Brooge Energy reports record revenue of $44 million

Storage became a serious issue as demand plummeted due to the coronavirus pandemic

Brooge, Storage, Midstream, Fujairah

Brooge Energy Limited made $44 million in revenue for the full year 2019, an increase of 23% compared to $36 million in the full year 2018. Its gross profit for 2019 was $34 million, compared to $26 million for 2018.

"Our impressive 23% revenue growth for 2019 was driven by our multi-year agreement with an offtake customer for our Phase I terminals, which operated at full capacity throughout the whole year." said Nicolaas L. Paardenkooper, Chief Executive Officer of Brooge Energy. "Furthermore, we have secured a multi-year contract for 100% of our Phase II storage facility with the same customer. Phase II is expected to be operational and in a position to start generating significant revenues starting in the second half of 2020. The launch of our Phase II operations will also expand our storage capabilities to now include crude oil, as well as adding more capacity for fuel oil and clean products."

The company plans to have eight new oil storage tanks in Fujairah fully operational by the end of the year, and reported that a single customer would lease all of the additional capacity. The new capacity totals 3.8 million barrels of crude and refined products.

"The disruption to oil markets caused by COVID-19 showed the high strategic value of having well-located storage assets, and we are pleased that our Phase I facilities remain fully operational at this time, having experienced limited impact from the COVID-19 pandemic," he added.

The company recently signed an agreement to begin Front End Engineering Design study and is in "advanced negotiations" with its customer for the Phase III capacity. "Once Phase III is complete, which is anticipated to be in late 2022, we will have storage capacity for approximately 4.5 million m3," Paardenkooper added.

Brooge also has plans to build a refinery for low-sulphur fuel oil with a 25,000 barrel per day capacity.

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