RED BANK, N.J., Jan. 30, 2015 /PRNewswire/ -- The Trustees
of North European Oil Royalty Trust (NYSE: NRT) today announced a
quarterly distribution of $0.35 per
unit for the first quarter of fiscal 2015, payable on February 25, 2015 to holders of record on
February 13, 2015. Natural gas
sold during the fourth calendar quarter of 2014 is the primary
source of royalty income on which the February distribution is
based.
John R. Van Kirk, Managing
Director, reported that this year's quarterly distribution of
$0.35 per unit is 35.19%, or
$0.19 per unit, lower than the
distribution of $0.54 per unit for
the first quarter of fiscal 2014. Preliminary data suggests
that the reduction in this quarter's distribution resulted from a
combination of lower gas sales, lower gas prices and lower average
exchange rates. Specific details will be available in the
earnings press release scheduled for publication on or about
February 13, 2015.
Trust royalty payments for each fiscal quarter are based on
actual royalties payable for the preceding calendar quarter.
In the final month of the Trust's fiscal quarter, the operating
companies determine the actual amount of royalties that should have
been paid to the Trust and compare this amount to the amount
actually paid. Any underpayment would be added to the amount
of royalties paid during the final month of the current fiscal
quarter. Any overpayment would be deducted from the amount of
royalties to be paid in the first month of the Trust's next fiscal
quarter. The operating companies may make further adjustments
during the quarter based on the recalculation of royalties payable
for prior periods, and the Trust has no means of predicting such
adjustments.
The table below shows an estimate of the amount of royalties
anticipated to be received in the second quarter of fiscal 2015
based on the actual amount of royalties that were payable to the
Trust for the fourth calendar quarter of 2014. Amounts in
dollars are based on the current exchange rate of 1.1309.
Actual royalty income in dollars is valued based on exchange rates
on the days funds are transferred. The February estimate
below includes adjustments totaling Euros
211,881 reflecting a negative adjustment of Euros 492,790 for calendar 2013 along with
positive adjustments from the prior quarter of Euros 195,767 and sulfur royalties in the amount
of Euros 85,142. The negative
adjustment for calendar 2013, which (as disclosed in the
October 30, 2014 press release) the
Trust anticipated would be applied against royalties payable to the
Trust in the first fiscal quarter, still has not been
applied.
Estimated
Combined
Royalties Anticipated
in
|
Combined
Royalties
In Euros
|
Combined
Royalties
In Dollars
|
Dollar
Royalties
In Cents per
Unit
|
February
|
Euros
855,973
|
$ 968,020
|
$0.105
|
March
|
Euros
1,067,854
|
$1,207,636
|
$0.131
|
April
|
Euros
1,067,854
|
$1,207,636
|
$0.131
|
|
|
|
|
|
The cumulative 12-month distribution, which includes this
February distribution and the three prior quarterly distributions,
is $1.76 per unit. This
12-month cumulative distribution is 20% or $0.44 per unit lower than the prior 12-month
distribution of $2.20 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, e-mail:
jvankirk@neort.com. The text of the Trust's press releases
along with other pertinent information is available at the Trust's
website: www.neort.com.
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SOURCE North European Oil Royalty Trust