North European Oil Royalty Trust (NRT) Q3 2024 earnings summary

Executive summary

• Passive royalty structure receives income from German gas, sulfur and oil sales, pays expenses and distributes substantially all remaining funds quarterly; no extraction or capital investment role.

• The Oldenburg concession generated all royalties; natural gas accounted for 96.31% of cumulative royalty income in fiscal 2024.

Financial highlights

• Q3 fiscal 2024 royalty income was $2.457M, down 1.3% YoY; net income was $2.318M, up 1.2%; distribution was $0.21 per unit, unchanged.

• First nine months royalty income was $5.115M, down 76.8% YoY; net income was $4.531M, down 78.8%; distributions were $0.46 per unit, down 79.6%.

• Cash and cash equivalents were $3.029M at July 31, 2024, versus $795,201 at October 31, 2023.

Outlook and guidance

• EMPG had no new gas well drilling scheduled through 2024; royalty assets may deplete faster without additional development projects.

• German consultant expects the remaining Grossenkneten desulfurization unit to handle sour-gas throughput; operating expenses may decline, but a future shutdown could materially affect royalty income.