Brooge Energy - Equity raise planned for Phase III project

Brooge Energy (BROG) is preparing to raise equity capital for its Phase III oil storage facility. With the feasibility study almost complete, securing project funding would be the next step towards starting construction. Meanwhile, BROG’s Phase I operations are negatively affected by current low demand for ancillary services, despite high demand for oil storage. While this lowers our FY21 forecasts, the underlying long-term fundamentals are unaffected. Our updated valuation, based on Phase I and Phase II, using a blend of DCF, EV/EBITDA and P/E approaches, decreases to $10.3/share from $11.4/share.