North European Oil Royalty Trust(NRT) - 2024 Q2 - Quarterly Report

Financial Performance - Total royalty income for the second quarter of fiscal 2024 was $2,232,767, a decrease of 77.1% compared to $9,760,018 in the second quarter of fiscal 2023[39] - Net income for the second quarter of fiscal 2024 was $2,033,899, down 78.6% from $9,504,566 in the same quarter of fiscal 2023[39] - Distribution per unit decreased to $0.20 in the second quarter of fiscal 2024, an 81.0% decline from $1.05 in the second quarter of fiscal 2023[39] - Total royalty income for the first six months of fiscal 2024 was $2,657,677, an 86.4% decrease from $19,525,901 in the first six months of fiscal 2023[48] - Net income for the first six months of fiscal 2024 was $2,212,984, down 88.4% from $19,040,580 in the same period of fiscal 2023[48] - Distribution per unit for the first six months of fiscal 2024 was $0.25, an 87.8% decline from $2.05 in the first six months of fiscal 2023[48] Gas Sales and Prices - Gas sales under the Mobil Agreement for the first calendar quarter of 2024 were 3.236 Bcf, a decrease of 6.2% from 3.451 Bcf in the first calendar quarter of 2023[41] - Average gas prices under the Mobil Agreement dropped by 54.3% to 4.1601 Ecents/Kwh in the first calendar quarter of 2024 from 9.1043 Ecents/Kwh in the first calendar quarter of 2023[41] - For the six months ended 3/31/2024, gas sales from the Mobil Agreement decreased by 7.3% to 6.459 Bcf compared to 6.970 Bcf for the same period in 2023[51] - Gas prices under the Mobil Agreement fell by 65.6% to 4.0068 Ecents/Kwh from 11.6593 Ecents/Kwh year-over-year[51] - Gas royalties from the Mobil Agreement dropped by 68.1% to €2,959,471 compared to €9,286,500 in the previous year[51] - Gas sales from the OEG Agreement decreased by 12.6% to 21.955 Bcf from 25.123 Bcf year-over-year[51] - Gas prices under the OEG Agreement decreased by 65.8% to 4.0844 Ecents/Kwh from 11.9309 Ecents/Kwh[51] - Total gas royalties from the OEG Agreement fell by 74.7% to €1,352,998 compared to €5,343,410 in the previous year[51] Expenses and Income - The Trust's expenses for the second quarter of fiscal 2024 decreased by 31.2% to $215,201 from $312,869 in the second quarter of fiscal 2023[45] - Trust expenses for the first six months of fiscal 2024 decreased by 17.2%, or $97,175, to $468,486 from $565,661 in the same period of fiscal 2023[54] - Trust interest income for the first six months of fiscal 2024 decreased to $23,793 from $80,340 in the first six months of fiscal 2023[54] Operational Focus - EMPG will not be drilling any wells during 2024, focusing instead on small workover jobs to maintain production[56] - The next major refurbishment of the desulfurization plant is scheduled for 2026, which will provide better insights into future gas production limits[56] Royalty Income Sources - Natural gas provided approximately 95% of the cumulative royalty income received in fiscal 2024[27]