Attached files
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Exhibit 99
PR NEWSWIRE
NORTH EUROPEAN OIL ROYALTY TRUST ANNOUNCES
NET INCOME AND RESULTS FOR THE SECOND QUARTER OF FISCAL 2016
Red Bank, N.J. May 13, 2016 -- North European Oil Royalty Trust (NYSE-NRT)
reported the net income and results for the second quarter of fiscal 2016
which appear below compared with the second quarter of fiscal 2015. The
figures for "Total Royalties Received" shown in the table below reflect the
various adjustments, both positive and negative, that occurred during the
quarter. The total adjustments for the second quarters of fiscal 2016 and
2015 reduced total royalties received by $96,808 and $340,524, respectively.
2nd Fiscal Qtr. 2nd Fiscal Qtr. Percentage
Ended 4/30/2016 Ended 4/30/2015 Change
--------------- --------------- ----------
Total Royalties Received $2,333,670 $3,238,135 - 27.93%
Net Income $2,100,364 $3,074,495 - 31.68%
Distributions Per Unit $0.24 $0.33 - 27.27%
The Trust receives all of its royalties under two royalty agreements. The
Mobil Agreement, the higher royalty rate agreement, covers gas sales from the
western half of the Oldenburg concession. The OEG Agreement, the lower
royalty rate agreement, covers gas sales from the entire Oldenburg concession.
The decline in total royalties received in the second quarter of fiscal 2016
as compared to the second quarter of fiscal 2015 resulted primarily from the
reduction in gas royalties due to lower gas prices and lower gas sales.
Additionally, the negative impact of the decline in gas royalties in the first
calendar quarter of fiscal 2016 was greater and outweighed the negative impact
of the adjustment in first calendar quarter of fiscal 2015. 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 27, 2016.
Factors Determining Gas Royalties Payable
-------------------------------------------------
1st Calendar Qtr. 1st Calendar Qtr. Percentage
Ended 3/31/2016 Ended 3/31/2015 Change
--------------- --------------- ----------
Mobil Agreement
---------------
Gas Sales (Bcf)(1) 6.834 7.642 - 10.57%
Gas Prices (Ecents/Kwh)(2) 1.5622 2.3212 - 32.70%
Average Exchange Rate (3) $1.1173 $1.0754 + 3.90%
Gas Royalties $1,369,315 $2,198,548 - 37.72%
OEG Agreement
-------------
Gas Sales (Bcf) 20.434 23.137 - 11.68%
Gas Prices (Ecents/Kwh) 1.5282 2.4128 - 36.66%
Average Exchange Rate $1.1171 $1.0830 + 3.15%
Gas Royalties $ 487,877 $ 969,655 - 49.69%
(1) Billion cubic feet (2) Euro cents per Kilowatt hour
(3) Based on average exchange rates of cumulative royalty transfers
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Trust expenses for the second quarter of fiscal 2016 increased 41.67%, or
$69,122, to $235,001 from $165,879 in the second quarter of fiscal 2015 due
to increased legal costs associated with the biennial accounting examination
in Germany and the timing of payments for year-end mailing costs and the NYSE
fee.
The decrease in total royalties received during the first six months of
fiscal 2016 (as shown in the table below) was due to lower gas prices, lower
gas sales and lower average exchange rates under both the Mobil and the OEG
Agreements.
Six Months Six Months Percentage
Ended 4/30/2016 Ended 4/30/2015 Change
--------------- --------------- ----------
Total Royalties Received $ 4,166,141 $ 6,680,848 - 37.64%
Net Income $ 3,674,051 $ 6,171,411 - 40.47%
Distributions per Unit $0.40 $0.68 - 41.18%
The previously declared distribution of 24 cents per unit will be paid on
May 25, 2016 to owners of record as of May 13, 2016. For further information
contact John R. Van Kirk, Managing Director, at (732) 741-4008 or via e-mail
at jvankirk@neort.com. The text of the Trust's press releases along with
other pertinent information is available on the Trust's website:
www.neort.com.
