North European Oil Royalty Trust reported net income of $3.5 million, or $0.38 per unit, for its fourth fiscal quarter ending 10/31/2009. During the same quarter last year, the company earned $9.4 million, or $1.02 per unit.

The company paid a distribution of $0.38 per unit in the quarter. Management of the North European Oil Royalty Trust blamed the sharp year over year fall in gas prices for the lower income.

The North European Oil Royalty Trust is a trust set up to receive royalties from hydrocarbon producing areas in Germany. ExxonMobil Corporation (XOM) and Royal Dutch/Shell (RDS) are the operators of the producing wells in the area.

North European Oil Royalty Trust also receives revenues from the sales of sulphur from a natural gas desulfurization plant located in the area.

The North European Oil Royalty Trust distributes almost all its royalties to its unit holders, but since these royalties vary with the price received, the distributions can be volatile. In fiscal 2009, the company paid $3.01 to unit holders, compared to $3.66 in fiscal 2009. The current yield is 9.58%.