Brooge Energy Limited

For the first six months of 2023, Brooge Energy reported revenue of $62.9 million, up 122% from $28.4 million in the first six months of 2022. Gross profit was $51.8 million, an increase of 191% from $17.8 million, and gross margin improved to 82% from 63% year over year. Net profit was $37.4 million, or $0.42 per basic and diluted share, versus $3.9 million, or $0.04 per share, in the prior-year period. As of June 30, 2023, cash and cash equivalents were $3.7 million and restricted bank balance was $15.7 million; total equity attributable to shareholders was $142.5 million, up from $105.1 million at December 31, 2022. No formal next-quarter or full-year financial guidance was provided; management instead discussed ongoing storage expansion, a green ammonia project, and the early-stage Gulf Navigation proposal.

Paul Ditchburn’s tone was positive about the half-year results and confident in the company’s core Fujairah terminal business. He said the company plans to keep building on its success by expanding storage capacity, which he believes could make Brooge one of the largest independent oil storage facilities in Fujairah. He also emphasized that the company is still pursuing strategic partnerships and growth initiatives, while noting the board has formed an office of the CEO during the search for a permanent CEO.

Paul Ditchburn highlighted the sharp improvement in first-half financial performance, citing $62.9 million in revenue, $51.8 million in gross profit, 82% gross margin, and $37.4 million in net profit. He linked the gross profit gain mainly to higher storage rates and noted the company provided 1,001,388 cubic meters of storage and related services. On the balance sheet, he cited $3.7 million in cash and cash equivalents, $15.7 million in restricted bank balance, and $142.5 million of total equity attributable to shareholders at June 30, 2023.

The main question addressed in the Q&A was how public warrant holders would be treated if the Gulf Navigation proposal moved forward, especially in a cash deal below $11.50 per share. Management said the proposal was only just received and remains in the initial stage of evaluation, so warrant treatment has not been determined and will be discussed with advisors if a transaction occurs. Management also stressed that there is no guarantee the company will accept the proposal and that any deal would still require due diligence and regulatory approvals.