Hermana (HERMA) Q1 2025 earnings summary

Executive summary

• Achieved "first oil" milestone at Shell Penguins FPSO, triggering a USD 4.3 million payment to Magnora for subsequent transfer to Hermana; another USD 4.3 million due after 4 million barrels produced.

• Entitled to USD 0.5 per barrel from Western Isles FPSO for its lifetime; Dana Petroleum canceled transfer agreement for Buchan field, but vessel remains versatile for redeployment.

• Q1 2025 operating revenue was NOK 0.2 million, down from NOK 3.2 million in Q1 2024; operating expenses NOK 1.3 million, mainly for support services from Magnora.

• Cash and cash equivalents at quarter-end were NOK 14.5 million, up from NOK 2.6 million year-over-year; no investments or new financing in the quarter.

• Equity ratio at 100% with no debt; total assets NOK 113.8 million, up from NOK 5.4 million year-over-year.

Financial highlights

• Net loss of NOK 8.0 million in Q1 2025 compared to net profit of NOK 1.7 million in Q1 2024.

• Operating revenue NOK 0.2 million (Q1 2024: NOK 3.2 million); EBITDA and operating loss both NOK -1.1 million.

• Cash flow from operations was negative NOK 2.1 million; no investing or financing cash flows in the quarter.

• Share capital at NOK 13.4 million; total equity NOK 113.5 million as of 31 March 2025.

Outlook and guidance

• Expecting USD 4.3 million in Q2 2025 and another USD 4.3 million in Q3 2025 from Shell Penguins FPSO milestone payments.

• Western Isles FPSO remains a long-life, versatile asset with potential for redeployment if not used in the UK.

• Management continues to evaluate value-accretive investment opportunities and maintains flexible cost structure.