PR Newswire
RED BANK, N.J., Feb. 10, 2017
RED BANK, N.J., Feb. 10, 2017 /PRNewswire/ -- North European Oil Royalty Trust
(NYSE: NRT) reported the net income and results for the first quarter of fiscal 2017 which appear below compared with the first
quarter of fiscal 2016. Total royalty income reflects the inclusion of adjustments made by the operating companies based
upon their corrected royalty calculations for prior periods as well as the inclusion of Mobil sulfur royalties. The total
adjustments for the first quarter of fiscal 2017 increased total royalty income by $23,796.
By comparison, in the first quarter of fiscal 2016 total royalty income was reduced by $560,902.
|
1st Fiscal Quarter
Ended 1/31/2017
|
1st Fiscal Quarter
Ended 1/31/2016
|
Percentage
Change
|
|
Total Royalty Income
|
$1,724,686
|
$1,832,471
|
- 5.88%
|
|
Net Income
|
$1,475,017
|
$1,573,687
|
- 6.27%
|
|
Distributions per Unit
|
$0.15
|
$0.16
|
- 6.25%
|
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 fourth calendar
quarters of 2016 and 2015. 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 February 27, 2017.
|
Factors Determining Gas Royalties Payable
|
|
Mobil Agreement
|
4th Calendar Quarter
Ended 12/31/2016
|
4th Calendar Quarter
Ended 12/31/2015
|
Percentage
Change
|
|
Gas Sales (Bcf1)
|
6.489
|
6.604
|
- 1.74%
|
|
Gas Prices2 (Ecents/kWh3)
|
1.4789
|
1.8649
|
- 20.70%
|
|
Average Exchange Rate4
|
1.0582
|
1.0881
|
- 2.75%
|
|
Gas Royalties
|
$1,164,964
|
$1,538,701
|
- 24.29%
|
|
|
|
|
|
OEG Agreement
|
|
|
|
|
Gas Sales (Bcf)
|
20.060
|
20.507
|
- 2.18%
|
|
Gas Prices (Ecents/kWh)
|
1.5081
|
1.9803
|
- 23.84%
|
|
Average Exchange Rate
|
1.0590
|
1.0874
|
- 2.61%
|
|
Gas Royalties
|
$466,168
|
$668,112
|
- 30.23%
|
|
1 Billion cubic feet
2 Gas prices derived from August-October period
3 Euro cents per kilowatt hour
4 Based on average exchange rates of cumulative
royalty transfers
|
Trust expenses for the first quarter of fiscal 2017 decreased 3.63% or $9,425 to $250,459 in comparison to $259,884 in the first quarter of fiscal 2016. The
reduction in expenses reflects the absence of current costs relating to the biennial examination of the royalty statements by the
Trust's German accountants because 2017 is an alternate year. Additionally, the decrease in the amount of Trustee fees as
specified in the Trust Agreement contributed to lower expenses.
The previously declared distribution of 15 cents per unit will be paid on February 22, 2017 to owners of record as of February 17, 2017. 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/north-european-oil-royalty-trust-announces-net-income-and-results-for-the-first-quarter-of-fiscal-2017-300405683.html
SOURCE North European Oil Royalty Trust
