Brooge Energy Ltd, a Cayman Islands-based infrastructure provider, which is currently engaged in clean petroleum products and biofuels and crude oil storage and related services, has announced its financial results for the year ending December 31, 2022. Management will host a conference call on Thursday, May 4th at 10 a.m. ET and requests that all questions be submitted to BROG@KCSA.com by Sunday, April 30th at 8 p.m. ET.
”We are pleased to report revenue growth of 95 percent year-over-year for 2022 and a net profit of USD $27.3 million,” said Lina Salah Saheb, interim chief executive officer of Brooge Energy. “We are providing revenue guidance for 2023 of over USD $125 million based on near 100 percent Phase I and II storage capacity. Going forward we will continue to make progress on our Green Hydrogen and Green Ammonia Project and on the Phase III expansion as well as explore additional partnerships.”
Ms. Saheb was appointed as the interim chief executive officer of Brooge Energy and its subsidiaries in December 2022 and is diligently working to continue the vision of the Company. Since her appointment, Ms. Saheb has put in extraordinary efforts in leading the team to conclude the issuance of six financial statements within the stipulated extension provided by Nasdaq. These financial statements included: three audited restated financial statements for the years ended 2018 to 2020, two audited financial statements for the years ended 2021 and 2022, and the interim financial statements for the period ended June 30, 2022. This was following the recommendation of the Audit Committee of the Board of Directors.
Financial Results for the Year Ending December 31, 2022
In 2022, Brooge Energy provided storage capacity of 1,001,388 cbm and related services to numerous oil traders and producers generating revenue of USD $81.5 million in 2022, a 95 percent year-over-year increase, as compared to USD $41.8 million in 2021. This significant increase is mainly attributable to the commencement of Phase II storage and services in September 2021, which were available during the year in 2022, as well as signing new contracts at higher storage rates.
Gross profit for 2022 totalled USD $56.8 million, an increase of 112 percent, as compared to USD $26.8 million in 2021. Gross profit margin improved by 70 percent in 2022 as compared to 64 percent in 2021.
For the year ending December 31, 2022 the Company reported a net profit of USD $27.2 million or $0.31 per basic and diluted share, an increase of 6 percent, as compared to USD $25.7 million or $0.29 per basic and diluted share in 2021, predominately due to an increase in non-cash change in estimated fair value of derivative warrant liability, increase in general and administrative expenses, and increase in finance costs related to Phase 2 construction.
Operations Update and Highlights:
The success of Phase I and II, led the Company to consider expanding its storage facilities where it has conducted a feasibility study and commenced early preparation works on Fujairah Phase III. Upon successful expansion of the Phase III facility, this would position the Company as one of the largest independent oil storage facility in Fujairah, with capacity to store clean petroleum products, middle distillates, high and low sulphur fuel oil as well as crude oil.
The Company is also in the advanced stages of planning a Green Hydrogen and Green Ammonia Project, which aims to produce up to 700,000 MT of green ammonia per annum once fully completed. The Green Hydrogen and Green Ammonia Project is one of the first privately owned company green ammonia projects in the United Arab Emirates and the region, led by Brooge Energy Limited’s 100 percent 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.
Earlier in 2023, the Company announced a partnership through the Company’s subsidiary Brooge Renewable Energy (“BRE”) with Siemens Energy (“SE”), one of the world’s largest energy technology companies, to build a photovoltaic (“PV”) solar farm to supply BRE’s Green Hydrogen and Green Ammonia project in Abu Dhabi, United Arab Emirates. BRE and SE partnership is aimed to build up to 650 MW solar PV plant to supply BRE’s planned Phase 1 of the green ammonia project with renewable energy. Siemens Energy will serve as the Technical Partner to Brooge and exclusive provider of solutions including engineering, design procurement, and construction of up to a 650 MW solar PV plant including grid connection and operation and maintenance services. The two companies will partner to obtain the necessary project approvals from governmental agencies as a first step of the project targeting construction commencement in the second half of 2024.
On March 28, 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.
Outlook for 2023
At year end 2022, the Company had five oil storage customers providing diversification of revenue with longer term contracts and renewal options. Based on this information and near 100 percent Take or Pay contracted storage capacity of Phase I and II during 2023, management is providing revenue guidance for over USD $125 million for 2023, an increase of at least 53 percent year-over-year.
Conference Call Details
Date: Thursday, May 4, 2023
Time: 10:00 a.m. Eastern Time
Webcast: www.viavid.webcasts.com/starthere.jsp?ei=1610239&tp_key=6e19069490
Dial-In Number: 1-888-886-7786 or 1-416-764-8658
UAE Toll Free: 800035703632
Conference ID: 60400024
Deadline to Submit Questions: Sunday, April 30, 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: 60400024)
For more information visit www.broogeenergy.com
