Hermana (HERMA) Q2 2024 earnings summary

Executive summary

• Hermana Holding ASA completed its demerger from Magnora ASA and began trading on the Oslo Stock Exchange on 18 June 2024.

• The group operates a license agreement with Dana Petroleum for the Western Isles FPSO, generating royalty income based on oil production.

• Shareholders of Magnora ASA received one Hermana share per Magnora share as part of the restructuring.

• Hermana holds a receivable of USD 8.6 million from Magnora ASA related to the Shell Penguins license agreement.

• No significant subsequent events occurred after the reporting period.

Financial highlights

• Q2 2024 operating revenue was NOK 1.3 million, down from NOK 3.2 million in Q1 2024.

• Operating expenses in Q2 2024 were NOK 6.6 million, mainly due to support and listing costs.

• Net profit for Q2 2024 was NOK 0.7 million; for H1 2024, net profit was NOK 2.4 million.

• Cash and cash equivalents at 30 June 2024 were NOK 23.4 million.

• Cash flow from operating activities in Q2 2024 was negative NOK 3.2 million, mainly due to low revenues and high costs.

Outlook and guidance

• Operating expenses are expected to be around or less than NOK 10 million per annum, barring new investments.

• The redeployment of the Western Isles FPSO to the Greater Buchan Area is expected to generate income for many years, with start-up anticipated in 2026/2027.