Brooge Energy Ltd has announced its financial results for the year ending December 31, 2020.
Brooge Energy 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. Its wholly-owned subsidiaries are Brooge Petroleum and Gas Investment Company FZE (BPGIC) and Brooge Petroleum and Gas Investment Company Phase III FZE (BPGIC III).
Nicolaas L Paardenkooper, CEO of Brooge Energy and BPGIC, said: “In 2020, we continued to operate Phase I of our operational footprint at full capacity yielding favourable margins and profitability during the year.
“The midstream sector continues to be of significant strategic importance, supporting the infrastructure and storage needs of the oil industry and ultimately allowing the market to work more efficiently. During the year we were also able to complete the issuance of $200 million in proceeds from a bond offering, part of which was used towards construction of Phase II.”
He added: “We expect Phase II construction to be completed in Q2 2021. Phase II is fully contracted and after completion, our storage capacity will be expanded by approximately 600,000 cbm, which equates to 3.8 million barrels. This increases the total capacity of the BPGIC Terminals to approximately one million cubic meters, or the equivalent of 6.3 million barrels. By this point, we will be the second largest non-captive storage operator in Fujairah.”
Phase II construction to be completed in Q2 2021 and will operate at, or near, full capacity by Q3 2021. Phase II is fully contracted, expanding storage capacity by approximately 600,000 cbm, which equates to 3.8 million barrels.
Phase III will commence construction which will expand capacity by up to 3.5 million m3 of storage capacity in Fujairah.
Revenue for the year ended December 31, 2020 decreased to $41.8 million as compared to $44.1 million for the same period ended December 31, 2019 primarily due to ancillary revenue in 2020 decreasing by $5.1 million to $14.9 million as compared to $20.1 million in 2019.
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