Barnwell Industries Inc (BRN) reported Q4 2024 revenue of $4.268 million with a gross profit of $58 thousand, yielding a gross margin of 1.36%. The quarter delivered a net loss of $1.883 million and an EBITDA of -$0.978 million, indicating the business remains leveraged to a low-volume, high-fixed-cost operating model. The bottom-line figure presented as earnings per share (EPS) appears incongruent with the net loss in the period; the reported EPS of $0.37 vs. a negative net income suggests a data consistency issue within the provided inputs. Nevertheless, cash flow generation was positive on an operating basis, with net cash provided by operating activities of $1.172 million and free cash flow of $81 thousand, supported by a working-capital inflow of approximately $2.003 million. The company finished the quarter with a solid liquidity position: cash and cash equivalents of $4.505 million and total debt of only $75 thousand, yielding a negative net debt of roughly $4.43 million, underscoring a favorable liquidity buffer for the near term.
Year-over-year and quarter-over-quarter comparisons show pronounced deterioration in revenue and profitability: revenue declined by about 37.6% YoY and 22.8% QoQ; gross profit dropped by ~95% YoY and ~93% QoQ; operating income deteriorated sharply (YoY ~-3,087% and QoQ ~-386%); and net income declined about 1,861% YoY and ~51% QoQ. Despite the weak profitability metrics, the company’s cash-flow dynamics improved versus the prior period primarily due to working-capital movements and non-cash depreciation. Management commentary (where available) historically emphasizes disciplined cost management and cash-flow preservation, but formal forward guidance was not disclosed in the provided data. Investors should assess BRN’s ability to translate its cash-generation into sustained profitability as production scales in Alberta’s oil & gas assets and related land investments evolve.
Overall investment thesis remains cautious: BRN exhibits robust liquidity and very low leverage for a micro-cap E&P player, yet profitability remains pressured by a small asset base and high fixed costs. The company’s strategic options include further capitalization of Alberta oil assets, potential monetization or strategic use of Hawaii land investments, and continued conservatism in capital expenditure. The near-term risk revolves around commodity-price volatility and production volumes, while the near-term upside hinges on asset optimization and any unexpected working-capital efficiency gains.