Brooge Energy

US: BROG

$1104.6m market cap

$10.08 last close

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.

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 two 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 late 2017 and Phase II is expected to be completed by the end of 2020. The company is looking to develop a Phase III, which would increase its storage capacity by 3.5x. Our valuation is based on a blend of DCF, EV/EBITDA and P/E approaches, resulting in a valuation of $11.00/share.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 36.0 30.0 16.0 20.1 50.1 28.8
2019A 44.0 (65.0) 25.0 28.6 35.2 16.8
2020E 45.0 38.0 17.0 15.5 65.0 48.0
2021E 123.0 113.0 86.0 78.9 12.8 10.7
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, as oil demand slumped in H120.

Last updated on 24/09/2020
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Sector
Oil & gas
Share price graph
Balance sheet
Forecast net debt (US$m) 174
Forecast gearing ratio (%) 123
Price performance
%
1m
3m
12m
Actual 9.9 5.0 (1.5)
Relative* 15.4 1.6 (8.9)
52-week high/low US$13.0/US$7.8
*% relative to local index
Key management
Nico Paardenkooper CEO
Saleh Yammout CFO