North European Oil Royalty Trust(NRT) - 2026 Q1 - Quarterly Report

Financial Performance - Net income rose from $285,468 in Q1 2025 to $1,945,021 in Q1 2026, an increase of about 582.5%[10] - Net income per unit increased from $0.03 in Q1 2025 to $0.21 in Q1 2026, reflecting a growth of 600%[10] - Distributions per unit paid or to be paid to unit owners increased from $0.04 in Q1 2025 to $0.22 in Q1 2026, a rise of 450%[10] - Total royalty income for the first quarter of fiscal 2026 was $2,212,286, a 337.5% increase from $505,697 in the first quarter of fiscal 2025[46] - Net income for the first quarter of fiscal 2026 reached $1,945,021, representing a 581.3% increase compared to $285,468 in the same period last year[46] - Distributions per unit increased to $0.22, up 450.0% from $0.04 in the first quarter of fiscal 2025[46] Asset and Liability Changes - Total assets decreased from $4,785,157 in October 2025 to $3,881,095 in January 2026, a decline of approximately 18.9%[7] - Current liabilities for distributions to be paid decreased from $2,849,083 in October 2025 to $2,021,930 in January 2026, a reduction of approximately 29%[7] - Undistributed earnings at the end of the period were $1,859,164 in January 2026, down from $1,936,073 in October 2025, a decrease of about 4%[12] - The Trust's cash and cash equivalents decreased from $4,785,156 at the beginning of the period to $3,881,094 at the end, a decline of about 18.9%[14] Royalty Income - Gas, sulfur, and oil royalties received increased significantly from $505,697 in Q1 2025 to $2,212,286 in Q1 2026, representing a growth of approximately 336.5%[10] - The Trust received $252,431 in sulfur royalties in Q1 2026, compared to $70,202 in the same period of the previous year, marking an increase of approximately 259%[38] - The Trust's royalty income is primarily derived from natural gas, which accounted for approximately 88% of cumulative royalty income in Q1 2026[33] - Sulfur royalties for the first quarter of fiscal 2026 were $252,431, significantly higher than $70,202 in the first quarter of fiscal 2025 due to geopolitical disruptions and increased demand[46] Operational Metrics - Gas sales under the Mobil Agreement for the fourth calendar quarter of 2025 were 3.351 Bcf, a 4.8% increase from 3.199 Bcf in the fourth calendar quarter of 2024[49] - Gas royalties payable in Euros under the Mobil Agreement decreased by 5.0% to €1,349,925 from €1,421,601 year-over-year[49] - Trust expenses increased by 22.2% to $285,937 in the first quarter of fiscal 2026, up from $233,965 in the same quarter of fiscal 2025[49] - The average exchange rate for the Euro to U.S. Dollar was 1.16 for the fourth calendar quarter of 2025, a 12.6% increase from 1.034 in the same quarter of 2024[49] Strategic Insights - The Trust's assets increased due to higher royalty receipts during the first quarter of fiscal 2026 compared to the fiscal year-end on October 31, 2025[50] - EMPG has not drilled any new wells since 2014 and has no new gas well drilling scheduled, limiting the information flow to what is required by German law[43]