0000072633-11-000026.txt : 20111115 0000072633-11-000026.hdr.sgml : 20111115 20111115144226 ACCESSION NUMBER: 0000072633-11-000026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20111031 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20111115 DATE AS OF CHANGE: 20111115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTH EUROPEAN OIL ROYALTY TRUST CENTRAL INDEX KEY: 0000072633 STANDARD INDUSTRIAL CLASSIFICATION: OIL ROYALTY TRADERS [6792] IRS NUMBER: 222084119 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08245 FILM NUMBER: 111206871 BUSINESS ADDRESS: STREET 1: P O BOX 456 STREET 2: 43 WEST FRONT STREET SUITE 19-A CITY: RED BANK STATE: NJ ZIP: 07701 BUSINESS PHONE: 7327414008 MAIL ADDRESS: STREET 1: P O BOX 456 STREET 2: 43 WEST FRONT STREET SUITE 19-A CITY: RED BANK STATE: NJ ZIP: 07701 8-K 1 ek111511.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): November 15, 2011 ------------------- NORTH EUROPEAN OIL ROYALTY TRUST ------------------------------------------------------ (Exact name of Registrant as specified in its charter) Commission File No. 1-8245 Delaware 22-2084119 ----------------------- ----------------------- (State of organization) (IRS Employer I.D. No.) Suite 19A, 43 West Front Street, Red Bank, N.J. 07701 ---------------------------------------------------------------- (Address of principal executive offices) 732-741-4008 --------------------------------------------------- (Registrant's telephone number including area code) Not Applicable ------------------------------------------------------------ Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) -2- Item 2.02. Results of Operations and Financial Condition. ---------------------------------------------- On November 15, 2011 North European Oil Royalty Trust issued a press release via PR Newswire announcing the Trust's net income and results for the fourth quarter of fiscal 2011. Furnished herewith is a copy of the press release, which is incorporated by reference herein. Item 9.01. Financial Statements and Exhibits. ---------------------------------- (c) Exhibits The following exhibit is furnished herewith: Exhibit 99. A press release dated November 15, 2011 and disseminated through PR Newswire announcing the net income and results of North European Oil Royalty Trust for the fourth quarter of fiscal 2011. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NORTH EUROPEAN OIL ROYALTY TRUST -------------------------------- (Registrant) By: /s/ John R. Van Kirk ------------------------ John R. Van Kirk Managing Director Dated: November 15, 2011 EX-99 2 x99-1115.txt -3- Exhibit 99 PR NEWSWIRE NORTH EUROPEAN OIL ROYALTY TRUST ANNOUNCES NET INCOME AND RESULTS FOR THE FOURTH QUARTER OF FISCAL 2011 Red Bank, N.J. November 15, 2011 -- North European Oil Royalty Trust (NYSE- NRT) reported the net income and results for the fourth quarter of fiscal 2011 which appear below compared with the fourth quarter of fiscal 2010. 4th Fiscal Qtr. 4th Fiscal Qtr. Percentage Ended 10/31/2011 Ended 10/31/2010 Change ---------------- ---------------- ---------- German Royalties Received $6,042,056 $5,342,026 + 13.10% Net Income $5,866,147 $5,168,831 + 13.49% Net Income per Unit $0.64 $0.56 + 14.29% Distribution per Unit $0.64 $0.56 + 14.29% Net income in the fourth quarter of 2011 was higher than the fourth quarter of 2010 due to higher gas prices, higher gas sales and higher average exchange rates. The Trust receives nearly all of its royalties under two royalty agreements. The Mobil Agreement is the higher royalty rate agreement and covers gas sales from the western half of the Oldenburg concession. The OEG Agreement is the lower royalty rate agreement and covers gas sales from the entire Oldenburg concession. Relevant details are shown below. 4th Fiscal Qtr. 4th Fiscal Qtr. Percentage Ended 10/31/2011 Ended 10/31/2010 Change ---------------- ---------------- ---------- Mobil Agreement --------------- Gas Sales (Bcf)(1) 10.021 8.599 + 16.54% Gas Prices (Ecents/Kwh)(2) 2.5102 2.2021 + 13.99% Gas Prices ($/Mcf)(3) $10.04 $ 8.36 + 20.10% Average Exchange Rate (4) 1.3938 1.3262 + 5.10% OEG Agreement ------------- Gas Sales (Bcf) 28.671 23.094 + 24.15% Gas Prices (Ecents/Kwh) 2.7998 2.3395 + 19.68% Gas Prices ($/Mcf) $10.89 $ 8.66 + 25.75% Average Exchange Rate 1.3929 1.3305 + 4.69% (1) Billion cubic feet (2) Euro cents per Kilowatt hour (3) Dollars per thousand cubic feet (4) Based on average exchange rates of cumulative royalty transfers Compared to the prior year, Trust expenses for the fourth quarter of fiscal 2011 increased 6.63% to $186,899 from $175,273 in the fourth quarter of fiscal 2010 due to higher Trustee fees as mandated by the terms of the Trust Agreement. -4- Net income for fiscal 2011 was higher than fiscal 2010 due primarily to significant increases in average gas prices under the Mobil and OEG Agreements and minor increases in the average exchange rates. While gas sales under the Mobil Agreement declined by less than 1%, overall gas sales increased by 4.08%. The comparison of the relevant periods is shown below. Fiscal Year Fiscal Year Percentage Ended 10/31/2011 Ended 10/31/2010 Change ---------------- ---------------- ---------- German Royalties Received $25,148,523 $19,645,331 + 28.01% Net Income $24,195,907 $18,720,265 + 29.25% Net Income per Unit $2.63 $2.04 + 28.92% Distribution per Unit $2.63 $2.04 + 28.92% The table below shows the anticipated royalties in Euros payable during the first quarter of fiscal 2012 based on the actual royalties paid to the Trust during the fourth quarter of fiscal 2011. The amounts shown in dollars are approximated based on the current exchange rate of 1.3659. Actual royalty income in dollars will be based on exchange rates applied on the day funds are transferred, which occurs immediately upon receipt. In addition, there may be a positive adjustment to January's anticipated royalties based on actual sales during the fourth calendar quarter of 2011. Combined Royalties Combined Royalties Combined Royalties Dollar Royalties Anticipated in In Euros In Dollars In Cents per Unit ------------------------------------------------------------------------------ November Euros 1,490,935 $2,036,468 $0.22 December Euros 1,490,935 $2,036,468 $0.22 January Euros 1,490,935 $2,036,468 $0.22 ------------------------------------------------------------------------------ Efforts to resolve questions with EMPG, the operator in Germany, over royalty calculations for the calendar year 2008 are continuing. An unresolved dispute concerns the possible right of the Trust to royalties on amounts received on the sale of the pipeline system used to distribute gas produced in the royalty area. A parallel royalty holder has commenced litigation concerning this matter and the Trust is considering its alternatives. There is no assurance that a claim will be made by the Trust or, if made, that there will be any recovery. The 2012 Annual Meeting is scheduled to begin at 10:30 A.M. on February 14, 2012. The previously declared distribution of 64 cents per unit will be paid on November 30, 2011 to owners of record as of November 15, 2011. For further information contact John R. Van Kirk, Managing Director, at (732) 741-4008 or via e-mail at jvankirk@neort.com. The text of the Trust's press releases along with other pertinent information is available at the Trust's website: www.neort.com. Certain matters discussed in this press release are "forward- looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements, which address future expectations and events or conditions concerning the Trust, are subject to certain -5- risks and uncertainties that could cause actual results to differ materially from those anticipated in any forward looking statements, including the risks and uncertainties set forth in the Trust's most recent Form 10-K.