Brooge Energy

US: BROG

Market Cap$1000.5m

Last Close $9.13

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 (BROG) is an independent oil and refined oil products storage and service provider located in the Port of Fujairah, in the UAE. The company is initially 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 is expected to start in mid-2021. The company is preparing to raise equity capital for its Phase III, and this will increase oil storage capacity by 3.5x once operational (2023). In Q420 BROG diversified its customer base by signing new contracts (for 58% Phase I storage capacity) at premiums of 50% and 60% on fixed fee, benefiting from high oil storage demand. However, the low demand for ancillary services among new customers had a negative effect on revenue in FY20 and may affect revenue in FY21. Our valuation currently stands at $10.3/share.

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 15.2
2020A 42.0 29.0 17.0 19.5 46.8 21.7
2021E 68.0 54.0 29.0 26.4 34.6 25.7
2022E 130.0 112.0 88.0 80.0 11.4 9.8
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 21/06/2021
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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 2.5 (12.2) (3.9)
Relative* 0.8 (18.7) (29.5)
52-week high/low US$11.2/US$7.8
*% relative to local index
Key management
Nico Paardenkooper CEO
Saleh Yammout CFO