RED BANK, N.J., Nov. 16, 2017 /PRNewswire/ -- North
European Oil Royalty Trust (NYSE: NRT) reported the net income for the fourth quarter of fiscal 2017 which appears below compared
with the fourth quarter of fiscal 2016. Total royalty income includes adjustments made by the operating companies based upon
their corrected royalty calculations for prior periods.
|
4th Fiscal Quarter
Ended 10/31/2017
|
4th Fiscal Quarter
Ended 10/31/2016
|
Percentage
Change
|
|
Total Royalty Income
|
$2,144,268
|
$1,233,794
|
+ 73.79%
|
|
Net Income
|
$2,010,828
|
$1,078,294
|
+ 86.48%
|
|
Distributions per Unit
|
$0.22
|
$0.12
|
+ 83.33%
|
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 2017 and 2016. 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 28, 2017.
|
Gas Data Providing Basis for Fiscal Quarter Royalties
|
|
Mobil Agreement
|
3rd Calendar Quarter
Ended 9/30/2017
|
3rd Calendar Quarter
Ended 9/30/2016
|
Percentage
Change
|
|
Gas Sales (Bcf1)
|
5.643
|
6.688
|
- 15.63%
|
|
Gas Prices2 (Ecents/Kwh3)
|
1.6197
|
1.3753
|
+ 17.77%
|
|
Average Exchange Rate4
|
1.1806
|
1.1047
|
+ 6.87%
|
|
Gas Royalties
|
$1,228,092
|
$1,166,681
|
+ 5.26%
|
|
|
|
|
|
OEG Agreement
|
|
|
|
|
Gas Sales (Bcf)
|
17.770
|
18.752
|
- 5.24%
|
|
Gas Prices (Ecents/Kwh)
|
1.6517
|
1.4025
|
+ 17.77%
|
|
Average Exchange Rate
|
1.1788
|
1.1068
|
+ 6.51%
|
|
Gas Royalties
|
$ 500,886
|
$ 406,887
|
+ 23.10%
|
|
1Billion cubic feet 2Gas
prices derived from May-July period 3Euro cents per kilowatt
hour
|
|
4Based on average Euro/dollar exchange rates of cumulative
royalty transfers
|
Trust expenses for the fourth quarter of fiscal 2017 decreased 13.50%, or $21,063, to
$134,986 from $156,049 in comparison to the fourth quarter of fiscal
2016. The decrease was due to lower legal expenses, resulting from the completion in 2016 of the amendments to the Mobil
and OEG Royalty Agreements.
The table below shows an estimate of the amount of royalties anticipated to be received in the first quarter of fiscal 2018
based on the actual amount of royalties that were payable to the Trust for the third calendar quarter of 2017. Amounts in
dollars are based on the current exchange rate of 1.160792. Actual royalty income in dollars is valued based on exchange
rates on the day funds are transferred. The November estimate below includes a negative adjustment from the prior quarter
of Euros 109,695.
|
Estimated Combined
Royalties Anticipated in
|
Combined Royalties
in Euros
|
Combined Royalties
in Dollars
|
Dollar Royalties
in Cents per Unit
|
|
November
|
Euros 395,638
|
$459,253
|
$0.0500
|
|
December
|
Euros 505,333
|
$586,587
|
$0.0638
|
|
January
|
Euros 505,333
|
$586,587
|
$0.0638
|
Total royalty income received for fiscal 2017 increased in comparison to fiscal 2016 primarily due to the impact within the
respective year from prior year adjustments. In fiscal 2017, the Trust received positive adjustments increasing royalty
income by $411,884 whereas in fiscal 2016 royalty income was reduced by negative adjustments
totaling ($381,886). Under the Mobil Agreement for fiscal 2017, gas sales, gas prices and
average exchange rates showed percentage changes of -5.90%, +3.35% and -0.41%, respectively, in comparison to fiscal 2016.
Under the OEG Agreement for fiscal 2017, gas sales, gas prices and average exchange rates showed percentage changes of -3.46%,
+2.96% and +0.43%, respectively, in comparison to fiscal 2016. The comparison of the relevant periods is shown below.
|
Fiscal Year
Ended 10/31/2017
|
Fiscal Year
Ended 10/31/2016
|
Percentage
Change
|
|
Total Royalty Income
|
$ 7,762,225
|
$ 6,960,961
|
+ 11.51%
|
|
Net Income
|
$ 7,026,448
|
$ 6,141,141
|
+ 14.42%
|
|
Distributions per Unit
|
$0.76
|
$0.67
|
+ 13.43%
|
The 2017 Annual Meeting is scheduled to begin at 10:00 A.M. on February
20, 2018.
The previously declared distribution of 22 cents per unit will be paid on November 29, 2017 to owners of record as of November 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.
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SOURCE North European Oil Royalty Trust