North European Oil Royalty Trust(NRT) - 2025 Q4 - Annual Report

Financial Performance - The Trust's gross royalty income for fiscal 2025 increased by 49.5% to $8,650,094 from $5,785,303 in fiscal 2024[70] - Net income for 2025 was $7,938,920, a significant increase of 57% compared to $5,057,813 in 2024[107] - Total royalties received for fiscal 2025 amounted to $8,650,094, a significant increase from $5,785,303 in fiscal 2024, representing a year-over-year growth of approximately 49%[128] - Net income for fiscal 2025 reached $7,938,919, compared to $5,057,813 in fiscal 2024, indicating a year-over-year increase of about 57%[128] - The net income per unit for fiscal 2025 was $0.86, up from $0.55 in fiscal 2024, reflecting a growth of approximately 56%[128] - Total distributions paid or to be paid for fiscal 2025 were $7,444,378, compared to $4,411,483 in fiscal 2024, marking an increase of around 68%[128] - Distributions per unit for fiscal 2025 were $0.81, an increase from $0.48 in fiscal 2024, representing a growth of approximately 69%[128] - In the fourth quarter of fiscal 2025, royalties received were $3,055,865, compared to $670,204 in the fourth quarter of fiscal 2024, showing a substantial increase of about 355%[128] Revenue Sources - Royalty income from the Mobil Agreement increased by 30.7% to $5,535,716, while income from the OEG Agreement rose by 81.3% to $2,812,905[70] - Gas sales under the Mobil Agreement decreased by 4.7% to 11.994 Bcf in fiscal 2025 from 12.592 Bcf in fiscal 2024[71] - Average gas prices under the Mobil Agreement increased by 11.1% to 4.1328 €cents/kWh in fiscal 2025[72] - Gas sales under the OEG Agreement decreased by 7.0% to 39.893 Bcf in fiscal 2025 from 42.918 Bcf in fiscal 2024[77] - Average gas prices under the OEG Agreement increased by 11.5% to 4.2293 €cents/kWh in fiscal 2025[79] Expenses and Assets - Trust expenses for fiscal 2025 were $795,648, virtually unchanged from $797,872 in fiscal 2024[82] - Operating expenses slightly decreased to $784,632 in 2025 from $790,289 in 2024, a reduction of 1.5%[107] - Total assets increased to $4,785,157 in 2025 from $1,625,344 in 2024, representing a growth of 194%[104] - Cash and cash equivalents at the end of 2025 were $4,785,156, up from $1,625,343 in 2024, marking a 194% increase[112] - Undistributed earnings at the end of 2025 were $1,936,073, compared to $1,441,531 in 2024, indicating a growth of 34%[109] Operational Insights - The Trust's consultant indicated that no new wells are planned for calendar 2026, with maintenance work continuing to ensure maximum efficiency[85] - The Trust has no off-balance sheet arrangements, ensuring transparency in financial reporting[87] - The Trust's modified cash basis accounting provides a more meaningful presentation of operations to unit owners[116] - The Trust does not engage in trading activities related to foreign exchange or commodity price fluctuations, minimizing market risk exposure[90] Employee and Management Information - The Trust's Managing Director was reimbursed $11,016 for office services in fiscal 2025, up from $7,583 in fiscal 2024, indicating a rise of approximately 45%[126] - The Trust has established a SIMPLE IRA plan for employees, allowing contributions of up to 3% of cash compensation for the 2025 and 2024 calendar years[127] Trust Background - The Trust's royalty rights cover gas and oil production in certain concessions in Germany, with contracts in place with ExxonMobil and Royal Dutch/Shell[125] - The Trust was formed on September 10, 1975, and has since held overriding royalty rights for gas and oil production[125]