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

Brooge Energy Limited
Brooge Energy Limited

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)

Revenue

62,912,327

 

 

28,399,372

 

Direct costs

(11,142,519

)

 

(10,634,706

)

Gross profit

51,769,808

 

 

17,764,666

 

 

 

 

Other income

122,516

 

 

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 instruments

4,236,668

 

 

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, 2023

December 31, 2022

ASSETS

 

 

 

 

 

Current Assets

 

 

Cash and cash equivalents

3,702,332

 

 

940,925

 

Restricted bank balance

7,166,795

 

 

7,319,056

 

Trade accounts receivable

17,299,953

 

 

5,275,047

 

Inventories

340,271

 

 

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 balance

8,500,000

 

 

8,500,000

 

Property, plant and equipment

439,379,303

 

 

426,040,639

 

Derivative financial instrument

13,499,964

 

 

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 payable

19,293,465

 

 

17,242,748

 

Contract liabilities

6,494,933

 

 

6,222,055

 

Other payable

74,253,965

 

 

74,253,965

 

Derivative warrant liability

418,210

 

 

4,245,780

 

Borrowings

166,096,134

 

 

171,696,134

 

Lease liabilities

6,696,445

 

 

6,316,342

 

Total Current Liabilities

273,253,152

 

 

279,977,024

 

 

 

 

Non-Current Liabilities

 

 

Borrowings

1,584,536

 

 

1,782,603

 

Lease liabilities

87,011,275

 

 

84,557,069

 

Employees' end of service benefits

284,438

 

 

134,200

 

Asset retirement obligation

2,090,278

 

 

2,056,259

 

Total Non-Current Liabilities

90,970,527

 

 

88,530,131

 

 

 

 

Equity

 

 

Share capital

8,804

 

 

8,804

 

Share premium

101,777,058

 

 

101,777,058

 

Statutory reserve

680,643

 

 

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 period

37,367,631

 

 

3,894,041

 

 

 

 

Adjustments for:

 

 

Depreciation of property, plant and equipment

6,325,285

 

 

6,244,880

 

Interest on borrowings

8,952,688

 

 

9,225,972

 

Interest on lease liabilities

1,543,341

 

 

1,515,936

 

Provision for employees' end of services benefits

180,867

 

 

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 expense

34,019

 

 

32,930

 

Expected credit losses of trade accounts receivables

3,313,538

 

Nil

 

Write-off of trade accounts receivables

927,519

 

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 liabilities

272,878

 

 

2,458,296

 

Payment of employees' end of services benefits

(30,629

)

 

Nil

 

Net cash flows generated from operating activities

27,544,929

 

 

28,442,937

 

 

 

 

Cash Flow from Investing Activities

 

 

 

 

 

Amount withdrawn from restricted bank account

152,261

 

 

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 borrowings

Nil

 

 

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 equivalents

2,761,407

 

 

(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

 

CONTACT: Investor Contact KCSA Strategic Communications Valter Pinto, Managing Director +1 212-896-1254 BROG@kcsa.com


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