The Company is currently experiencing minimal impact on ongoing business and operations during this period
NEW YORK, March 24, 2020 (GLOBE NEWSWIRE) -- Brooge Holdings Limited (“Brooge Holdings” or the “Company”) (BROG), a midstream oil storage and service provider strategically located outside the Strait of Hormuz, adjacent to the Port of Fujairah in the United Arab Emirates (“UAE”) through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company FZE (“BPGIC”), announced today that the Company’s business and operations are continuing largely uninterrupted by the coronavirus (COVID-19) outbreak and commodity price volatility at this time.
The Company’s high-tech terminal with automatic solutions enables it to safely operate the facility with a limited number of staff. The Company’s core business is oil storage and handling, which continues to be in high demand due to the volatility in oil prices. The Company enters into multi-year take-or-pay storage agreements and does not have significant commodity price risk as it does not own any of the petroleum products it stores.
Nico Paardenkooper, CEO of Brooge Holdings, commented, “While we recognize this is an evolving situation, we have not yet experienced significant disruption to our oil storage business, and believe that our automated facilities, which rely on low numbers of employees, will continue to operate largely unimpeded by this global health crisis. The safety of our employees remains a top priority for us at this time, and we have implemented a series of measures to reduce the risk of COVID-19 transmission in the facilities. Following the sharp decline in oil prices in recent weeks, global demand for crude and refined products storage has increased. We therefore do not anticipate any negative impact on demand for our storage solutions as a result of this market volatility.”
BPGIC is a key independent storage provider in Fujairah, UAE, conveniently situated in the East coast port of Fujairah on the Gulf of Oman which owns capacity to store Clean Petroleum Products and Fuel Oil using some of the latest technology to maximize company performance and efficiency, while reducing operating costs and is developing capacity to store crude oil using similar technology.
About Brooge Holdings Limited
Brooge Holdings Limited is an exempted company incorporated under the laws of the Cayman Islands. Brooge Holdings conducts all of its business and operations through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company FZE (“BPGIC”), a Fujairah Free Zone Entity. BPGIC is a midstream oil storage and service provider strategically located outside the Strait of Hormuz adjacent to the Port of Fujairah in the United Arab Emirates. BPGIC’s oil storage business differentiates itself from competitors by providing its customers with fast order processing times, excellent customer service and high accuracy blending services with low oil losses. For more information please visit www.broogeholdings.com.
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties concerning BPGIC’s and Brooge Holdings’ expected financial performance, as well as their strategic and operational plans. The actual results may differ materially from expectations, estimates and projections due to a number of risks and uncertainties and, consequently, you should not rely on these forward looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These risks and uncertainties include, but are not limited to: (1) the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; (2) BPGIC’s ability to obtain financing for Phase III on commercially reasonable terms; (3) BPGIC’s ability to negotiate and enter into development and offtake agreements on commercially reasonable terms; (4) the results of technical and design feasibility studies; (5) the loss of any end-users; (6) changes in customer demand with respect to ancillary services provided by BPGIC including throughput, blending, heating, and intertank transfers; (7) BPGIC’s ability to effectively manage the risks and expenses associated with the construction of Phase II, Phase III and other growth and expansion projects; and (8) other risks and uncertainties indicated from time to time in filings with or submissions to the SEC by Brooge Holdings. Readers are referred to the most recent reports filed with or furnished to the SEC by Brooge Holdings. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Nicolaas Paardenkooper, Chief Executive Officer
Brooge Holdings Limited
KCSA Strategic Communications
Valter Pinto / Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203