KEENE, N.H., Aug. 14, 2020 /PRNewswire/ -- North European
Oil Royalty Trust (NYSE: NRT) reported the net income for the third
quarter of fiscal 2020 which appears below compared with the third
quarter of fiscal 2019. 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. As detailed in the July 31, 2020 distribution press release, total
royalty income for the third quarter of fiscal 2020 declined from
the third quarter of fiscal 2019. This decline resulted from
the combined effects of lower gas prices and lower gas sales both
of which are likely attributable to the impact of COVID-19 and the
glut of gas on the European market. There were only minor
negative adjustments of ($10,913) and
($13,020) impacting royalties during
the third quarters of fiscal 2020 and 2019, respectively.
Sulfur royalties totaling $721 were
received in the third quarter of fiscal 2020 but this amount
represented corrections from fiscal 2018. There were no
royalties received under the Mobil Sulfur Agreement in the third
quarter of fiscal 2019.
|
3rd Fiscal
Quarter
Ended
7/31/2020
|
3rd Fiscal
Quarter
Ended
7/31/2019
|
Percentage
Change
|
Total Royalty
Income
|
$1,399,614
|
$2,146,227
|
- 34.79%
|
Net Income
|
$1,278,075
|
$2,022,464
|
- 36.81%
|
Distributions per
Unit
|
$0.11
|
$0.22
|
- 50.00%
|
Trust expenses for the third quarter of fiscal 2020 decreased
4.58%, or $5,848, to $121,770 in comparison to $127,618 for the third quarter of fiscal
2019. This decrease in expenses reflects the reduction in
Trustees' fees as specified in the Trust Agreement.
Total royalty income received during the first nine months of
fiscal 2020 decreased in comparison to fiscal 2019 due to a
combination of lower gas prices, lower gas sales and lower average
exchange rates under both the Mobil and OEG Agreements during the
first nine months of fiscal 2020. The comparison of the
relevant periods is shown below.
|
Nine
Months
Ended
7/31/2020
|
Nine
Months
Ended
7/31/2019
|
Percentage
Change
|
Total Royalty
Income
|
$3,701,403
|
$6,684,577
|
- 44.63%
|
Net Income
|
$3,067,714
|
$6,062,002
|
- 49.39%
|
Distributions per
Unit
|
$0.30
|
$0.66
|
- 54.55%
|
The previously declared distribution of 11 cents per unit will be paid on August 26, 2020 to owners of record as of
August 14, 2020. Comprehensive
details will be available in the Trust's 10-Q filing available
through the SEC or the Trust's website, www.neort.com, on or about
August 28, 2020. 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.
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SOURCE North European Oil Royalty Trust