Brooge Energy

US: BROG

Market Cap$1014m

Last Close $9.25

Brooge Energy is an oil storage and service provider strategically located in the Port of Fujairah in the United Arab Emirates (UAE). Current storage capacity stands at 399,324m3 and will be increased by 602,064m3 once Phase II is completed.

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Investment summary

Brooge Energy is an independent oil and refined oil products storage and service provider located in the Port of Fujairah, in the UAE. The company is developing its terminal’s storage capacity in phases and differentiates itself from competitors by providing fast order processing times and high accuracy blending services with low oil losses using the latest technology. Phase I has been operational since 2017 and Phase II started operations in September 2021. Additionally, Brooge is moving towards Phase III with a positive feasibility study (preparing to secure project funding and contracts for storage capacity); this will increase oil storage capacity by 2.5x once operational (2023/24). In Q221 Brooge renewed contracts for 58% of its Phase I storage capacity at a 70% premium to the starting fixed lease storage price of H120 contracts, as it benefitted from high oil storage demand. We expect further increases in storage fees, that would support margin increase. Our valuation stands at $10.3/share (currently under revision post H121 results).

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 44.0 37.0 (75.0) (85.5) N/A 15.4
2020A 42.0 29.0 17.0 19.5 47.4 22.0
2021E 68.0 54.0 29.0 26.4 35.0 26.0
2022E 130.0 112.0 88.0 80.0 11.6 9.9
Industry outlook

The COVID-19 pandemic highlighted the importance of oil storage infrastructure and the vital role the business plays in the logistics and trading of crude oil and refined oil products.

Last updated on 20/10/2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 249
Forecast gearing ratio (%) 158
Price performance
%
1m
3m
12m
Actual 5.0 8.9 2.8
Relative* 0.9 3.8 (22.0)
52-week high/low US$11.2/US$8.2
*% relative to local index
Key management
Nico Paardenkooper CEO
Saleh Yammout CFO