Financial Performance - Total royalty income for Q3 fiscal 2023 was $2,490,778, a decrease of 43.94% compared to $4,442,665 in Q3 fiscal 2022[41] - Net income for Q3 fiscal 2023 was $2,290,894, down 46.63% from $4,292,607 in Q3 fiscal 2022[41] - Distributions per unit decreased to $0.21 in Q3 fiscal 2023, a decline of 54.35% from $0.46 in Q3 fiscal 2022[41] - Total royalty income for the first nine months of fiscal 2023 was $22,016,679, an increase of 104.56% compared to $10,762,772 in the first nine months of fiscal 2022[50] - Net income for the first nine months of fiscal 2023 was $21,331,473, representing an increase of 109.04% compared to $10,204,395 in the same period of fiscal 2022[52] - Distributions per unit increased to $2.26, up 107.34% from $1.09 in the prior year[52] Gas Sales and Royalties - Natural gas accounted for approximately 98.75% of cumulative royalty income in fiscal 2023[28] - Gas sales under the Mobil Agreement for the second calendar quarter of 2023 were 2.957 Bcf, down 19.32% from 3.665 Bcf in the same period of 2022[43] - Average gas prices under the Mobil Agreement decreased by 23.14% to 4.7294 Ecents/Kwh in Q2 2023 from 6.1535 Ecents/Kwh in Q2 2022[44] - Gas sales under the Mobil Agreement decreased by 12.73% to 9.927 Bcf, while gas prices increased by 103.43% to 9.5953 Ecents/Kwh[54] - Gas royalties payable under the Mobil Agreement rose by 78.36% to $11,712,503, compared to $6,566,767 in the previous year[54] - Gas sales under the OEG Agreement decreased by 11.89% to 35.626 Bcf, with gas prices increasing by 102.78% to 9.8363 Ecents/Kwh[54] - Total royalties attributable to gas sales from the Oldenburg concession amounted to $21,741,095, with western Oldenburg contributing approximately 73.79% of this total[54] - The effective royalty rate on gas sold from western Oldenburg is approximately seven times higher than that from eastern Oldenburg, with western gas sales accounting for 78.02% of total gas royalties[46] Trust Expenses and Income - Trust expenses for Q3 fiscal 2023 increased by 53.84% to $231,833 compared to $150,693 in Q3 fiscal 2022[47] - Trust expenses for the first nine months of fiscal 2023 increased by 42.5% to $797,494, compared to $559,638 in the prior year[55] - The Trust received $34,586 in sulfur royalties during the first nine months of fiscal 2023, down from $231,356 in the same period of fiscal 2022[32] - Trust interest income increased significantly to $112,289 from just $1,261 in the same period of fiscal 2022 due to higher interest rates[55] Future Outlook and Risks - The Trust's assets are depleting, and future performance is subject to risks including gas production levels and economic conditions[57] - The Trust does not undertake any obligation to update forward-looking statements after their initial date[57]
North European Oil Royalty Trust(NRT) - 2023 Q3 - Quarterly Report