North European Oil Royalty Trust Announces Net Income and Results for the First Quarter of Fiscal 2010
February 12 2010 - 11:48AM
PR Newswire (US)
RED BANK, N.J., Feb. 12 /PRNewswire-FirstCall/ -- North European
Oil Royalty Trust (NYSE:NRT) reported the net income and results
for the first quarter of fiscal 2010 which appear below compared
with the first quarter of fiscal 2009. First Fiscal First Fiscal
Quarter Quarter Percentage Ended 1/31/2010 Ended 1/31/2009 Change
--------------- --------------- ------ German Royalties Received
$4,894,409 $10,180,979 - 51.93% Net Income $4,616,291 $9,846,469 -
53.12% Net Income per Unit $0.50 $1.07 - 53.27% Distribution per
Unit $0.50 $1.06 - 52.83% Net income in the first quarter of 2010
was lower than the first quarter 2009 due to the significant
decline in gas prices combined with a smaller decline in gas sales.
Lower prices and sales occurred under both royalty agreements.
While the average value of the Euro relative to the dollar was
higher, it had the least impact of all these factors. The Trust
receives nearly all of its royalties under two royalty agreements.
The Mobil Agreement is the higher royalty rate agreement and covers
gas sales from the western half of the Oldenburg concession. The
OEG Agreement is the lower royalty rate agreement and covers gas
sales from the entire Oldenburg concession. Relevant details are
shown below. First Fiscal First Fiscal Quarter Quarter Percentage
Mobil Agreement Ended 1/31/2010 Ended 1/31/2009 Change
--------------- --------------- --------------- ------ Gas Sales
(Bcf(1)) 11.861 13.699 - 13.42% Gas Prices (Ecents/ Kwh(2)) 1.6491
3.1861 - 48.24% Gas Prices ($/Mcf(3)) $6.88 $12.30 - 44.07% Average
Exchange Rate(4) 1.4493 1.3404 + 8.12% OEG Agreement -------------
Gas Sales (Bcf) 30.616 34.351 - 10.87% Gas Prices (Ecents/Kwh)
1.9151 3.4411 - 44.35% Gas Prices ($/Mcf ) $7.74 $12.93 - 40.14%
Average Exchange Rate 1.4405 1.3382 + 7.64% (1) Billion cubic feet
(2) Euro cents per Kilowatt hour (3) Dollars per thousand cubic
feet (4) Based on average exchange rates of cumulative royalty
transfers For the quarter just ended, Trust interest income
decreased 98.08% to $181 from $9,451 in the first quarter of fiscal
2009, reflecting the continuing low interest rates applicable
during the period along with the reduced funds available for
investment. Trust expenses for the first quarter of fiscal 2010
decreased 19.09% or $65,662 to $278,299 in comparison to $343,961
in the prior year's equivalent period. The decrease in costs
primarily reflects a reduction in Trustee's fees, which are
calculated based on provisions specified in the Trust Agreement.
The previously declared distribution of $0.50 per unit will be paid
on February 24, 2010 to owners of record as of February 12, 2010.
For further information contact John R. Van Kirk, Managing
Director, at (732) 741-4008 or via e-mail at . DATASOURCE: North
European Oil Royalty Trust CONTACT: John R. Van Kirk, Managing
Director of North European Oil Royalty Trust, +1-732-741-4008,
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