BRN Reports Decrease in Revenue for Latest Quarter
Segments of revenue
In the latest quarter, BRN reported total revenues of $6.15 million. The breakdown of revenue by segment is as follows:
Oil and natural gas: The oil and natural gas segment generated revenues of $5.13 million, accounting for the majority of the company's revenue. This represents a slight decrease of $96,000 (2%) compared to the same period in the prior year.
Contract drilling: The contract drilling segment contributed revenues of $993,000, showing a decrease from $1.95 million in the previous year.
Sale of interest in leasehold land: BRN recorded $265,000 in revenue from the sale of interest in leasehold land.
Gas processing and other: The gas processing and other segment generated $32,000 in revenue, reflecting a decrease from $72,000 in the previous year.
Despite the decrease in overall revenue, BRN demonstrated strength in its oil and natural gas segment. The segment generated an operating profit of $881,000 before general and administrative expenses. This indicates the company's ability to effectively manage its operations in this sector.
BRN faced challenges in its oil and natural gas segment, as the operating profit before general and administrative expenses decreased by $1,105,000 compared to the same period in the prior year. This decline can be attributed to significant decreases in revenues within the segment.
It is worth noting that BRN received cumulative distributions from the Kukio Resort Land Development Partnerships, resulting in a reduction of the investment balance to zero. The excess distributions received were recorded as equity in income of affiliates. This accounting adjustment impacted the company's financial results for the quarter.
BRN reported a decrease in revenue for the latest quarter, primarily driven by a decline in the oil and natural gas segment. Despite this, the company demonstrated strength in managing its operations within the oil and natural gas sector. The receipt of cumulative distributions from the Kukio Resort Land Development Partnerships and the subsequent reduction of the investment balance to zero were noteworthy events impacting BRN's financial performance.