Barnwell Industries (NYSE American: BRN) reported financial results for Q2 2025, showing a net loss from continuing operations of $1,538,000 ($0.15 per share) on revenue of $3,569,000. This represents a decline from Q2 2024's revenue of $4,678,000 and net loss of $1,306,000. The increased losses were primarily due to $978,000 in expenses related to an ongoing shareholder consent solicitation and proxy contest. The company completed the sale of its water drilling subsidiary for $1,050,000, recording a $193,000 loss. Production decreased across all segments: oil (-14%), natural gas (-24%), and natural gas liquids (-13%). Due to proxy contest costs and tariff impacts on oil prices, the company expressed substantial doubt about its ability to continue as a going concern. Management is exploring funding options, including debt financing and asset sales. The quarter ended with a working capital deficit of $57,000 and cash position of $1,432,000.
Barnwell Industries (NYSE American: BRN) ha comunicato i risultati finanziari del secondo trimestre 2025, registrando una perdita netta dalle operazioni in corso di 1.538.000 dollari (0,15 dollari per azione) su ricavi pari a 3.569.000 dollari. Questo rappresenta un calo rispetto ai ricavi di 4.678.000 dollari e alla perdita netta di 1.306.000 dollari del secondo trimestre 2024. Le perdite maggiori sono principalmente dovute a 978.000 dollari di spese legate a una continua richiesta di consenso degli azionisti e a una contestazione di proxy. La società ha completato la vendita della sua controllata per la perforazione di acqua per 1.050.000 dollari, registrando una perdita di 193.000 dollari. La produzione è diminuita in tutti i segmenti: petrolio (-14%), gas naturale (-24%) e liquidi da gas naturale (-13%). A causa dei costi della contestazione di proxy e dell'impatto delle tariffe sui prezzi del petrolio, l'azienda ha espresso gravi dubbi sulla sua capacità di continuare come azienda in funzionamento. La direzione sta esplorando opzioni di finanziamento, inclusi finanziamenti a debito e vendite di asset. Il trimestre si è chiuso con un deficit di capitale circolante di 57.000 dollari e una posizione di cassa di 1.432.000 dollari.
Barnwell Industries (NYSE American: BRN) informó los resultados financieros del segundo trimestre de 2025, mostrando una pérdida neta de las operaciones continuas de 1.538.000 dólares (0,15 dólares por acción) con ingresos de 3.569.000 dólares. Esto representa una disminución respecto a los ingresos de 4.678.000 dólares y la pérdida neta de 1.306.000 dólares del segundo trimestre de 2024. Las pérdidas aumentadas se debieron principalmente a 978.000 dólares en gastos relacionados con una solicitud continua de consentimiento de accionistas y una disputa por poderes. La compañía completó la venta de su subsidiaria de perforación de agua por 1.050.000 dólares, registrando una pérdida de 193.000 dólares. La producción disminuyó en todos los segmentos: petróleo (-14%), gas natural (-24%) y líquidos de gas natural (-13%). Debido a los costos de la disputa por poderes y el impacto de los aranceles en los precios del petróleo, la empresa expresó dudas sustanciales sobre su capacidad para continuar como empresa en marcha. La gerencia está explorando opciones de financiamiento, incluyendo financiamiento con deuda y venta de activos. El trimestre terminó con un déficit de capital de trabajo de 57.000 dólares y una posición de efectivo de 1.432.000 dólares.
