North European Oil Royalty Trust announces there will be no distribution in Q4

The Trustees of North European Oil Royalty Trus announced that, consistent with previous disclosures, there will not be a quarterly distribution for the Q4. This compares to a distribution of 74c per unit for the Q4 of FY22. ExxonMobil’s scheduled shutdown of the Grossenkneten desulphurization plant for the first 18 days of this quarter contributed to a decline in gas sales volumes. This reduction and the continued decline in the German Border Import gas Price, as well as negative adjustments from the current and prior quarters, resulted in the absence of any royalty payments to the Trust for the quarter ending October 31. The residual balance of these adjustments will have an impact on the Q1 of FY24. However, cash distributions in any fiscal quarter beyond the Q4 cannot be determined with any certainty at this time. The volatility in gas prices, coupled with the pricing system specified in the Trust’s agreements with the operating companies, contributed to the uneven distributions in the most recent quarters. Distributions are based on actual royalty income received less incurred and anticipated expenses. Additional details will be included in the earnings press release scheduled for publication on or about November 17.