Hermana Holding — Earnings Release 2025

Apr 25, 2025

Hermana Holding Q1 2025: USD 4.3 million payment from Shell and low operational costs, while actively positioning Hermana for future business

Hermana Holding Q1 2025: USD 4.3 million payment from Shell and low operational costs, while actively positioning Hermana for future business

25 April 2025: The investment and royalty company releases its financial report for the first quarter of 2025.

Highlights of the quarter and near-term outlook:

•Shell UK Ltd. announced that the Shell Penguins FPSO (Floating Production Storage and Offloading unit) had achieved “first oil”, which triggered a payment of USD 4.3 million to Magnora ASA for subsequent transfer to Hermana Holding ASA (“Hermana”).

•Hermana expects to receive a second payment of USD 4.3 million in Q3 2025, contingent on the Shell Penguins FPSO producing 4 million barrels of oil (“boe”).

•From the Western Isles FPSO, Hermana is entitled to USD 0.5 per boe produced for eternity.

•The Western Isles FPSO may benefit from regulatory clarity on British Energy Profits Levy (“Windfall Tax”). In March 2025 the UK government initiated eight weeks of consultations on the tax framework for energy company profits post 2030, and initial signals indicate that the industry’s concerns are taken seriously. The new regime may allow profitable investments in the UK oil and gas sectors and re-commitment of the vessel to the Buchan field.

•If the vessel is not recommitted to Buchan or another UK field, its cost advantage should pave the way for redeployed to another global field. The Western Isles FPSO has an estimated lifespan (the hull) of 30 to 50 years, with potential for extensions through refurbishments. It offers the benefits of being both the lowest-cost development option and the one that results in the lowest full-cycle carbon footprint. Several similar FPSOs have been redeployed to other fields worldwide in recent years.

•Hermana maintained low operational expenditures of NOK 1.3 million in Q1, enabled by flexible hired-in services.

•During the quarter, the management team initiated a targeted marketing that resulted in the generation of a strong pipeline of both inbound and actively sourced interesting investment opportunities that align with the company’s investment criteria.

•Hermana intends to pursue strategic investments using existing cash reserves and funds from the demerger receivable. Dialogue with leading financial institutions has been established to position Hermana for debt financing.