By Josh Beckerman
North European Oil Royalty Trust units touched a 52-week low after the trust reduced its quarterly distribution to 2 cents a unit, compared with 21 cents in the third quarter.
Units were down 15%, to $4.38, on Friday, with an intraday low of $4.08, and are down about 25% this year.
The Oldenburg concession in Germany provides nearly 100% of the trust's royalties. The trust receives royalties for sales of oil, gas, condensate and sulfur under contracts with German units of Exxon Mobil and Royal Dutch/Shell Group.
North European Oil Royalty Trust said the reduction largely resulted from the carry-over of negative adjustments from the prior quarter and the substantial negative adjustment from calendar 2023. The calendar 2023 adjustment is also expected to affect the payout for the first quarter of 2025.
The trust's distributions and royalty income for the nine months ended July 31 declined sharply due to lower gas prices and sales.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
November 01, 2024 14:55 ET (18:55 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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