Second quarter and half-year 2025

• On 2 May 2025, Hermana Holding ASA (“Hermana”, “the Group”) received a payment of NOK 44.9 million from Magnora ASA settling approximately half of the demerger receivable established in 2024 tied to licensing rights. The license fees are from a license agreement with Shell for the Shell Penguins FPSO, and the payment was received by Magnora as the milestone “first oil” was achieved. Hermana is entitled to another payment of USD 4.3 million from Magnora when the Shell Penguins FPSO has produced its first 4 million barrels of oil.
• Hermana is also entitled to USD 0.50 per barrel produced and offloaded from the Western Isles FPSO for the lifetime of the vessel, which is currently at yard awaiting redeployment. There is no new confirmed information regarding the vessel during the quarter. The latest information available in the media indicates that the owners are considering alternatives due to regulatory uncertainty in the UK. Based on comments from analysts and available information in the media, we expect the UK windfall tax to be determined this fall and that it may be in an acceptable range for UK oil and gas operators to prioritise continued and new investments.
• During the first half of 2025, Hermana has established a structured investment process and evaluated a number of possible investments of which several are of interest. Hermana maintains continuous contact with banks, other investors, business owners, and other parties that are sources and discussion partners regarding opportunities that may meet Hermana’s investment criteria.
• The Group had NOK 0.4 million in operating revenue during the second quarter 2025 (NOK 1.3 million in Q2 2024). Operating expenses for the quarter were NOK 1.6 million (NOK 6.6 million in Q2 2024), mainly consisting of support services from Magnora ASA. Annual operating expenses have been forecasted at NOK 7.5-10 million and may be reduced if revenues are delayed or activity level is low.
• As of 30 June 2025, cash and cash equivalents was NOK 59.8 million (NOK 23.4 million in Q2 2024). Cash generated from operating activities was a positive NOK 0.4 million. Cash generated from investing activities was a positive NOK 44.9 million. There was no new financing during the quarter.
• As of 30 June 2025, the equity ratio was 98% (98% same date last year). The Group has no debt and total assets are NOK 111.9 million (NOK 125.2 million same date last year).

• Following dialogue with shareholders, an extraordinary general meeting was held on 6 August 2025. Lars Ørving Eriksen and Hannah Høydal were elected new members of the Board of Directors. The meeting also approved, inter alia, a rights issue directed towards the chair, other members and observer of the Board. These will subsequently subscribe for shares at a price equal to the volume-weighted average share price for the last 90 days prior to the date of the notice of the extraordinary general meeting, plus a markup.
• On 13 August 2025 the Board of Directors appointed Morten Strømgren as CEO and CFO of Hermana Holding ASA. Strømgren is hired in from Magnora ASA based on a management-services agreement. He brings to Hermana broad experience from asset management, finance and corporate development.

• The Group expects to receive the remaining USD 4.3 million demerger receivable from Magnora ASA after the Shell Penguins FPSO has produced its first 4 million barrels of oil, a milestone forecasted to be reached in Q4 2025.
• The design royalty rights related to the Western Isles FPSO represent an expected larger and longer-term revenue for the Group. The FPSO has a design life of 30-50 years. The FPSO remains a very versatile asset, as it also can operate in harsh weather environments and can use electric power sources due to its circular shape.
• Management continues to evaluate investment opportunities in accordance with the Group’s capital allocation strategy, with a focus on value-accretive deployment of available funds.

Hermana is an investment and royalty company listed on the Oslo Stock Exchange since June 2024, having evolved from the legacy business of Sevan Marine ASA, renamed Magnora ASA in 2018. Sevan Marine ASA designed FPSOs – floating production, storage and offloading units – for the offshore oil and gas industry. Sevan Marine’s business was sold to SembCorp Marine in 2018, but two licence agreements remained with Sevan Marine ASA alongside the company’s deferred tax assets.

