Hermana Holding ASA Third quarter 2025

• On 21 October, Hermana was informed that the Shell Penguins FPSO had produced its first 4 million barrels of oil and oil equivalents, triggering a payment of USD 4.3 million via Magnora ASA to Hermana.

• Hermana expects to receive USD 4.3 million during the fourth quarter of 2025, as payment of a demerger receivable from Magnora ASA related to the Shell Penguins FPSO licence agreement.
• The FPSO design royalty rights related to the Western Isles vessel represent an expected larger and longer-term revenue. Hermana is entitled to USD 0.50 per barrel of oil equivalents produced and offloaded from the vessel for its lifetime, and its design life is 30-50 years. We observe an active contracting market in 2025 including several FPSOs changing owner. However, there is not any new specific information about the timing of the redeployment of the Western Isles vessel. We anticipate in the short term more clarity around the UK windfall tax, relevant for potential deployment on the Buchan Field, and/or deployment on alternative fields or areas.

• Hermana continues to evaluate investment opportunities in accordance with its 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 vessel does not currently generate revenues for Hermana, but future revenues from this FPSO are expected to last more than two decades. The agreement gives Hermana the right to USD 0.50 per barrel of oil equivalent produced and offloaded from the FPSO during its lifetime. It 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 3,500 m3/hour. The vessel is versatile and can operate in harsh conditions.

In addition, Hermana has one remaining milestone payment to be received from Magnora ASA for the demerger receivable tied to the Shell Penguins FPSO licence agreement.

Hermana has a pragmatic and opportunity-driven approach to the capital allocation of the current funds and the proceeds from royalty agreements. 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, contract risk, tax risk, inflation risk, currency risk, project execution risk, reservoir performance risk, counterparty risk, market and price volatility, liquidity and credit risk, key personnel risk, compliance risk, and operational risk related to asset integrity and 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 vessel is designed to operate in harsh environments, physical climate risk could still impact uptime. Transitional climate risk includes evolving regulatory frameworks, such as changes in taxation, energy policy, and licensing regimes. A key mitigating factor is the mobility of the FPSO, which allows for relocation to more favourable jurisdictions or projects. The Western Isles vessel is also technically adaptable for future electrification.

Operational and project risk: The Group’s revenue is directly linked to oil and gas production through a licence fee agreement. Project delays, reservoir underperformance, or operational disruptions may then impact income. Market risk is also relevant, encompassing fluctuations in commodity prices, demand, supply, and competitive positioning. These factors contribute to uncertainty around both timing and volume of future cash flows. At present, the timing of the redeployment of the Western Isles vessel 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 in USD, exposing the Group to currency fluctuations relative to NOK. This represents both risk and opportunity and is actively monitored. Inflation risk is also relevant, particularly as the USD 0.50 per barrel licence fee is not indexed. High 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 any 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. The Group emphasises risk awareness and adherence to internal controls.

The Group has 13,743,184 shares outstanding as of 30 September 2025. At this date, the share price was NOK 13.00. Market capitalisation was thus NOK 179 million. As of the date of this report, the Group does not own any of its own shares.

Oslo, Norway, 21 October 2025

The Board of Directors of Hermana Holding ASA