Hermana (HERMA) Q4 2024 earnings summary

Executive summary

• Completed demerger from Magnora ASA and listed on Oslo Stock Exchange in June 2024, focusing on royalty-based revenues from FPSO agreements and future growth in equity and royalty investments.

• 2024 marked the first operational year, with a foundation set for growth, low operating costs, and a patient approach to new investments.

• Main revenue source is the Western Isles FPSO license; significant receivable from Shell Penguins FPSO milestones expected in 2025.

Financial highlights

• 2024 consolidated revenue: NOK 3.9 million, net profit: NOK 1.7 million, operating costs: NOK 13.1 million.

• Book equity at year-end: NOK 121.5 million; cash and cash equivalents: NOK 16.6 million.

• Earnings per share: NOK 0.13; equity ratio: 99.3%.

• No dividend paid in 2024; paid-in capital in excess of par value available for future distribution: NOK 1.7 billion.

• Parent company reported an after-tax loss of NOK 14.9 million.

Outlook and guidance

• High-probability future revenue from FPSO agreements, with Western Isles FPSO revenue expected from 2027/2028.

• Focus on building a diversified portfolio of royalties and equity investments, maintaining low operating costs and financial flexibility.

• Board expresses confidence in the long-term strategy and positive outlook.