|Over a week ago|
Brooge Energy expects to commence Phase II launch during 1H21 » 08:5312/2112/21/20
The company said,…
The company said, "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 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."
|Over a month ago|
Brooge Energy signs two new oil storage contracts for its Phase 1 facility » 17:3312/1612/16/20
Brooge Energy's wholly-owned subsidiary Brooge Petroleum and Gas Investment, or BPGIC, has signed offtake contracts with two regional oil trading companies for total geometric storage capacity of 104,074 cbm at a 60% premium to previous contracts. This follows other recent contracts for 129,000 cbm, which were announced on December 7. BPGIC will provide oil storage at its Phase I facility for a total of one year consisting of initial six month periods, plus additional six-month renewal periods, subject to mutual renewal, commencing in December. BPGIC is a key independent storage provider in Fujairah, UAE, situated in the East-coast port of Fujairah on the Gulf of Oman, which owns capacity to store clean petroleum products and fuel oil. Through the development of its Phase II and Phase III facilities, it is also building capacity to store crude oil using similar technology.
Brooge Energy signs three oil storage contracts for Phase I facility » 09:3012/0712/07/20
Brooge Energy announced…
Brooge Energy announced that BPGIC has signed offtake contracts with three regional oil trading companies for total geometric storage capacity of 129,000 cbm at a 50% premium to previous contracts. Under the terms of the contracts, BPGIC will provide oil storage at its Phase I facility for a total of one year consisting of initial six month periods, plus additional six-month renewal periods, subject to mutual renewal, commencing in November 2020.
|Over a quarter ago|
Fly Intel: Top five analyst initiations » 10:0608/1108/11/20
VVNT, BLPH, PAND, BROG, BLI
Catch up on today's…
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Vivint Smart Home (VVNT) initiated with an Equal Weight at Morgan Stanley. 2. Bellerophon (BLPH) initiated with a Buy at Jefferies. 3. Pandion Therapeutics (PAND) was initiated with an Overweight at Morgan Stanley and SVB Leerink, as well as with a Buy at Goldman Sachs. 4. Brooge Energy (BROG) initiated with an Outperform at RBC Capital. 5. Berkeley Lights (BLI) was initiated with an Overweight at JPMorgan, an Outperform at Cowen, and an Equal Weight at Morgan Stanley. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
Brooge Energy initiated with an Outperform at RBC Capital » 05:5008/1108/11/20
RBC Capital analyst…
RBC Capital analyst Elvira Scotto initiated coverage of Brooge Energy with an Outperform rating and $13 price target. Scotto believes Brooge can generate significant cash flow growth as liquids volumes through the Port of Fujairah grow, the analyst tells investors. The analyst also believes Brooge can return "substantial cash" to shareholders over time.
Brooge Energy commences hydrotesting for Phase II storage facility expansion » 08:5408/0608/06/20
Brooge Energy announced…
Brooge Energy announced it has commenced hydrotesting for its Phase II storage facility expansion, an important milestone that signifies the advanced stage of the terminal's development. With the commencement of all the necessary hydrotests, the development of the Phase II facility has now entered into some of the testing stages required of the construction process. Hydrotesting is considered a major milestone of this process confirming the tank integrity. Once Phase II construction is finalized, the facility will increase the Company's total geometric oil storage capacity to approximately 1 million m3 or 6.3 million barrels, from its current geometric capacity of approximately 400,000 m3, or 2.5 million barrels, and also enables the Company to offer crude oil storage using some of the latest technology to enhance Company performance and operational efficiency.
Brooge Energy completes basic design for Phase III facility » 09:1307/1507/15/20
Brooge Energy announced…
Brooge Energy announced MUC Oil & Gas Engineering Consultancy has issued the final basic design for the Company's planned Phase III oil storage terminals and refinery. In April 2020, the Company appointed MUC Oil & Gas Engineering Consultancy to complete the basic design and Front End Engineering Design study for its planned 180,000 bpd refinery and the Phase III oil storage facility in Fujairah, UAE. Completing the basic design progresses the Company's plan to develop up to 3.5 million m3 of storage capacity, the equivalent of 22 million barrels. The Company is targeting the Phase III facility to be operational in late 2022.
