Hermana (HERMA) Q3 2024 earnings summary

Executive summary

• Hermana Holding ASA began trading on the Oslo Stock Exchange on 18 June 2024 after a demerger from Magnora ASA, inheriting the legacy Western Isles FPSO license agreement and a receivable from Magnora for Shell Penguins milestone payments.

• No revenue was generated in Q3 2024, with operating expenses of NOK 2.3 million and a net loss of NOK 4.5 million for the quarter.

• The company maintains an asset-light model, with cash and cash equivalents of NOK 18.8 million at quarter-end and no debt.

• Hermana expects additional funds from the demerger receivable in late 2024 or early 2025, supporting future investments and business development.

Financial highlights

• Q3 2024 operating revenue was NOK 0.0 million, down from NOK 1.3 million in Q2 2024 and NOK 3.7 million in Q3 2023 (carve-out).

• Operating expenses were NOK 2.3 million in Q3 2024, compared to NOK 6.6 million in Q2 2024.

• EBITDA and operating profit/loss for Q3 2024 were both NOK -2.3 million.

• Net loss for Q3 2024 was NOK 4.5 million, compared to a net profit of NOK 0.7 million in Q2 2024.

• Cash flow from operating activities was negative NOK 4.6 million in Q3 2024, mainly due to IPO-related expenses.

Outlook and guidance

• Asset-light business model with low operating costs and flexibility to reduce expenses if revenues are delayed.

• Additional funds from the demerger receivable expected in late 2024 or early 2025 will support patient target search and investment opportunities.

• Management capacity increased in Q3 to support business plan execution and pursue transformational targets.