Brooge Energy Reports 2023 First Six Months Revenue of USD 62.9 Million, an Increase of 122% as Compared to 2022 First Six Months


Total comprehensive income for the period totaled USD 37.4 million or USD 0.42 per basic and diluted earnings per share

Global demand for oil storage drives higher fixed storage rates

Management will host a conference call on Monday, October 9th at 10 a.m. ET

NEW YORK, Sept. 29, 2023 (GLOBE NEWSWIRE) -- Brooge Energy Ltd, (“Brooge Energy” or the “Company”) (NASDAQ: BROG), a Cayman Islands-based infrastructure provider, which is currently engaged in clean petroleum products and biofuels and crude oil storage and related services, announced today its financial results for the first six months ending June 30, 2023. Management will host a conference call on Monday, October 9, 2023 at 10 a.m. ET and requests that all questions be submitted to BROG@KCSA.com by Wednesday, October 4, 2023 at 8 p.m. ET.

“Demand for oil storage remains very strong given the current global economic environment and we are benefiting not only from our strategic location, but also from our high-quality infrastructure and automated technology. For the first half of 2023, we are pleased to report revenue growth of 122% when compared to the previous year’s period. Our business benefited from higher fixed storage rates resulting in a net profit of USD 37.4 million or USD 0.42 per basic and diluted share, which is 8.6 times higher than the previous corresponding period. These positive results have been achieved while maintaining our exceptional health, safety and environment record, an achievement the Company is very proud of," said Paul Ditchburn, Chief Financial Officer and Chair to the Office of the Chief Executive Officer of Brooge Energy.

Financial Results for the First Six Months Ending June 30, 2023
Gross profit for the first six months of 2023 totaled USD 51.8 million, an increase of 191%, as compared to USD 17.8 million for the first six months of 2022. Gross profit margin improved to 82% for the first six months of 2023 as compared to 63% for the first six months of 2022.

This gross profit increase was mainly attributable to revenue growth, which was driven by obtaining higher storage rates. Revenue for the first six months ending June 30, 2023 totaled USD 62.9 million as compared to USD 28.4 million for the first six months ending June 30, 2022, an increase of 122% over the previous corresponding period. Revenue primarily consists of fixed storage and handling fees, and to a less extent variable fees for ancillary services provided under a contract with its customers. Brooge Energy provided storage capacity of 1,001,388 cbm and related services to numerous oil traders and producers.

For the first six months ending June 30, 2023 the Company reported net profit for the period of USD 37.4 million or USD 0.42 per basic and diluted share as compared to USD 3.9 million or USD 0.04 per basic and diluted earnings per share for the first six months ending June 30, 2022.

As of June 30, 2023 the Company had cash and cash equivalents of USD 3.7 million and a restricted bank balance of USD 15.7 million. Total equity attributable to the shareholders totaled USD 142.5 million as of June 30, 2023 as compared to USD 105.1 million as of December 31, 2022.

Project Update and Highlights:
The Company announced it has successfully completed the Feasibility Study conducted by EY for its Green Ammonia Project in Abu Dhabi, United Arab Emirates, which aims to produce up to 700,000 MT of green ammonia per annum once fully completed. Green ammonia has gained widespread recognition as an efficient and clean carrier of green hydrogen, poised to play a crucial role in meeting global decarbonization targets by 2050. The Green Ammonia Project is led by Brooge Energy Limited’s 100% owned subsidiary Brooge Renewable Energy, which aims to produce renewable, carbon-free fuel using solar power. The Company recently announced that the technical study of its plant conducted by Thyssenkrupp Uhde has been completed and delivered.

In March 2023, Brooge Energy was awarded “Best Specialist Liquid Bulk Terminal of the Year 2023” and “Safe and Secure Terminal of the Year” at The Global Ports Forum Awards, a highly respected ceremony within the global ports and terminal industry, in Dubai, UAE.

Conference Call Details
Date: Monday, October 9, 2023
Time: 10:00 a.m. Eastern Time
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1636497&tp_key=d7de7d3bfa
Dial-In Number: 1-877-425-9470 or 1-201-389-0878
UAE Toll Free: 800 035 703 290
Conference ID: 13741507
Deadline to Submit Questions: Wednesday, October 4, 2023 at 8 p.m. ET
Email to Submit Questions: BROG@KCSA.com
Replay: 1-844-512-2921 or 1-412-317-6671 (Access ID: 13741507)

About Brooge Energy Limited
Brooge Energy Ltd, is a Cayman Islands-based infrastructure provider now intending to focus on renewable energy infrastructures and biofuels, next to clean petroleum products, crude oil storage and related services. The company conducts its business and operations through its subsidiaries Brooge Renewable Energy (BRE), Brooge Petroleum and Gas Investment Company FZE (BPGIC), and Brooge Petroleum and Gas Investment Company Phase 3 FZE. BPGIC, the Company’s primary operating subsidiary that focuses on midstream oil storage and other services, is strategically located outside the Strait of Hormuz at the Port of Fujairah in the Emirate of Fujairah in the UAE. The Company differentiates itself from competitors by providing customers with fast order processing times, excellent customer service and high accuracy blending services with low product losses. For more information, please visit at www.broogeenergy.com.

