Brooge Energy Reports Revenue of $23 million for the Six Months Ending June 30, 2020

Management hosted a conference call on Monday, November 30, 2020 at 8 a.m. ET

NEW YORK, Nov. 30, 2020 (GLOBE NEWSWIRE) — Brooge Energy Limited (“Brooge Energy” or the “Company”) (NASDAQ: 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”), today announced its financial results for the six months ending June 30, 2020.

2020 Half-Year Financial Highlights:

Nicolaas L. Paardenkooper, Chief Executive Officer of Brooge Energy and BPGIC, said, “We continued to generate strong and consistent revenue throughout the first half of 2020 from our Phase I facility, which is operating at full capacity. Ancillary services contributed 47% of total revenue in H1 2020 (46% in H1 2019), with the balance coming from fixed, storage revenue. We continue to see a global shortage of available oil storage facilities worldwide, with facilities in The Middle East especially in high demand due to the key role it plays in oil production and its location across multiple trade routes. These market dynamics, along with our high-tech, high-speed facilities, and international award winning operational track record led us to leasing approximately one third of the Phase I capacity to a Super Major in May 2020, and additional contracts with more favorable terms, and gradual increase in fixed revenues of up to 50% starting November 2020.”

Financial Results for the Half-Year Ended June 30, 2020:

For the period ended 30 June 2020

Revenue for the six-month period ended June 30, 2020 was $23 million, compared to $22 million in the six-month period ended June 30, 2019. To date, all of the Company’s revenues are comprised of fixed leasing and variable ancillary services for its Phase I storage facility which was operating at 100% capacity for both the six-month period ended June 30, 2020 and the six-month period ended June 30, 2019.

Gross profit for the six-month period ended June 30, 2020 was $17 million, resulting in gross margin of 73%, compared to $17 million, or a gross margin of 78%, for the six-month period ended June 30, 2019. The decrease in gross margin is mainly due to increases in operations staff salary costs and costs associated with the new disaster management charges implemented by the Fujairah Oil Industry Zone (FOIZ).

EBITDA for the six-month period ended June 30, 2020 was $17 million as compared to $18.8 million for the same period the year prior.

Net profit for the six-month period ended June 30, 2020 was $16 million compared to a profit of $12 million in the six-month period ended June 30, 2019. For the period ended June, 30 2020, a derivative warrant liability of $10.4 million (31 December 2019: $15.7 million) was recorded, which resulted in a gain on revaluation of derivative warrant liability for the six-month period ended June 30, 2020 of $5.3 million as compared nil for the same period the year prior.

Basic and diluted earnings per share was $0.184 in the six-month period ended June 30, 2020, compared with earnings per share of $0.20 in the six-month period ended June 30, 2019.

Balance Sheet and Liquidity:
The Company had cash and cash equivalents of $1 million as of June 30, 2020, compared with $20 million as of December 31, 2019.

Subsequent to the period end, Brooge completed the issuance of a USD $200 million 5-year senior secured bond with a borrowing limit of USD$ 250 million in the Nordic bond market. The bond, which will mature in September 2025, provides a flexible financial platform to support our future growth agenda and marks a key milestone for the Company in entering the international bond market.

Conference Call and Webcast Information

A dial-in replay of the call will also be available, to those interested, until December 7, 2020. To access the replay, dial +1 844-512-2921 (United States) or +1 412-317-6671 (International) and enter replay pin number: 13713748.

About Brooge Energy Limited

Brooge Energy conducts all of its business and operations through its wholly-owned subsidiaries, Brooge Petroleum and Gas Investment Company FZE (“BPGIC”) and Brooge Petroleum and Gas Investment Company Phase III FZE (“BPGIC III”), Fujairah Free Zone Entities. 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 oil storage business differentiates itself from competitors by providing customers with fast order processing times, excellent customer service and high accuracy blending services with low oil losses. For more information please visit at www.broogeenergy.com

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION