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

Rhea-AI Summary

North European Oil Royalty Trust (NRT) reported significant declines in key financial metrics for the fourth quarter and fiscal year ending October 31, 2020. Total royalty income decreased by 79% year-over-year to $348,614 in Q4, while net income fell 85.58% to $218,649. For the fiscal year, total royalty income was $4,050,017, down 51.47%, and net income dropped 56.63% to $3,286,363. COVID-19 significantly impacted revenue, with the Trust facing negative adjustments totaling $653,916 for the year.

Positive

• The distribution per unit for Q4 is set at $0.02, with total distributions for the fiscal year at $0.32.

Negative

• Total royalty income decreased by 79% in Q4 and 51.47% for the fiscal year.
• Net income declined by 85.58% in Q4 and 56.63% for the fiscal year.
• Negative adjustments of $653,916 in royalty income were recorded for fiscal 2020.

KEENE, N.H., Nov. 13, 2020 /PRNewswire/ -- North European Oil Royalty Trust (NYSE: NRT) reported the net income for the fourth quarter of fiscal 2020 which appears below compared with the fourth quarter of fiscal 2019.  Total royalty income for the fourth quarter of fiscal 2020 includes negative adjustments made by the operating companies based upon their corrected royalty calculations for the preceding quarter, -$443,014, and for the 2019 fiscal year, -$254,369.

	4th Fiscal Quarter Ended 10/31/2020	4th Fiscal Quarter Ended 10/31/2019	Percentage Change
Total Royalty Income	$348,614	$1,660,135	-79.00%
Net Income	$218,649	$1,516,063	-85.58%
Distributions per Unit	$0.02	$0.16	-87.50%

The decline in total royalty income received for fiscal 2020 resulted to a large extent from the impact of COVID-19 and the associated economic disruption.  The Trust received negative adjustments in fiscal 2020 which decreased royalty income by $653,916, whereas in fiscal 2019 the Trust received positive adjustments which increased royalty income by $225,450.  Under the Mobil Agreement for fiscal 2020, gas prices, gas sales and average exchange rates showed percentage changes of -30.10%, -15.87% and -0.73%, respectively, in comparison to fiscal 2019.  Under the OEG Agreement for fiscal 2020, gas prices, gas sales and average exchange rates showed percentage changes of -29.91%, -16.55% and -0.99%, respectively, in comparison to fiscal 2019.  The comparison of the relevant periods is shown below.

	Fiscal Year   Ended 10/31/2020	Fiscal Year Ended 10/31/2019	Percentage Change
Total Royalty Income	$4,050,017	$8,344,712	-51.47%
Net Income	$3,286,363	$7,578,065	-56.63%
Distributions per Unit	$0.32	$0.82	-60.98%

The 2020 Annual Meeting is scheduled to begin at 11:00 a.m. on February 17, 2021.  The first part of the meeting will consist of an informal question and answer period held via Zoom.  The second part, which will constitute the formal annual meeting, will be for purposes of voting on the proposals presented in the proxy statement.  Further details will be provided in the Notice of Annual Meeting of Unit Owners which is being mailed in early January.

The previously declared distribution of 2 cents per unit will be paid on November 25, 2020 to owners of record as of November 13, 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, along with other pertinent information, are available on the Trust's website: www.neort.com.

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SOURCE North European Oil Royalty Trust

FAQ

What were the net income results for North European Oil Royalty Trust in Q4 2020?

NRT reported a net income of $218,649 for Q4 2020, an 85.58% decline from the previous year.

What was the total royalty income for NRT for the fiscal year ended October 31, 2020?

Total royalty income for NRT for the fiscal year ended October 31, 2020, was $4,050,017, down 51.47% from the previous fiscal year.

How did COVID-19 impact NRT's financial results?

COVID-19 significantly disrupted operations, leading to negative adjustments of $653,916 in royalty income for fiscal 2020.

What is NRT's distribution per unit for Q4 2020?

The distribution per unit for Q4 2020 is set at $0.02.

When is the annual meeting for North European Oil Royalty Trust?

The annual meeting is scheduled for 11:00 a.m. on February 17, 2021.