Brooge Energy (BROGF) H2 2024 earnings summary

Executive summary

• Reported net profit of $4.4 million for 2024, reversing a $48.3 million loss in 2023, driven by lower tank utilization but reduced one-off charges and settlements.

• Revenue declined 28% year-over-year to $76.5 million due to lower tank capacity utilization and sublease costs; gross profit fell to $46.5 million.

• Adjusted EBITDA was $54.3 million (71% margin), down from $79.7 million (75%) in 2023, mainly due to revenue decline.

• The company remains in technical breach of bond covenants, with $148.9 million in bonds classified as current liabilities and a $309.3 million working capital deficit.

• Management is negotiating with bondholders and lenders to restructure or reschedule the upcoming $144 million bullet bond repayment due September 2025.

Financial highlights

• Revenue: $76.5 million in 2024 (down from $105.7 million in 2023); storage rental income accounted for 93% of revenue.

• Gross profit: $46.5 million (down from $81.9 million in 2023); gross margin impacted by sublease costs and lower utilization.

• Net profit: $4.4 million in 2024 vs. $48.3 million net loss in 2023; 2023 loss included $55.7 million litigation settlement and $5 million SEC penalty.

• Adjusted EBITDA: $54.3 million (71% of revenue), down from $79.7 million (75%) in 2023.

• Cash and equivalents: $28.8 million at year-end 2024; capital expenditures were $5.5 million.

Outlook and guidance

• Management expects stable operating margins until new projects (Phase III, Green Ammonia/Hydrogen) commence.

• Ongoing negotiations with bondholders and BIA for liability settlements are expected to improve liquidity and support future growth.

• Long-term contracts are in place to generate steady cash flows.