Barnwell Industries (NYSE American: BRN)는 2025년 2분기 재무 실적을 발표하며, 순손실 1,538,000달러(주당 0.15달러)를 기록했고 매출은 3,569,000달러였습니다. 이는 2024년 2분기 매출 4,678,000달러 및 순손실 1,306,000달러에 비해 감소한 수치입니다. 손실 증가의 주요 원인은 지속 중인 주주 동의 요청 및 대리권 분쟁과 관련된 978,000달러의 비용 때문입니다. 회사는 물 시추 자회사를 1,050,000달러에 매각 완료했으며, 193,000달러의 손실을 기록했습니다. 모든 부문에서 생산이 감소했습니다: 석유(-14%), 천연가스(-24%), 천연가스 액체(-13%). 대리권 분쟁 비용과 석유 가격에 대한 관세 영향으로 인해 회사는 계속 기업으로서의 존속 능력에 대해 중대한 의문을 표명했습니다. 경영진은 부채 금융 및 자산 매각을 포함한 자금 조달 방안을 모색 중입니다. 분기는 57,000달러의 운전자본 적자와 1,432,000달러의 현금 보유로 마감했습니다.
Barnwell Industries (NYSE American : BRN) a publié ses résultats financiers pour le deuxième trimestre 2025, affichant une perte nette des opérations poursuivies de 1 538 000 $ (0,15 $ par action) sur un chiffre d'affaires de 3 569 000 $. Cela représente une baisse par rapport au chiffre d'affaires de 4 678 000 $ et à la perte nette de 1 306 000 $ du deuxième trimestre 2024. L'augmentation des pertes est principalement due à 978 000 $ de dépenses liées à une sollicitation continue du consentement des actionnaires et à un conflit de procuration. La société a finalisé la vente de sa filiale de forage d'eau pour 1 050 000 $, enregistrant une perte de 193 000 $. La production a diminué dans tous les segments : pétrole (-14 %), gaz naturel (-24 %) et liquides de gaz naturel (-13 %). En raison des coûts du conflit de procuration et de l'impact des tarifs sur les prix du pétrole, la société a exprimé des doutes importants quant à sa capacité à poursuivre son activité. La direction explore des options de financement, notamment des financements par emprunt et des ventes d'actifs. Le trimestre s'est terminé avec un déficit de fonds de roulement de 57 000 $ et une trésorerie de 1 432 000 $.
Barnwell Industries (NYSE American: BRN) meldete die Finanzergebnisse für das zweite Quartal 2025 und verzeichnete einen Nettoverlust aus fortgeführten Geschäftsbereichen von 1.538.000 USD (0,15 USD je Aktie) bei einem Umsatz von 3.569.000 USD. Dies stellt einen Rückgang gegenüber dem Umsatz von 4.678.000 USD und dem Nettoverlust von 1.306.000 USD im zweiten Quartal 2024 dar. Die gestiegenen Verluste sind hauptsächlich auf 978.000 USD an Aufwendungen im Zusammenhang mit einer laufenden Aktionärszustimmung und einem Proxy-Kampf zurückzuführen. Das Unternehmen schloss den Verkauf seiner Wasserschutztochter für 1.050.000 USD ab und verbuchte einen Verlust von 193.000 USD. Die Produktion ging in allen Segmenten zurück: Öl (-14 %), Erdgas (-24 %) und Erdgasflüssigkeiten (-13 %). Aufgrund der Kosten des Proxy-Kampfes und der Auswirkungen von Zöllen auf die Ölpreise äußerte das Unternehmen erhebliche Zweifel an seiner Fortführungsfähigkeit. Das Management prüft Finanzierungsoptionen, einschließlich Fremdfinanzierung und Vermögensverkäufen. Das Quartal endete mit einem Working-Capital-Defizit von 57.000 USD und einer Barreserve von 1.432.000 USD.
Positive
Sale of Water Resources subsidiary for $1,050,000 to help streamline operations
Reduced ceiling test impairment of $52,000 compared to $1,677,000 in prior year
Decrease of $589,000 in oil and natural gas depletion expenses
Negative
Net loss from continuing operations increased to $1,538,000
Revenue declined 23.7% to $3,569,000 from $4,678,000 year-over-year
Production decreases across all segments (oil -14%, natural gas -24%, natural gas liquids -13%)
Ongoing proxy contest adding significant expenses ($978,000 in Q2)
Working capital deficit of $57,000
Management expressed substantial doubt about ability to continue as going concern
Loss of $193,000 on sale of Water Resources subsidiary
Insights
Barnwell faces going concern issues with growing losses due to proxy contest costs and declining energy production.
