Barnwell Industries, Inc. reported a net loss of $1.55 million for the three months ended June 30, 2025, compared to a loss of $1.25 million for the same period in 2024. Revenue for the quarter decreased to $3.19 million from $4.51 million year-over-year, primarily due to a significant drop in oil and natural gas revenues, which fell by 29% to $3.15 million. For the nine months ending June 30, 2025, the company recorded a net loss of $4.68 million, up from a loss of $3.68 million in the prior year, with total revenues declining to $10.70 million from $14.35 million.
The financial performance reflects several operational challenges, including a decrease in production from aging wells and lower oil prices. General and administrative expenses surged by 43% in the latest quarter, driven by costs associated with a shareholder consent solicitation and legal disputes, totaling $1.87 million. Additionally, the company incurred a ceiling test impairment of $200,000 for the quarter, a reduction from $599,000 in the previous year, indicating some relief in asset valuation pressures.
Strategically, Barnwell completed the sale of its wholly-owned subsidiary, Water Resources International, in March 2025, which has been classified as discontinued operations. This sale has allowed the company to focus on its core segments: oil and natural gas operations in Canada and the U.S., and land investments in Hawaii. The company is also exploring potential funding sources, including debt financing and equity issuance, to address its working capital deficit of $1.32 million as of June 30, 2025.
Operationally, Barnwell's oil and natural gas segment generated a modest operating profit of $27,000 for the latest quarter, down from $326,000 a year earlier. The company reported a foreign currency gain of $219,000, contrasting with a loss of $61,000 in the prior year, which helped mitigate some financial pressures. The company’s total assets decreased to $23.76 million from $30.67 million, reflecting the impact of the sale of discontinued operations and ongoing operational challenges.
Looking ahead, Barnwell faces significant uncertainty regarding its ability to sustain operations due to fluctuating oil prices and ongoing legal costs. The company has indicated that while the recent sale of its U.S. oil and natural gas assets for $2.3 million will provide short-term liquidity, it may not be sufficient to alleviate concerns about its long-term viability. The management is actively seeking additional funding sources to support its operations and capital expenditures moving forward.
About BARNWELL INDUSTRIES INC
Barnwell Industries, Inc. operates primarily in oil and natural gas exploration, production, and development in Alberta, Canada, Oklahoma, and Texas. It also holds land investments in Hawaii and provides water well drilling and pump installation services there. The company’s core business model focuses on managing oil and gas assets with low decline rates, land interests in Hawaiian real estate, and contract drilling services, targeting energy markets and land developers with a diversified revenue base.
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