Brooge Energy LTD signs offtake agreement with oil trading company » 09:1105/0405/04/20
Brooge Energy Limited…
Brooge Energy Limited announced it has signed an offtake contract with an oil trading company which is one of the "Super major" oil companies in the world, to provide oil storage in Phase I for an initial six month period commencing on 28th April 2020. The contract is renewable for another six months subject to agreement from both parties
Brooge Energy names Syed Masood Ali acting CFO » 16:2904/2704/27/20
Brooge Energy Limited…
Brooge Energy Limited announced the appointment of Syed Masood Ali as Chief Financial Officer. Saleh Yammout, former CFO, is to continue working with the Company as a board member. Nico Paardenkooper, CEO of Brooge Energy, commented, "Syed brings to our senior management team an impressive corporate finance and international reporting background. As a newly public company, we will continue to bolster Brooge's team with talented professionals that have complementary experience and will support us in building value for our shareholders. With deep expertise and knowledge in all aspects of corporate finance, financial planning and financial governance, we believe Syed has the required leadership capabilities to help strategically manage our growth as Brooge enters a new chapter in its growth, with the upcoming launch of Phase II operations and our planned expansion of Phase III for which the FEED process has started."
Brooge Energy to temporarily delay issuance of first dividend » 07:5904/1304/13/20
Brooge Energy issued a…
Brooge Energy issued a letter to its shareholders from its CEO Nicolaas Paardenkooper. The letter said, "2020 is set to be a significant year for Brooge Energy as we expect to increase our storage capacity, accelerate revenue growth and further entrench our position as a leading oil storage provider in the Port of Fujairah, UAE, one of the largest global oil export hubs. Since listing on NASDAQ in late December 2019, we have been working hard toward our goal of more than doubling our oil storage capacity to 1,000,585 m3, which is expected to drive significant revenue growth starting at the end of this year. While we are excited about what this means for the business, we recognize that we are living through historic and extremely volatile times, with the effects being felt across international trade, the oil sector and capital markets, requiring companies across the world to embrace more prudent and conservative approaches to near-term business planning. We are committed to adapting to the extraordinary events of recent weeks to ensure Brooge Energy is well positioned to continue its strategy to build shareholder value over the next several years. We are certainly aware that the terminal industry is seeing strong demand; and other industry leaders have recently made public comments about the renewed search for oil storage. However, due to value at risk shock, the credit market has deteriorated at a time when the Company is in expansion mode. Therefore, as a precautionary measure, and to prudently preserve cash, Brooge Energy has decided to temporarily delay the issuance of dividend. As mentioned in our earlier press release, our existing Phase I facility is currently operating 'business as usual'. Looking ahead, our near-term priority is to complete construction of our Phase II facility, and to conclude the Front End Engineering Design process of our phase 3 expansion with up to 3.5 Million M3 storage capacity in Fujairah. To ensure these plans stay on track, it is vital that we keep a strong financial foundation as we build our leadership position and navigate prudently through the current extremely volatile global economic environment resulting from the COVID-19 pandemic whereby countries around the world are locked down. This is an extremely uncommon situation that most of us have never experienced in our lifetimes. While our business model is extremely resilient and is expected to continue to remain so, we recognize the need for a prudent approach to cash expenditure given the uncertainty in the market. For this reason, the Board of Directors, as fiduciaries of Brooge Energy, has decided to temporarily delay the issuance of the dividend, which was initially planned for Q1 2020, in the best interest of the Company as a result of the global crises that all businesses currently face. We are monitoring the ongoing situation closely and it is the intention of the Board of Directors and management to reinstate our quarterly dividend when this short-term global crisis has subsided. While we are extremely disappointed to delay the issuance of our first dividend, our management team and Board of Directors believe this is the most financially prudent strategy at this time to reduce our exposure to the volatile capital markets and to proactively prepare our Company to remain robust in the long-term. We did not make this decision lightly, and have done so only in light of the significant and still evolving impacts of the global pandemic in order to maintain financial discipline and flexibility as we consider the capital requirements to advance our growth strategy."