May 15, 2020   SOURCE: PR NewsWire

North European Oil Royalty Trust Announces Net Income For The Second Quarter Of Fiscal 2020

KEENE, N.H., May 15, 2020 /PRNewswire/ -- North European Oil Royalty Trust (NYSE: NRT) reported the net income for the second quarter of fiscal 2020 which appears in the table below compared with the net income for the second quarter of fiscal 2019. 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. During the second quarter of fiscal 2020, total royalty income was reduced by prior period adjustments totaling $137,944. There was no prior period adjustment for the second quarter of fiscal 2019. The Trust received separate sulfur royalty payments under the Mobil Agreement of $31,105 and $52,728 during the second quarters of fiscal 2020 and 2019, respectively.

                      
       2nd Fiscal Quarter 
       2nd Fiscal Quarter  
       Percentage

                        
        Ended 4/30/2020   
        Ended 4/30/2019    
       Change



         Total
         Royalty
         Income                   $1,275,824              $2,235,350              - 42.93%


        Net
         Income                   $1,041,902              $2,001,753              - 47.95%


         Distribution
         per
         Unit                          $0.11                   $0.22              - 50.00%

    ---

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 2020 and 2019. 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 28, 2020.

                           
             Quarterly Gas Data Providing Basis for Fiscal Quarter Royalties

                                                              ---

                                                  1st Calendar Quarter              1st Calendar Quarter  
       Percentage

                     Mobil Agreement        
              Ended 3/31/2020        
              Ended 3/31/2019    
       Change

    ---

        Gas Sales (Bcf)(1)                                       4.624                              5.195             - 10.99%


        Gas Prices(2)
         (Ecents/Kwh)(3)                                        1.6349                             2.1250             - 23.06%


        Average Exchange
         Rate4                                                  1.0943                             1.1267            -   2.88%


        Gas Royalties                                         $946,174                         $1,428,786             - 33.78%





                     OEG Agreement

    ---

        Gas Sales (Bcf)                                         15.266                             16.851            -   9.41%


        Gas Prices
         (Ecents/Kwh)                                           1.6672                             2.1670             - 23.06%


        Average Exchange
         Rate                                                   1.0955                             1.1267            -   2.77%


        Gas Royalties                                         $393,001                           $634,454             - 38.06%

    ---



              
               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 2020 decreased 1.80%, or $4,297, to $234,500 from $238,797 in the second quarter of fiscal 2019. This decrease in expenses reflects the reduction in Trustee fees as specified in the Trust Agreement and reduced office expenses related to the conversion to a virtual office.

Total royalty income received during the first six months of fiscal 2020 decreased in comparison to fiscal 2019 due to lower gas prices, lower gas sales and lower 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 4/30/2020 
     Ended 4/30/2019    
       Change



        Total Royalty
         Income              $2,301,789         $4,538,350             - 49.28%


        Net Income           $1,789,639         $4,039,538             - 55.70%


        Distribution
         per Unit                 $0.19              $0.44             - 56.82%

    ---

The previously declared distribution of 11 cents per unit will be paid on May 27, 2020 to owners of record as of May 15, 2020. 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.

View original content:http://www.prnewswire.com/news-releases/north-european-oil-royalty-trust-announces-net-income-for-the-second-quarter-of-fiscal-2020-301060115.html

SOURCE North European Oil Royalty Trust