North European Oil Royalty Trust Announces Net Income For The Second Quarter Of Fiscal 2019

RED BANK, N.J., May 15, 2019 /PRNewswire/ -- North European Oil Royalty Trust (NYSE: NRT) reported the net income for the second quarter of fiscal 2019 which appears below compared with the second quarter of fiscal 2018. 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 2019 or 2018. The Trust received separate sulfur royalty payments under the Mobil Agreement of $52,728 and $46,458 during the second quarters of fiscal 2019 and 2018, respectively.

                     
       2nd Fiscal Quarter  
       2nd Fiscal Quarter   
       Percentage

                       
         Ended 4/30/2019   
         Ended 4/30/2018    
       Change



        Total
        Royalty
        Income                    $2,235,350               $2,054,020              +  8.83%


        Net
        Income                    $2,001,753               $1,820,337              +  9.97%


        Distribution
        per
        Unit                           $0.22                    $0.19               +15.79%

    ---

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 2019 and 2018. 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, 2019.

                           
             Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties

                                                              ---

                                                  1st Calendar Quarter              1st Calendar Quarter  
     Percentage

                     Mobil Agreement        
              Ended 3/31/2019        
              Ended 3/31/2018  
     Change

               ---

        Gas Sales (Bcf)(1)                                       5.195                              5.193              +   0.04%


        Gas Prices(2)
         (Ecents/Kwh)(3)                                        2.1250                             1.8262               + 16.36%


        Average Exchange
         Rate4                                                  1.1267                             1.2361              -   8.85%


        Gas Royalties                                       $1,428,786                         $1,336,404              +   6.91%





                      OEG Agreement

               ---

        Gas Sales (Bcf)                                         16.851                             16.373              +   2.92%


        Gas Prices
         (Ecents/Kwh)                                           2.1670                             1.8624               + 16.36%


        Average Exchange
         Rate                                                   1.1267                             1.2364             -    8.87%


        Gas Royalties                                         $634,454                           $548,921              +  15.58%

    ---

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

    ---

Trust expenses for the second quarter of fiscal 2019 increased 1.69%, or $3,971, to $238,797 from $234,826 in the second quarter of fiscal 2018. This increase in expenses reflects the acceleration of the payment of domestic accounting costs and an increase in the NYSE annual fee.

Total royalty income received during the first six months of fiscal 2019 increased in comparison to fiscal 2018 due to higher gas prices under both the Mobil and the OEG Agreements. The comparison of the relevant periods is shown below.

                      
       Six Months    
       Six Months     
       Percentage

                      
     Ended 4/30/2019 
     Ended 4/30/2018    
       Change



        Total Royalty
         Income              $4,538,350         $3,824,261             + 18.67%


        Net Income           $4,039,538         $3,315,423             + 21.84%


        Distribution
         per Unit                 $0.44              $0.36             + 22.22%

    ---

The previously declared distribution of 22 cents per unit will be paid on May 29, 2019 to owners of record as of May 17, 2019. 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