RED BANK, N.J., Nov. 17, 2016 /PRNewswire/ -- North European
Oil Royalty Trust (NYSE: NRT) reported the net income and results for the fourth quarter of fiscal 2016 which appear below
compared with the fourth quarter of fiscal 2015. Total royalties received include adjustments made by the operating
companies based upon their corrected royalty calculations for prior periods.
|
4th Fiscal Quarter
Ended 10/31/2016
|
4th Fiscal Quarter
Ended 10/31/2015
|
Percentage
Change
|
Total Royalties Received
|
$1,233,794
|
$2,250,082
|
- 45.17%
|
Net Income
|
$1,078,294
|
$2,096,955
|
- 48.58%
|
Distributions per Unit
|
$0.12
|
$0.23
|
- 47.83%
|
The Trust receives nearly all of its royalties under two royalty agreements. The Mobil Agreement, the higher royalty
rate agreement, covers gas sales from the western half of the Oldenburg concession. The OEG Agreement, 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 third calendar
quarters of 2016 and 2015. Further details will be available in the Trust's annual report on Form 10-K which will be
available through the SEC or on the Trust's website, www.neort.com, on or about December 30, 2016.
|
Factors Determining Gas Royalties Payable
|
Mobil Agreement
|
3rd Calendar Quarter
Ended 9/30/2016
|
3rd Calendar Quarter
Ended 9/30/2015
|
Percentage
Change
|
Gas Sales (Bcf1)
|
6.688
|
5.829
|
+ 14.74%
|
Gas Prices2 (Ecents/Kwh3)
|
1.3753
|
2.1662
|
- 36.51%
|
Average Exchange Rate4
|
1.1047
|
1.1301
|
- 2.25%
|
Gas Royalties
|
$1,116,681
|
$1,636,070
|
- 31.75%
|
|
|
|
|
OEG Agreement
|
|
|
|
Gas Sales (Bcf)
|
18.752
|
18.728
|
+ 0.13%
|
Gas Prices (Ecents/Kwh)
|
1.4025
|
2.2187
|
- 36.79%
|
Average Exchange Rate
|
1.1068
|
1.1309
|
- 2.13%
|
Gas Royalties
|
$ 406,887
|
$ 714,479
|
- 43.05%
|
1Billion cubic feet
2Gas prices derived from average for May-July period 3Euro
cents per Kilowatt
hour 4Based
on average exchange rates of cumulative royalty transfers
|
Trust expenses for the fourth quarter of fiscal 2016 increased 0.89%, or $1,382, to $156,049 from $154,667 in comparison to the fourth quarter of fiscal 2015.
The increase was due to higher legal expenses, both domestic and German, relating to the amendments to the Mobil and OEG Royalty
Agreements.
Total royalties received for fiscal 2016 declined in comparison to fiscal 2015 due to lower gas sales, lower gas prices and
lower average exchange rates under both the Mobil and OEG Agreements. Under the Mobil Agreement, gas sales, gas prices and
average exchange rates declined 12.83%, 28.39% and 2.55%, respectively. Under the OEG Agreement, gas sales, gas prices and
average exchange rates declined 12.21%, 29.10% and 2.58%, respectively. The comparison of the relevant periods is shown
below.
|
Fiscal Year
Ended 10/31/2016
|
Fiscal Year
Ended 10/31/2015
|
Percentage
Change
|
Total Royalties Received
|
$ 6,960,961
|
$12,390,575
|
- 43.82%
|
Net Income
|
$ 6,141,141
|
$11,580,673
|
- 46.97%
|
Distributions per Unit
|
$0.67
|
$1.27
|
- 47.24%
|
The 2016 Annual Meeting is scheduled to begin at 10:00 A.M. on February
16, 2017.
The previously declared distribution of 12 cents per unit will be paid on November 30, 2016 to owners of record as of November 18, 2016. For further
information contact John R. Van Kirk, Managing Director, at (732) 741-4008 or via e-mail at
jvankirk@neort.com. The text of the Trust's press
releases along with other pertinent information is available on the Trust's website: www.neort.com.
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SOURCE North European Oil Royalty Trust