previously contributed to the company’s overall financial performance.

Barnwell's general and administrative expenses increased significantly, rising by 72% to $2.16 million for the quarter, largely due to costs associated with a shareholder consent solicitation and proxy contest. The company incurred $978,000 in new fees related to these activities, which contributed to the overall increase in expenses. Additionally, equity in income from affiliates dropped to zero from $1.07 million in the prior year, reflecting the absence of lot sales in the current period.

The company’s total assets decreased to $24.38 million as of March 31, 2025, down from $30.67 million at the end of the previous fiscal year. Current liabilities also fell to $4.85 million from $7.81 million, indicating a reduction in operational obligations. However, Barnwell reported a working capital deficit of $57,000, raising concerns about its liquidity. The company is currently exploring potential funding sources, including debt financing and the sale of non-core assets, to address its financial challenges and sustain operations.

Looking ahead, Barnwell expressed substantial doubt about its ability to continue as a going concern for the next year, citing uncertainties related to oil and natural gas prices, ongoing costs from the shareholder contest, and the need for sufficient cash flows to fund capital expenditures. The company is actively investigating various funding options but has not secured any definitive plans as of the filing date.