The investment and royalty company Hermana Holding ASA publishes its annual report for 2025
Hermana Holding ASA (‘Hermana’) delivered strong cash flow in 2025, has a solid financial position and is evaluating further investments including transformational deals.
Highlights of 2025 and outlook:
• During the year, Hermana received NOK 88.7 million in proceeds related to the Shell Penguins FPSO royalty agreement, settling the corresponding receivable from Magnora ASA.
• Operationally, attention and efforts were mainly on the follow-up of royalty proceeds, positioning for more diversified capital allocation, and evaluating investment opportunities.
• During the year, Hermana evaluated approximately 40 potential investments. With an opportunity-driven and patient approach to capital allocation, the company explored options ranging from small- and mid-cap investments to transformational deals. Several of the cases are still relevant.
• Operating revenues and costs were moderate, mainly due to the Western Isles FPSO not being deployed in 2025, as in most of 2024. Revenue was NOK 1.2 million (2024: NOK 3.9 million), operating expenses NOK 6.4 million (2024: NOK 13.1 million) and operating profit negative 5.3 million (2024: negative NOK 9.2 million). Foreign exchange gain was negative NOK 9.3 million (2024: positive NOK 10.2) and net profit negative NOK 13.4 million (2024: positive NOK 1.7 million).
• At year-end, cash and cash equivalents amounted to NOK 104.3 million, there was no long-term debt and book value of assets was NOK 112.8 million.
• Hermana expects in 2026 more clarity on the future royalty revenues from the Western Isles FPSO. This FPSO, currently awaiting redeployment, represents a significant long-term revenue as Hermana is entitled to USD 0.50 per barrel of oil equivalents produced and offloaded from the FPSO for its lifetime. According to media, the owners of the FPSO have initiated a sales process attracting broad interest from potential buyers.
• Main operational priorities ahead are to manage the royalty rights, maintain cost discipline, continue evaluating investment opportunities, and act when the situation is right. Any investments will rely on an estimated return well above the cost of capital, and the return of cash to the shareholders will also regularly be considered. The company considers both its financial position and the outlook to be positive.
The Annual Report for 2025 is attached and also available on www.hermanaholding.com.
About Hermana Holding Hermana Holding ASA is an investment and royalty company, listed on the main list of the Oslo Stock Exchange since 2024. The company has revenues from FPSO design rights previously owned by Sevan Marine ASA and later Magnora ASA. Hermana has a pragmatic and opportunity-driven approach to the allocation of the current funds and the royalty revenues.