Barnwell Industries to Divest Hawaii Contract Drilling Operations Amid Financial Restructuring
Barnwell Industries, Inc. plans to divest its Hawaii contract water well drilling operations, expected to close in early 2024. The sale aims to optimize corporate structure, reduce overhead, and focus on higher-return investments in oil and gas, particularly in the Twining area.
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Barnwell Industries, Inc. reported a consolidated revenue of $25.3 million for the year ending September 30, 2023, with a net loss of $961,000. The company plans to sell its Hawaii contract water well drilling operations, anticipated to finalize in early 2024, aiming to streamline operations and focus on profitable projects.
In fiscal 2023, production of oil, natural gas, and natural gas liquids increased by 12%, 31%, and 8% year-over-year, driven primarily by new production in Canada. However, prices for these products dropped significantly by 20%-43% during the same period. The company also invested over $10 million in new wells and facilities in the Permian Basin and Twining area, maintaining a debt-free status with $2.5 million in working capital.
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