Barnwell's Q2 results reveal serious financial deterioration with revenue declining 23.7% year-over-year to $3.57 million while losses widened from $1.31 million to $1.54 million. The most alarming element is management's explicit statement of "substantial doubt regarding ability to continue as a going concern" - essentially warning investors that bankruptcy risk is now material.
Two key factors are driving this crisis: First, the $978,000 in extraordinary expenses (72% increase in G&A) from an ongoing proxy contest that's draining cash and hampering growth opportunities. Second, production declines across all energy products (14% in oil, 24% in natural gas, 13% in NGLs) signal fundamental operational challenges.
The company has taken initial survival steps by divesting its Water Resources subsidiary for $1.05 million, which generated a $193,000 loss but provided critical liquidity. However, this won't resolve the underlying crisis. The $57,000 working capital deficit and limited cash position of just $1.43 million provide minimal financial runway.
Management is exploring multiple emergency funding options including debt financing, property sales, and potentially selling its remaining stake in Kukio Resort Land Development Partnerships. The lack of lot sales in the current quarter versus two in the prior year further strains cash flow. Recent oil price pressures from tariffs compound these difficulties. Without swift resolution of the proxy contest and successful capital raising, Barnwell's financial viability appears increasingly uncertain.
HONOLULU, May 15, 2025 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) today reported financial results for its second quarter ended March 31, 2025. For the quarter, the Company had revenue from continuing operations of $3,569,000 and a net loss from continuing operations of $1,538,000 or $0.15 per share. In the prior year quarter ended March 31, 2024, the Company reported quarterly revenue from continuing operations of $4,678,000 and a net loss from continuing operations of $1,306,000 or $0.13 per share.
The net loss from continuing operations for the three months ended March 31, 2025, was due to an increase of $906,000, 72%, in general and administrative expenses due to $978,000 in new expenses related to both a shareholder consent solicitation and a proxy contest as compared to the same period in the prior year. Additionally, the loss was due to a decrease of $500,000 in our land investment segment operating results, before non-controlling interests’ share of such profits, due to the Kukio Resort Land Development Partnerships' sale of two lots in the prior quarter period, whereas no lots were sold in the current quarter period.
Non-Cash Impairment, Oil and Gas Production
The net loss from continuing operations for the three months ended March 31, 2025 included a ceiling test impairment of $52,000 as compared to a $1,677,000 ceiling test impairment in the prior year period, a $1,625,000 decrease. Additionally, oil and natural gas depletion in the current year period decreased $589,000 as compared to the second quarter in the prior year due to a lower depletion rate due to prior years’ write downs and decreased production. Oil, natural gas and natural gas liquids production decreased 14%, 24% and 13%, respectively, during the three months ended March 31, 2025, compared to the prior year’s quarter.
Sale of our Water Drilling Subsidiary
During the three months ended March 31, 2025, the Company completed the sale of its wholly-owned subsidiary, Water Resources International, Inc. (“Water Resources”) for $1,050,000. Water Resources drilled water wells and water pumping systems in Hawaii and represented our contract drilling segment. As a result of the sale, the Company has reclassified the results of its contract drilling business as discontinued operations for all periods presented. Having previously sold assets held by this segment, the Company recorded a loss of $193,000 on the sale of Water Resources in the quarter ended March 31, 2025.
Proxy Contest, Expenses Increase
The aforementioned consent solicitation and proxy contest are currently on going and costs will continue to be incurred until the matter is resolved. Accordingly, general and administrative expenses will continue to be affected by these matters beyond March 31, 2025. The Company is unable to estimate the amount of such future costs as the matter as such costs will depend upon the future actions to be taken, which are yet to be determined.
