North European Oil Royalty Trust Announces The Distribution For The Third Quarter Of Fiscal 2019

RED BANK, N.J., July 31, 2019 /PRNewswire/ -- The Trustees of North European Oil Royalty Trust (NYSE: NRT) announced today a quarterly distribution of $0.22 per unit for the third quarter of fiscal 2019, payable on August 28, 2019 to holders of record on August 16, 2019.  Natural gas sold during the second calendar quarter of 2019 is the primary source of royalty income on which the August 2019 distribution is based.  

John R. Van Kirk, Managing Director, reported that this year's quarterly distribution of $0.22 per unit is 15.79%, or $0.03 per unit, higher than the distribution of $0.19 per unit for the third quarter of fiscal 2018. Additional details will be available in the earnings press release scheduled for publication on or about August 15, 2019.   

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 second calendar quarters of 2019 and 2018.  There was no reduction in throughput at the Grossenkneten desulfurization plant during the quarter just ended.  In contrast, during the prior year's equivalent quarter, there was a significant reduction in throughput due to unanticipated maintenance requirements at Grossenkneten.  Further details will be included in the Trust's 10-Q, which will be available through the SEC or on the Trust's website, www.neort.com, on or about August 29, 2019.

The table below shows an estimate of the amount of royalties anticipated to be received in the fourth quarter of fiscal 2019 based on the actual amount of royalties that were payable to the Trust for the second calendar quarter of 2019.  Amounts in dollars are based on the current exchange rate of 1.115126.   Actual royalty income in dollars is valued based on exchange rates on the day funds are transferred.  The August estimate below includes a negative adjustment from the prior quarter of Euros 295,369.  This adjustment reflects the inclusion of funds that would have been received under the Mobil sulfur royalty agreement for the second quarter of 2019.  Distributions are based on royalty income received less expenses incurred. 

The cumulative 12-month distribution, which includes the August 2019 distribution and the three prior quarterly distributions, is $0.81 per unit.  This 12-month cumulative distribution is 5.19%, or $0.04 per unit, higher than the prior 12-month distribution of $0.77 per unit.  The Trust makes quarterly distributions to unit owners during the months of February, May, August and November.

Contact – John R. Van Kirk, Managing Director, telephone: (732) 741-4008, email: [email protected].  The Trust's press releases and other pertinent information are available on the Trust's website: www.neort.com.

SOURCE North European Oil Royalty Trust