Barnwell Industries Inc (BRN, Financial) filed Annual Report for the period ended 2012-09-30.
Barnwell Industries has a market cap of $27.6 million; its shares were traded at around $3.328 with and P/S ratio of 0.7. Barnwell Industries had an annual average earning growth of 4.2% over the past 10 years.
The average exchange rate of the Canadian dollar to the U.S. dollar decreased 2% in fiscal 2012, as compared to fiscal 2011, and the exchange rate of the Canadian dollar to the U.S. dollar increased 6% at September 30, 2012, as compared to September 30, 2011. Accordingly, the assets, liabilities, stockholders equity, and revenues and expenses of Barnwells subsidiaries operating in Canada have been adjusted to reflect the change in the exchange rates. Barnwells Canadian dollar assets are greater than its Canadian dollar liabilities; therefore, increases or decreases in the value of the Canadian dollar to the U.S. dollar generate other comprehensive income or loss, respectively. Other comprehensive income and losses are not included in net (loss) earnings. The other comprehensive income due to foreign currency translation adjustments, net of taxes, for fiscal 2012 was $1,927,000, a $2,373,000 change from other comprehensive loss due to foreign currency translation adjustments, net of taxes, of $446,000 in fiscal 2011. There were no taxes on other comprehensive (loss) income due to foreign currency translation adjustments in fiscal 2012 and 2011 due to a full valuation allowance on the related deferred tax assets.
Oil and natural gas revenues decreased $4,194,000 (15%) from $28,804,000 in fiscal 2011 to $24,610,000 in fiscal 2012, primarily due to decreases in natural gas prices and net natural gas production, which decreased 41% and 7%, respectively, as compared to the prior year. The decrease was partially offset by a 7% increase in net oil production, as compared to the prior year.
Contract drilling revenues decreased $1,515,000 (39%) to $2,340,000 in fiscal 2012, as compared to $3,855,000 in fiscal 2011, and contract drilling costs decreased $891,000 (23%) to $2,991,000 in fiscal 2012, as compared to $3,882,000 in fiscal 2011. The contract drilling segment generated a $1,160,000 operating loss before general and administrative expenses during fiscal 2012, a decrease in operating results of $573,000 as compared to an operating loss before general and administrative expenses of $587,000 in fiscal 2011. The decrease in operating results was due to lower well drilling activity as compared to the prior year and increased losses on certain pump installation and repair contracts due to unforeseen difficulties.
Cash flows used in financing activities totaled $6,209,000 for fiscal 2012, as compared to $2,689,000 of cash flows used in financing activities for fiscal 2011. The $3,520,000 increase in cash outflows is primarily due to a $4,264,000 increase in debt repayments resulting largely from the sale of one luxury residence in June 2012. The increase was partially offset by a $711,000 decrease in distributions to non-controlling interests due to decreased land investment segment sales in the current year period as compared to the comparable prior year period.
Read the The complete Report
Barnwell Industries has a market cap of $27.6 million; its shares were traded at around $3.328 with and P/S ratio of 0.7. Barnwell Industries had an annual average earning growth of 4.2% over the past 10 years.
Highlight of Business Operations:
Barnwells oil and natural gas segment derived 67% of its oil and natural gas revenues in fiscal 2012 from three individually significant customers, Shell Trading Canada (49%), ProGas Limited (11%) and Glencoe Resources Limited (7%). Barnwells natural gas production from Dunvegan and other properties is sold on the spot market under daily and monthly contracts in a manner consistent with current industry practice to marketers. In fiscal 2012, 12% of Barnwells production was marketed by an agent acting on behalf of Barnwell where all products are sold directly to the final purchasers with the agent not taking title to the production.The average exchange rate of the Canadian dollar to the U.S. dollar decreased 2% in fiscal 2012, as compared to fiscal 2011, and the exchange rate of the Canadian dollar to the U.S. dollar increased 6% at September 30, 2012, as compared to September 30, 2011. Accordingly, the assets, liabilities, stockholders equity, and revenues and expenses of Barnwells subsidiaries operating in Canada have been adjusted to reflect the change in the exchange rates. Barnwells Canadian dollar assets are greater than its Canadian dollar liabilities; therefore, increases or decreases in the value of the Canadian dollar to the U.S. dollar generate other comprehensive income or loss, respectively. Other comprehensive income and losses are not included in net (loss) earnings. The other comprehensive income due to foreign currency translation adjustments, net of taxes, for fiscal 2012 was $1,927,000, a $2,373,000 change from other comprehensive loss due to foreign currency translation adjustments, net of taxes, of $446,000 in fiscal 2011. There were no taxes on other comprehensive (loss) income due to foreign currency translation adjustments in fiscal 2012 and 2011 due to a full valuation allowance on the related deferred tax assets.
Oil and natural gas revenues decreased $4,194,000 (15%) from $28,804,000 in fiscal 2011 to $24,610,000 in fiscal 2012, primarily due to decreases in natural gas prices and net natural gas production, which decreased 41% and 7%, respectively, as compared to the prior year. The decrease was partially offset by a 7% increase in net oil production, as compared to the prior year.
Contract drilling revenues decreased $1,515,000 (39%) to $2,340,000 in fiscal 2012, as compared to $3,855,000 in fiscal 2011, and contract drilling costs decreased $891,000 (23%) to $2,991,000 in fiscal 2012, as compared to $3,882,000 in fiscal 2011. The contract drilling segment generated a $1,160,000 operating loss before general and administrative expenses during fiscal 2012, a decrease in operating results of $573,000 as compared to an operating loss before general and administrative expenses of $587,000 in fiscal 2011. The decrease in operating results was due to lower well drilling activity as compared to the prior year and increased losses on certain pump installation and repair contracts due to unforeseen difficulties.
Cash flows used in financing activities totaled $6,209,000 for fiscal 2012, as compared to $2,689,000 of cash flows used in financing activities for fiscal 2011. The $3,520,000 increase in cash outflows is primarily due to a $4,264,000 increase in debt repayments resulting largely from the sale of one luxury residence in June 2012. The increase was partially offset by a $711,000 decrease in distributions to non-controlling interests due to decreased land investment segment sales in the current year period as compared to the comparable prior year period.
Read the The complete Report