Due to these proxy contest costs, incurred and estimated to be incurred, and the impacts of recently imposed tariffs which have caused a reduction in oil prices and have had an impact on the U.S. economy as a whole, we now face greater uncertainty about our oil and natural gas operating cash inflows, which in turn has raised substantial doubt regarding our ability to continue as a going concern. The Company is investigating potential sources of funding, including debt financing, non-core oil and natural gas property sales and the partial or complete sale of its remaining interests in the Kukio Resort Land Development Partnerships, however, no probable timing or amounts of such funding have yet been secured.
Summary and Outlook
Craig D. Hopkins, CEO, stated, “Our current proxy contest has negatively impacted the Company’s liquidity and hindered its investment and growth opportunities. The completed sale of our contract drilling business will help refocus our efforts and reduce fixed costs in the coming quarters. We are also seeking ways to further reduce costs and enhance profitability. With a streamlined cost structure, Barnwell should be positioned to invest more in operations. The Company ended the quarter with a working capital deficit of $57,000, including $1,432,000 in cash and cash equivalents.
The information contained in this press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. Forward-looking statements include phrases such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates,” “assumes,” “projects,” “may,” “will,” “will be,” “should,” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that might cause actual results to differ materially from Barnwell’s expectations are set forth in the “Forward-Looking Statements,” “Risk Factors” and other sections of Barnwell’s annual report on Form 10-K for the last fiscal year and Barnwell’s other filings with the Securities and Exchange Commission. Investors should not place undue reliance on the forward-looking statements contained in this press release, as they speak only as of the date of this press release, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.
COMPARATIVE OPERATING RESULTS
(Unaudited)
Three months ended
Six months ended
March 31,
March 31,
2025
2024
2025
2024
Revenues
$
3,569,000
$
4,678,000
$
7,503,000
$
9,840,000
Net loss from continuing operations attributable to Barnwell Industries, Inc.
$
(1,538,000
)
$
(1,306,000
)
$
(3,136,000
)
$
(1,656,000
)
Net earnings (loss) from discontinued operations
331,000
(466,000
)
12,000
(780,000
)
Net loss attributable to Barnwell Industries, Inc.
$
(1,207,000
)
$
(1,772,000
)
$
(3,124,000
)
$
(2,436,000
)
Basic and diluted net (loss) earnings per share:
Net loss from continuing operations attributable to Barnwell Industries, Inc.
$
(0.15
)
$
(0.13
)
$
(0.31
)
$
(0.16
)
Net earnings (loss) from discontinued operations
0.03
(0.05
)
-
(0.08
)
Net loss attributable to Barnwell Industries, Inc.
What caused Barnwell Industries (BRN) Q2 2025 losses to increase?
BRN's increased losses were primarily due to $978,000 in new expenses related to a shareholder consent solicitation and proxy contest, plus decreased land investment segment results due to no lot sales in the current quarter compared to two lots sold in the prior year period.
How much did Barnwell Industries (BRN) sell its Water Resources subsidiary for?
Barnwell Industries sold its Water Resources subsidiary for $1,050,000, recording a loss of $193,000 on the sale in Q2 2025.
What is BRN's current financial position as of Q2 2025?
BRN ended Q2 2025 with a working capital deficit of $57,000 and $1,432,000 in cash and cash equivalents. The company has expressed substantial doubt about its ability to continue as a going concern.
How much did Barnwell Industries' (BRN) production decline in Q2 2025?
BRN's production decreased across all segments compared to Q2 2024: oil declined 14%, natural gas decreased 24%, and natural gas liquids dropped 13%.
What steps is Barnwell Industries (BRN) taking to address its financial challenges?
BRN is investigating potential funding sources, including debt financing, non-core oil and gas property sales, and potential sale of interests in Kukio Resort Land Development Partnerships. They are also working to reduce costs and enhance profitability.
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