Annual Report 2025

Hermana Holding ASA (“Hermana”, “the Group”) is an investment and royalty company based in Oslo and listed on the Oslo Stock Exchange since June 2024.

The Group has evolved from the legacy business of Sevan Marine ASA (“Sevan Marine”) and Magnora ASA (“Magnora”). Sevan Marine designed floating production, storage and offloading units (FPSOs) for the offshore oil and gas industry. Sevan Marine’s business was sold to SembCorp Marine in 2018, except for two license agreements remaining with Sevan Marine alongside the company’s deferred-tax assets. Sevan Marine changed name to Magnora which in 2020 started to invest in renewables and is today a well-established developer of data center and renewable-energy projects.

In 2023-2024 a strategic review led to the conclusion that the two different businesses of renewables and royalties, respectively, would progress most effectively separately: Magnora as a renewables and digital infrastructure developer and the new company Hermana Holding as a royalty business based on the legacy from Sevan Marine.

Hermana was carved out and demerged from Magnora during the second quarter of 2024 and then listed on the Oslo Stock Exchange. Magnora’s shareholders got 70 percent of the shares in Hermana Holding whereas Magnora retained 30 percent initially and later, in June 2025, exited completely.

Hermana’s current proceeds are from FPSO design royalties. Cash flow related to the Shell Penguins FPSO was received in 2025, in the form of settlement of a receivable from Magnora, totalling NOK 88.7 million – thus completing the proceeds concerning this FPSO.

Hermana’s remaining royalty rights are related to the Western Isles FPSO, which has a production capacity of 44,000 boe (barrels of oil equivalents) per day and a storage capacity of 400,000 boe. The licence agreement entitles Hermana to USD 0.50 per barrel produced over the lifetime of the FPSO, irrespective of operating location and field. The FPSO’s first period of operations was from 2017 to 2024. Through 2025 and as of year-end 2025, the FPSO was awaiting redeployment. Media reported in January 2026 that the FPSO was being marketed for sale and that there were several potential new owners. Hermana is generally positive to events that advance the redeployment of the FPSO and the corresponding royalty revenue. The Western Isles FPSO is expected to generate revenue for Hermana for more than two decades ahead, the hull having a design life of 30-50 years.

In parallel, Hermana evaluates potential investments that may represent a sensible allocation of existing funds and the royalty proceeds. Hermana maintains continuous contact with banks, investors, owners of growth companies, and others regarding attractive opportunities.

Hermana has a basis in the management of royalties, but direct investments in equity are equally relevant.

The Group is primarily a long-term owner, while also acquiring or selling shares, royalty rights, and other assets, depending on the situation. The Group is opportunity-driven, pragmatic regarding industry scope, and focused on the Nordic region. Preference is for profitable businesses which stand out and have solid management. Investments may be well diversified or in a larger company/asset, e.g. involving a transformational deal.

Operating costs are low and flexible and continuously adapted to the prevailing activity level.

Hermana aims to enter, manage, and sometimes exit, investments with a financial return significantly above the cost of capital. Any return of capital to shareholders will currently be in the form of repayment of paid-in capital.