10-Q - NORTH EUROPEAN OIL ROYALTY TRUST (0000072633) (Filer)

Fri, Feb 28, 4:24 PM (58 days ago)

For the first quarter ended January 31, 2025, North European Oil Royalty Trust (NRT) reported total royalty income of $505,697, a 19% increase from $424,910 in the prior year. Net income surged 59.4% to $285,468, with earnings per unit rising to $0.03 from $0.02. However, distributions per unit decreased to $0.04 from $0.05. The Trust's cash and cash equivalents rose to $1,726,999 from $1,625,343, reflecting strong cash flow management. Trust expenses decreased 7.6% to $233,965, attributed to an off year for biennial royalty examinations. The Trust's asset base increased due to higher royalty receipts. Notably, gas prices stabilized following volatility linked to geopolitical tensions, notably the war in Ukraine. Future royalty income may be impacted by potential operational shutdowns, particularly affecting sour gas production, which constitutes a significant portion of revenue. The Trust's results indicate a positive trend, but uncertainties remain regarding gas production levels and economic conditions. Overall, the Trust remains a passive investment vehicle, with distributions constituting nearly all available funds post-expenses.