RED BANK, N.J., May 15, 2019 /PRNewswire/ -- North European
Oil Royalty Trust (NYSE: NRT) reported the net income for the
second quarter of fiscal 2019 which appears below compared with the
second quarter of fiscal 2018. Total royalty income includes
any adjustments made by the operating companies based upon their
corrected royalty calculations for prior periods as well as any
Mobil sulfur royalties. There were no prior period
adjustments for either of the second quarters of fiscal 2019 or
2018. The Trust received separate sulfur royalty payments
under the Mobil Agreement of $52,728
and $46,458 during the second
quarters of fiscal 2019 and 2018, respectively.
|
2nd Fiscal
Quarter
Ended
4/30/2019
|
2nd Fiscal
Quarter
Ended
4/30/2018
|
Percentage
Change
|
|
Total Royalty
Income
|
$2,235,350
|
$2,054,020
|
+
8.83%
|
|
Net Income
|
$2,001,753
|
$1,820,337
|
+
9.97%
|
|
Distribution per
Unit
|
$0.22
|
$0.19
|
+15.79%
|
The Trust receives all of its royalties under two royalty
agreements. The Mobil Agreement, which is the higher royalty
rate agreement, covers gas sales from the western half of the
Oldenburg concession. The OEG Agreement, which is the lower
royalty rate agreement, covers gas sales from the entire Oldenburg
concession. The factors determining the amount of gas
royalties payable under the two agreements from the preceding
calendar quarter are shown in the table below comparing the first
calendar quarters of 2019 and 2018. Further details will be
available in the Trust's 10-Q filing available through the SEC or
on the Trust's website, www.neort.com, on or about May 30, 2019.
|
Quarterly Gas Data
Providing Basis for Fiscal Quarter Royalties
|
|
Mobil
Agreement
|
1st
Calendar Quarter
Ended
3/31/2019
|
1st
Calendar Quarter
Ended
3/31/2018
|
Percentage
Change
|
|
Gas Sales
(Bcf)1
|
5.195
|
5.193
|
+
0.04%
|
|
Gas
Prices2 (Ecents/Kwh)3
|
2.1250
|
1.8262
|
+ 16.36%
|
|
Average Exchange
Rate4
|
1.1267
|
1.2361
|
-
8.85%
|
|
Gas
Royalties
|
$1,428,786
|
$1,336,404
|
+
6.91%
|
|
OEG
Agreement
|
|
|
|
|
Gas Sales
(Bcf)
|
16.851
|
16.373
|
+
2.92%
|
|
Gas Prices
(Ecents/Kwh)
|
2.1670
|
1.8624
|
+ 16.36%
|
|
Average Exchange
Rate
|
1.1267
|
1.2364
|
-
8.87%
|
|
Gas
Royalties
|
$634,454
|
$548,921
|
+
15.58%
|
|
1 Billion
cubic feet 2 Gas prices
derived from November-January period
3 Euro cents per kilowatt hour
4 Based on average Euro/dollar exchange rates of
cumulative royalty transfers
|
Trust expenses for the second quarter of fiscal 2019 increased
1.69%, or $3,971, to $238,797 from $234,826 in the second quarter of fiscal
2018. This increase in expenses reflects the acceleration of
the payment of domestic accounting costs and an increase in the
NYSE annual fee.
Total royalty income received during the first six months of
fiscal 2019 increased in comparison to fiscal 2018 due to higher
gas prices under both the Mobil and the OEG Agreements. The
comparison of the relevant periods is shown below.
|
Six
Months
Ended
4/30/2019
|
Six
Months
Ended
4/30/2018
|
Percentage
Change
|
|
Total Royalty
Income
|
$4,538,350
|
$3,824,261
|
+ 18.67%
|
|
Net Income
|
$4,039,538
|
$3,315,423
|
+ 21.84%
|
|
Distribution per
Unit
|
$0.44
|
$0.36
|
+ 22.22%
|
The previously declared distribution of 22 cents per unit will be paid on May 29, 2019 to owners of record as of
May 17, 2019. For further
information, contact John R. Van
Kirk, Managing Director, at (732) 741-4008 or via e-mail at
jvankirk@neort.com. The Trust's press releases and other
pertinent information are available on the Trust's website:
www.neort.com.
View original
content:http://www.prnewswire.com/news-releases/north-european-oil-royalty-trust-announces-net-income-for-the-second-quarter-of-fiscal-2019-300850991.html
SOURCE North European Oil Royalty Trust