Brooge Energy Ltd. (“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”) 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”), today issued a letter to
shareholders from its CEO, Nicolaas L. Paardenkooper.
Dear Shareholders,
2020 has been the most significant year of our
operating history, and a year of many ‘firsts’ for Brooge Energy as
we continue to grow our position as a leading oil storage provider
in the Port of Fujairah, UAE. 2020 was our first full year as a
public company, following our listing on the NASDAQ in December
2019. It was also the first year during which we secured several
new contracts in Phase I at a higher rate than previous contracts
which will generate higher margins from fixed storage fees. More
recently, in the fourth quarter, we successfully raised $200
million in a bond issuance to clean our Phase I loans, establish a
broader investors base and fund the build out of our Phase II
facility.
It was also the year we achieved significant
milestones with our Phase III development plans by finalizing the
Front End Engineering Designs and commencing pre-construction work,
including the Soil Investigation and Environmental Impact
Assessment (“EIA”) report.
While we are pleased to hit these milestones and
proud of our progress this year, we have also faced headwinds
resulting from the COVID-19 pandemic. When the situation started to
unfold earlier in the year, we demonstrated our operational
resilience as Phase I continued to operate unimpeded by COVID-19
restrictions. This was largely achieved due to the
advanced-technology and automated features that we invested in when
building out the terminals, which allowed us to operate at full
capacity despite the reduced workforce. We also continued with the
build out of our Phase II storage facility, which is being built to
the same award-winning specifications as our Phase I facility. The
Phase II facility will expand our storage capabilities to include
crude oil, as well as adding more capacity for fuel oil and clean
products. While for most of the year Phase II’s construction was
not significantly impacted by the virus, we received a confirmation
that with the second wave of the pandemic our contractors have
experienced supply chain disruptions that have delayed the arrival
of manufacturing equipment and other parts necessary for the
completion of the build out.
We are now working hard to have the construction
of the storage facility completed by the end of Q1 2021 and for the
facility to operate at, or near, full capacity by the end of Q2
2021. Phase II is fully contracted, and the signed agreements with
customers are not impacted by the launch delay. While we are
disappointed about the delay of Phase II’s launch, we are confident
that our medium-term trajectory will enable us to generate
significantly higher revenues as our capacity expands. After
completion of Phase II, 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.
We believe we have made strong progress
throughout 2020, despite the numerous challenges. We are now
positioned as a key independent storage provider in Fujairah, UAE,
one of the largest global oil export hubs, with capacity to store
clean petroleum products and fuel oil using some of the latest
technology to maximize company performance and efficiency, while
reducing operating costs. Through the development of our Phase II
and Phase III facilities, we are also building capacity to store
crude oil using similar technology.
As we approach 2021, we are excited about what
the future has in store for us. There is a global shortage of oil
storage space, and our terminals are in high demand by trading
companies that require reliable storage facilities. For trading
companies, our services are a necessary lynchpin in the oil supply
chain that facilitate their ability to trade physical oil. By
investing in the most advanced technology to create high speed
terminals, we have positioned BPGIC to capture demand from this
lucrative market. This strategy is enabling us to drive higher
margins as we have novated some of BPGIC’s contracts, with a total
geometric storage capacity of 233,074 cbm, to oil trading companies
at a premium to previous contracts, as announced in our press
releases dated December 7th and December 16th.
To support our growth strategy, we are
strengthening our Board of Directors and are pleased to announce
the appointment of two new Board members: Ms. Lina Saheb and Mr.
Bryant Edwards. Ms. Saheb is the Chief Strategy Officer at Brooge
and has over 13 years’ experience in business development roles. As
the Chief Strategy Officer, she has been instrumental in
spearheading the expansion and future growth of Brooge and plays a
vital role in guiding our strategy, corporate development,
alliances and partnerships. Bryant Edwards joins the Board as an
Independent Director. Mr. Edwards is an accomplished professional
with a 35 year legal career, including leading the Latham &
Watkins’ expansion in Europe from 2000 to 2008, in the Middle East
from 2008 to 2012, and in East Asia from 2012 to 2017. I am
delighted to strengthen our Board with the appointment of these
talented and experienced individuals who will provide invaluable
strategic guidance using their unique skills and knowledge.
We are at an exciting stage of our evolution,
and we value your confidence and support as we pursue our growth
strategy. By following this course, we are confident that we will
expand our revenues even further, and generate improved margins as
we continue to establish Brooge as one of the region’s most
prominent oil storage providers.
Sincerely,
Nicolaas L. Paardenkooper Chief Executive
Officer
About Brooge Energy
LimitedBrooge 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
Forward-Looking StatementsThis
press release contains “forward-looking statements” within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, that involve risks and
uncertainties concerning BPGIC’s, BPGIC III’s and Brooge Energy’s
expected financial performance, as well as their strategic and
operational plans. The actual results may differ materially from
expectations, estimates and projections due to a number of risks
and uncertainties and, consequently, you should not rely on these
forward looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “would,” “could,”
“should,” “believes,” “predicts,” “potential,” “continue,” and
similar expressions are intended to identify such forward-looking
statements. These risks and uncertainties include, but are not
limited to: (1) the ultimate geographic spread, duration and
severity of the coronavirus outbreak and the effectiveness of
actions taken, or actions that may be taken, by governmental
authorities to contain the outbreak or ameliorate its effects; (2)
Brooge Energy’s and its subsidiaries’ ability to obtain financing
for Phase III on commercially reasonable terms; (3) Brooge Energy’s
and its subsidiaries’ ability to negotiate and enter into
development and offtake agreements on commercially reasonable
terms; (4) the results of technical and design feasibility studies,
including the Soil Investigation and the Environmental Impact
Assessment report for Phase III; (5) the loss of any end-users; (6)
changes in customer demand with respect to ancillary services
provided by Brooge Energy and its subsidiaries including
throughput, blending, heating, and intertank transfers; (7) Brooge
Energy’s and its subsidiaries’ ability to effectively manage the
risks and expenses associated with the construction of Phase II,
Phase III and other growth and expansion projects; and (8) other
risks and uncertainties indicated from time to time in filings with
or submissions to the SEC by Brooge Energy. Readers are referred to
the most recent reports filed with or furnished to the SEC by
Brooge Energy. Readers are cautioned not to place undue reliance
upon any forward-looking statements, which speak only as of the
date made, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor ContactKCSA Strategic
CommunicationsValter Pinto / Elizabeth Barker+1 212-896-1254 or +1
212-896-1203BROG@kcsa.com
Brooge Energy (NASDAQ:BROG)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Brooge Energy (NASDAQ:BROG)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024