Brooge Energy Limited reports developments tied to its Cayman Islands-based infrastructure business and its clean petroleum and energy products, biofuels and crude oil storage and related services. Company news has centered on the completed sale of interests in BPGIC FZE and BPGIC Phase III FZE, shareholder approvals, distribution mechanics and the declaration of a dividend related to transaction proceeds.
Recurring updates also cover governance matters, capital-structure disclosures, operating and financial results, and corporate-status actions, including the company’s voluntary delisting and SEC deregistration process.
Brooge Energy Ltd. (NASDAQ: BROG) announced positive results from a feasibility study for its Phase III oil storage and refinery expansion in Fujairah. The study confirms the project's financial viability, targeting a 2.5 million cbm oil storage facility and a 25,000 bpd modular refinery, with operations expected by 2023. The expansion will cement Brooge Energy as the largest independent oil storage provider in the region. Key advantages include strategic location and technology compliance with IMO 2020 standards, driving sustainable storage and refinery demand.
Brooge Energy Ltd (NASDAQ: BROG) has applied for a permit to begin testing its Phase II storage facility, located in Fujairah, UAE, following the completion of construction. This facility is fully contracted and will allow Brooge Energy to start receiving advanced storage fees, enhancing revenues in the latter half of 2021. Once operational, it will become the region's second-largest independent storage operator, with a total capacity of approximately 1 million cubic meters (6.3 million barrels). The demand for oil storage remains high, positioning the company favorably.
Brooge Energy Ltd. (NASDAQ: BROG) has announced a 25,000 bpd modular refinery through its subsidiary, BPGIC, via a Refinery Agreement with an oil trading company. BPGIC will sublease land and operate the refinery, earning tolling fees on a 20-year contract. The refinery will produce Very Low Sulphur Fuel Oil compliant with IMO 2020, supporting the UAE's increasing oil production capacity. CEO Nicolaas L. Paardenkooper emphasizes this partnership mitigates financial risks while enhancing revenue potential at favorable EBITDA margins.
Brooge Energy Ltd. (NASDAQ: BROG) announced successful renewals of fixed lease contracts for 233,072 cbm of its Phase I storage capacity, with prices increasing by 70% compared to previous contracts. The renewals include three-year terms for 190,072 cbm with two clients and a separate 43,000 cbm contract with another client. The company's CEO emphasized strong demand in Fujairah, highlighting the region's growing significance in crude oil production and refining capacity.
Brooge Energy Ltd. (NASDAQ: BROG) announced the appointment of Nariman Karbhari and Tony Boutros as independent board members effective May 16, 2021. Both will serve on the Audit Committee, with Boutros as Chairman. CEO Nicolaas L. Paardenkooper expressed enthusiasm for their expertise, which is expected to guide the company's growth and enhance corporate governance. The appointment follows the departure of Abu Bakar Chowdhury, who is pursuing other opportunities. Brooge Energy is positioned in a strategic location for midstream oil storage services near the Strait of Hormuz.
Brooge Energy Ltd. (NASDAQ: BROG) announced a shelf registration statement with the SEC on April 19, 2021, for a proposed public offering of ordinary shares. This offering aims to fund the construction of the Phase III project, potentially increasing storage capacity by up to 3.5 million m3. If effective, the registration statement could allow the sale of up to US$500 million in various securities. The final terms of the offering will be detailed in a subsequent prospectus supplement.
Brooge Energy Ltd. (BROG) reported a net income of $17.2 million for 2020, a significant recovery from a $75.3 million loss in 2019. Earnings per share improved to $0.19 from a loss of $0.94. The company completed a $200 million bond issuance to fund ongoing capital expenditures for its new Phase II oil storage facility, expected to expand capacity by 600,000 cbm. However, revenue declined to $41.8 million from $44.1 million, primarily due to reduced ancillary services. Cash and bank balances stood at $47.9 million as of year-end.
Brooge Energy Ltd. (NASDAQ: BROG) announced a significant milestone of achieving 3.75 million hours without safety issues, including zero long-term injuries and zero product spills. The CEO emphasized their commitment to safety, which has been maintained since Phase I operations began in late 2017. As the company approaches completion of its Phase II facility, it continues to expand its storage capacity for clean petroleum products and crude oil. Brooge Energy's strategic location in the UAE enhances its market position.
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Brooge Energy Ltd., a midstream oil storage provider, has engaged Ernst & Young to conduct a feasibility study for its Phase III oil storage facility located in the UAE. This facility aims to increase oil storage capacity by 3.5 million m³ (22 million barrels), positioning Brooge Energy as the largest oil storage provider in the Port of Fujairah. Phase III will utilize advanced technology and build upon the specifications from its previous phases, addressing the global oil storage shortage.