PR Newswire
RED BANK, N.J., Feb. 15, 2018
RED BANK, N.J., Feb. 15, 2018 /PRNewswire/ -- North European Oil Royalty Trust (NYSE:
NRT) reported the net income for the first quarter of fiscal 2018 which appears in the table below compared to net income for the
first quarter of fiscal 2017. Total royalty income includes adjustments made by the operating companies to reflect their
corrected royalty calculations for prior periods as well as the inclusion or absence of Mobil sulfur royalties. The total
adjustments for the first quarter of fiscal 2018 decreased total royalty income by $129,582.
By comparison, in the first quarter of fiscal 2017, total adjustments increased total royalty income by $23,796.
|
1st Fiscal Quarter
Ended 1/31/2018
|
1st Fiscal Quarter
Ended 1/31/2017
|
Percentage
Change
|
|
Total Royalty Income
|
$1,770,241
|
$1,724,686
|
+ 2.64%
|
|
Net Income
|
$1,495,086
|
$1,475,017
|
+ 1.36%
|
|
Distributions per Unit
|
$0.17
|
$0.15
|
+ 13.33%
|
The Trust receives nearly all of its royalties under two royalty agreements. The Mobil Agreement, which is the higher
royalty rate agreement, covers gas sales from the western half of the Oldenburg concession. The OEG Agreement, which is 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 2017 and 2016. 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 or about
February 27, 2018.
|
Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties
|
|
Mobil Agreement
|
4th Calendar Quarter
Ended 12/31/2017
|
4th Calendar Quarter
Ended 12/31/2016
|
Percentage
Change
|
|
Gas Sales (Bcf1)
|
5.660
|
6.489
|
- 12.78%
|
|
Gas Prices2 (Ecents/kWh3)
|
1.6593
|
1.4789
|
+ 12.20%
|
|
Average Exchange Rate4
|
1.1965
|
1.0582
|
+ 13.07%
|
|
Gas Royalties
|
$1,278,038
|
$1,164,964
|
+ 9.71%
|
|
|
|
|
|
OEG Agreement
|
|
|
|
|
Gas Sales (Bcf)
|
18.150
|
20.060
|
- 9.52%
|
|
Gas Prices (Ecents/kWh)
|
1.6921
|
1.5081
|
+ 12.20%
|
|
Average Exchange Rate
|
1.2008
|
1.0590
|
+ 13.39%
|
|
Gas Royalties
|
$540,669
|
$466,168
|
+ 15.98%
|
|
1 Billion cubic feet 2 Gas prices derived
from August-October period 3 Euro cents per kilowatt hour
4 Based on average Euro/dollar exchange rates of cumulative
royalty transfers
|
Trust expenses for the first quarter of fiscal 2018 increased 10.45%, or $26,167, to
$276,626 from $250,459 for the first quarter of fiscal 2017.
The increase in expenses reflects costs relating to the biennial examination of the royalty statements by the Trust's German
accountants, increased Trustee fees as specified in the Trust Agreement, and the timing of mailing costs associated with the
annual meeting.
The previously declared distribution of 17 cents per unit will be paid on February 28, 2018 to owners of record as of February 16, 2018. 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