Forward-Looking Statements
This press release contains statements that are not historical facts, including the Company’s anticipated shift towards green energy and targeted production at BRE’s planned Green Hydrogen and Green Ammonia plant and constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current views based on certain assumptions, and they involve risks and uncertainties. Actual results, events or performance may differ materially from the forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including availability of labor and other resources needed to for completion of the new plant, timing of obtaining regulatory approvals needed with respect to the new facility, the Company’s ability to complete construction and initiate operations of the new facility on the anticipated timeline or at all, the Company’s ability to maintain the lease for the new facility, and other risks described in public reports filed by Brooge Energy with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Brooge Energy does not undertake any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.


Brooge Energy Limited
Unaudited Interim Condensed Consolidated Statement of Comprehensive Income
Period Ended June 30, 2023
(Figures in USD)

  June 30, 2023 June 30, 2022
 (6 Months)(6 Months)
Revenue62,912,327  28,399,372 
Direct costs (11,142,519)  (10,634,706)
Gross profit 51,769,808    17,764,666  
   
Other income122,516  23,154 
General and administration expenses(11,984,485) (5,690,986)
Finance costs(10,604,446) (14,577,131)
Changes in fair value of derivative financial instruments4,236,668  1,916,269 
Change in estimated fair value of derivative warrant liability 3,827,570    4,458,069  
Profit for the period 37,367,631    3,894,041  
Other comprehensive income Nil    Nil  
Total comprehensive income for the period 37,367,631    3,894,041  
Basic and diluted earnings per share 0.42    0.04  
      

Brooge Energy Limited
Unaudited Interim Condensed Consolidated Statement of Financial Position
As at June 30, 2023
(Figures in USD)

 June 30, 2023December 31, 2022
ASSETS  
   
Current Assets  
Cash and cash equivalents3,702,332  940,925 
Restricted bank balance7,166,795  7,319,056 
Trade accounts receivable17,299,953  5,275,047 
Inventories340,271  315,576 
Other receivable and prepayments 1,791,122    724,093  
Total Current Assets 30,300,473    14,574,697  
   
Non-Current Assets  
Restricted bank balance8,500,000  8,500,000 
Property, plant and equipment439,379,303  426,040,639 
Derivative financial instrument13,499,964  9,263,296 
Advances to contractor 15,006,262    15,223,215  
Total Non-Current Assets 476,385,529    459,027,150  
Total Assets 506,686,002    473,601,847  
   
LIABILITIES AND EQUITY  
   
Current Liabilities  
Trade and accounts payable19,293,465  17,242,748 
Contract liabilities6,494,933  6,222,055 
Other payable74,253,965  74,253,965 
Derivative warrant liability418,210  4,245,780 
Borrowings166,096,134      171,696,134 
Lease liabilities 6,696,445    6,316,342  
Total Current Liabilities 273,253,152    279,977,024  
   
Non-Current Liabilities  
Borrowings1,584,536  1,782,603 
Lease liabilities87,011,275  84,557,069 
Employees' end of service benefits284,438  134,200 
Asset retirement obligation 2,090,278    2,056,259  
Total Non-Current Liabilities 90,970,527    88,530,131  
   
Equity  
Share capital8,804  8,804 
Share premium101,777,058  101,777,058 
Statutory reserve680,643  680,643 
Retained earnings(30,395,969) (67,763,600)
Shareholder's account 70,391,787    70,391,787  
Total Equity Attributable to the Shareholders 142,462,323    105,094,692  
Total Liabilities and Equity 506,686,002    473,601,847  
      

Brooge Energy Limited
Unaudited Interim Condensed Consolidated Statement of Cash Flows
Period Ended June 30, 2023
(Figures in USD)

  June 30, 2023 June 30, 2022
 (6 Months)(6 Months)
Cash Flow from Operating Activities  
   
Profit for the period37,367,631  3,894,041 
   
Adjustments for:  
Depreciation of property, plant and equipment6,325,285  6,244,880 
Interest on borrowings8,952,688  9,225,972 
Interest on lease liabilities1,543,341  1,515,936 
Provision for employees' end of services benefits180,867  108,179 
Change in estimated fair value of derivative warrant liability(3,827,570) (4,458,069)
Changes in fair value of derivative financial instruments(4,236,668) (1,916,269)
Asset retirement obligation - accretion expense34,019  32,930 
Expected credit losses of trade accounts receivables3,313,538 Nil 
Write-off of trade accounts receivables927,519 Nil 
   
Changes in operating assets and liabilities  
Increase in trade accounts and other receivable and prepayments(17,332,992) (5,640,482)
Increase in inventories(24,695) (27,006)
(Decrease) / Increase in trade accounts and other payable(5,920,283) 17,004,529 
Increase in contract liabilities272,878  2,458,296 
Payment of employees' end of services benefits (30,629 ) Nil 
Net cash flows generated from operating activities27,544,929  28,442,937 
   
Cash Flow from Investing Activities  
   
Amount withdrawn from restricted bank account152,261  3,106,502 
Purchase and capitalization of property, plant and equipment (7,530,827)  (15,489,367)
Net cash flows used in investing activities(7,378,566) (12,382,865)
   
Cash Flow from Financing Activities  
   
Proceeds from borrowingsNil  3,105,092 
Repayment of borrowings(7,198,067) (7,728,288)
Payment of lease liabilities(2,503,822) (3,056,444)
Interest paid on borrowings(7,703,067) (8,241,981)
Movement in shareholder's account Nil    (574,868)
Net cash flows used in financing activities(17,404,956) (16,496,489)
   
Net change in cash and cash equivalents2,761,407  (436,417)
Cash and cash equivalents at beginning of the period 940,925    1,452,316  
Cash and cash equivalents at end of the period 3,702,332    1,015,899  

 

Coordonnées