The licence agreement for the Western Isles FPSO does not currently generate revenues for Hermana, but such future revenues are expected to last more than two decades. The agreement gives Hermana the right to USD 0.5 per barrel of oil produced and offloaded from the FPSO during its lifetime. The FPSO features a storage capacity of 400,000 barrels of oil (bbls), an oil production capacity of 44,000 barrels of oil per day (bopd), 17 riser slots and an offloading rate of 3,500m3/hour. Due to good motion characteristics, the vessel experiences limited fatigue and has long life expectancy compared with ship-shaped FPSOs. The FPSO provides significant savings in capex and operating cost as it is geostationary. This eliminates the need for diesel powered weather waning (turret and swivel system) and allows for flexibility in future tie-ins.

In addition to this licence agreement, Hermana also has outstanding payments to be received from Magnora ASA for the demerger receivable tied to the Shell Penguins FPSO agreement, where there is one remaining milestone payment.

Hermana has a pragmatic and opportunity driven approach to the capital allocation of the current funds and the proceeds from the royalty agreement. The company has a structured process for evaluating opportunities with the objective of generating further shareholder value. The main capital-allocation options are equity investments in non-listed companies and/or a transformational deal with another company (e.g. a reverse takeover). Hermana will only invest where the expected return on capital is favourable. Any return of capital to shareholders will be in the form of repayment of paid-in capital.

Hermana Holding ASA with its subsidiary Western Isles Holding AS (“the Group”), is exposed to a broad range of risks, including but not limited to: climate risk (both physical and transitional), regulatory and political risk, tax risk, inflation risk, currency risk, project execution risk, reservoir performance risk, contract and counterparty risk, market and price volatility, liquidity and credit risk, key personnel risk, compliance risk, and operational risk related to asset performance.

The Group’s risk management framework is designed to identify, assess, and mitigate material risks that could adversely impact financial performance or strategic objectives. While a comprehensive overview of risks and mitigation strategies is provided in the annual report, this quarterly update highlights the most relevant risks as of the reporting date.

Climate risk

Both physical and transitional climate risks are considered significant. Rising global temperatures, increased frequency of extreme weather events, and shifting environmental conditions may affect offshore operations. While the Western Isles FPSO is designed to operate in harsh environments, physical climate risk could still impact uptime and maintenance schedules. Transitional climate risk includes evolving regulatory frameworks, such as changes in taxation, energy policy, and licensing regimes, which may affect the Group’s financial outlook. A key mitigating factor is the mobility of the FPSO, which allows for relocation to more favourable jurisdictions or projects. The Western Isles FPSO is also technically adaptable for future electrification.

Operational and project risk

The Group’s revenue is directly linked to oil and gas production volumes through a licence fee arrangement. As such, project delays, reservoir underperformance, or operational disruptions may materially impact income. Market risk is also relevant, encompassing fluctuations in commodity prices, demand and supply dynamics, and competitive positioning. These factors contribute to uncertainty around both timing and volume of future cash flows. At present, the timing of “first oil” from the Western Isles FPSO is difficult to estimate based on the information available to the Group.

Counterparty risk

The Group is exposed to the financial and operational stability of the FPSO owner and operator. Broader counterparty risk also applies to customers and suppliers, where unforeseen financial distress could disrupt operations or cash flows.

Currency and inflation risk

Licence fees are denominated in USD, exposing the Group to currency fluctuations relative to NOK. While this presents both risk and opportunity, it is actively monitored. Inflation risk is also relevant, particularly as the USD 0.5 per barrel licence fee is not indexed. Persistent inflation could erode the real value of this income stream and influence discount rates used in valuation models. The Group seeks to mitigate this through cost discipline and potential investments in inflation-resilient assets.

Investment and liquidity risk

For new investments, the Group faces the risk of returns falling below the cost of capital and potential liquidity constraints. These risks are addressed through rigorous investment analysis, disciplined capital allocation, and a strong balance sheet.

The Group continuously monitors its risk exposure at both the corporate and asset level. While risk-taking is necessary to generate returns, the Group avoids risks that do not offer commensurate rewards. A strong risk culture is embedded across the organization, with each team member expected to contribute to risk awareness and adherence to internal controls.

The Group has 13,418,740 shares outstanding as of 30 June 2025. At this date, the share price was NOK 13.80. As of the date of this report, the Group does not own any of its own shares.

Oslo, Norway, 19 August 2025

The Board of Directors of Hermana Holding ASA