May 15, 2018   SOURCE: PR NewsWire

North European Oil Royalty Trust Announces Net Income For The Second Quarter Of Fiscal 2018

North European Oil Royalty Trust Announces Net Income For The Second Quarter Of Fiscal 2018

RED BANK, N.J., May 15, 2018 /PRNewswire/ -- North European Oil Royalty Trust (NYSE: NRT) reported the net income for the second quarter of fiscal 2018 which appears below compared with the second quarter of fiscal 2017. Total royalty income includes any adjustments made by the operating companies based upon their corrected royalty calculations for prior periods as well as any Mobil sulfur royalties. There were no prior period adjustments for either of the second quarters of fiscal 2018 or 2017. The Trust received separate sulfur royalty payments under the Mobil Agreement of $46,458 and $42,984 during the second quarters of fiscal 2018 and 2017, respectively.

                  2nd Fiscal Quarter     2nd Fiscal Quarter      Percentage

                         Ended 4/30/2018        Ended 4/30/2017    Change
                       -----------------      -----------------    ------

    Total
     Royalty
     Income                   $2,054,020              $1,918,830            + 7.05%

    Net Income                $1,820,337              $1,699,909            + 7.08%

     Distribution
     per Unit                      $0.19                   $0.19            + 0.00%
     ------------                  -----                   -----             ------

The Trust receives 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 first calendar quarters of 2018 and 2017. 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 May 30, 2018.

                             Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties
                             ---------------------------------------------------------------

                                      1st Calendar Quarter            1st Calendar Quarter      Percentage

             Mobil Agreement                   Ended 3/31/2018                 Ended 3/31/2017    Change
             ---------------                   ---------------                 ---------------    ------

    Gas Sales (Bcf)(1)                                   5.193                            5.934             -  12.49%

    Gas Prices(2)
     (Ecents/Kwh)(3)                                    1.8262                           1.7434             +   4.75%

    Average Exchange
     Rate4                                              1.2361                           1.0625              + 16.34%

    Gas Royalties                                   $1,336,404                       $1,255,366             +   6.46%
                                                    ----------



              OEG Agreement
              -------------

    Gas Sales (Bcf)                                     16.373                           18.885             -  13.30%

    Gas Prices
     (Ecents/Kwh)                                       1.8624                           1.7779            +    4.75%

    Average Exchange
     Rate                                               1.2364                           1.0630             +  16.31%

    Gas Royalties                                     $548,921                         $530,792            +    3.42%
    -------------                                     --------                         --------             ---------


    (1)Billion cubic feet
     (2)Gas prices derived from
     November-January period
      (3)Euro cents per kilowatt
      hour     4Based on average
     Euro/dollar exchange rates
     of cumulative royalty
     transfers

Trust expenses for the second quarter of fiscal 2018 increased 6.88%, or $15,119, to $234,826 from $219,707 for the second quarter of fiscal 2017. This increase in expenses reflects the inclusion of legal costs resulting from the review by the Trust's German accountants of the new pricing method set forth in the amendments to the royalty agreements and an increase in the NYSE annual fee.

Total royalty income received during the first six months of fiscal 2018 increased in comparison to fiscal 2017 due to higher gas prices and higher average exchange rates under both the Mobil and the OEG Agreements. The comparison of the relevant periods is shown below. 

                     Six Months         Six Months          Percentage

                        Ended 4/30/2018    Ended 4/30/2017    Change
                        ---------------    ---------------    ------

    Total Royalty
     Income                  $3,824,261          $3,643,516            +  4.96%

    Net Income               $3,315,423          $3,174,926            +  4.43%

    Distribution per
     Unit                         $0.36               $0.34            +  5.88%
    ----------------              -----               -----             -------

The previously declared distribution of 19 cents per unit will be paid on May 30, 2018 to owners of record as of May 18, 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