North European Oil Royalty Trust reported net income of $4.6 million, or $0.50 per unit, in the second quarter of fiscal 2010, which ended 4/30/2010. North European Oil Royalty Trust earned net income of $9.1 million, or $0.99 per unit, in the same quarter in fiscal 2009.
North European Oil Royalty Trust said that the sharp decline in net income was due to a much lower realized price for natural gas, and lower sales volumes.
North European Oil Royalty Trust receives royalty payments from agreements covering producing natural gas properties in the Oldenburg concession in Germany. The company has two concessions. The Mobil agreement covers properties in the western part of the Oldenburg, while the OEG agreement covers properties located in both the western and eastern parts of the Oldenburg.
North European Oil Royalty Trust also declared a quarterly distribution of $0.50 per unit during the second fiscal quarter of 2010. The distribution is payable 5/26/2010 to unit holders of record on 5/14/2010. In the same quarter last year, North European Oil Royalty Trust paid a distribution of $0.99.
North European Oil Royalty Trust is organized as a grantor trust for legal purposes, and owners of the trust are considered partial owners of the royalty rights owned by the trust.