Brooge Energy (BROG)2023-04-25 16:00Financial Obligations and Structure - BPGIC's obligations under the Bond Financing Facility are secured by substantially all of its assets, with a maximum issue size of 200 million [195]. - The Phase II Financing Facility amounts to 8,500,000 to cover interest payments due on the first interest payment date [223]. - The company’s capital structure includes shareholders' equity and debt, with borrowings under the Financing Facilities disclosed in the audited financial information for the period ended December 31, 2022 [1161]. - Total borrowings as of December 31, 2022, amounted to 182.78 million in 2021, representing a reduction of approximately 4.5% [1175]. - Lease liabilities increased to 89.78 million in 2021, reflecting a growth of about 1.2% [1175]. - Accounts payable and other payables (excluding accrued interest) rose to 86.30 million in 2021, indicating an increase of approximately 8.5% [1175]. - Total due from related parties decreased slightly to 358.86 million in 2021, a decline of about 0.2% [1175]. Operational Risks and Challenges - The Company expects a large portion of future expenses related to the operation of the BPGIC Terminal to be relatively fixed, impacting profit margins if costs change [176]. - If the Company is unable to maintain its margins, it could have a material adverse effect on its business and financial condition [179]. - The Company relies on third-party vendors for its information technology systems, which could pose risks if these vendors cease operations or fail to meet the Company's needs [180]. - The Company’s business continuity procedures may not adequately prevent or mitigate network failures or disruptions [180]. - The Company’s profit margins could be affected by wage increases before it can amend its storage and ancillary service fees [177]. Compliance and Reporting - The Company has not filed required Annual Reports on Form 20-F for fiscal years ended December 31, 2021, and December 31, 2022, due to an ongoing investigation by the SEC [189]. - The Company is classified as an emerging growth company and may take advantage of reduced reporting requirements under the JOBS Act until it no longer meets the criteria [193]. - The company’s financial reporting is prepared in accordance with International Financial Reporting Standards [185]. Insurance and Risk Management - The company maintains a comprehensive insurance program covering property damage, business interruption, and various liabilities, ensuring adequate protection for its operations [1176]. - Premiums for the insurance program are allocated based on insured values and claims history, ensuring compliance with statutory requirements [1177]. Strategic Projects - The company is focused on developing a Green Hydrogen and Green Ammonia Project in Abu Dhabi, utilizing solar power for renewable fuel production [221]. - The Phase I of the BPGIC Terminal consists of 14 oil storage tanks with an aggregate capacity of approximately 0.399 million m [227]. Currency and Liquidity Management - The company does not anticipate changes in interest rates affecting its bonds, as they are not linked to fluctuating rates [1163]. - The company’s contracts, cash activities, and financing arrangements are primarily denominated in US dollars or AED, minimizing currency risk [1169]. - The company is managing liquidity risk through a recurring liquidity planning tool that considers projected financing requirements during the construction phase [1170]. Customer and Credit Risk - The company has a low credit risk exposure with only five customers as of December 31, 2022, and the expected credit loss on trade and other receivables is considered insignificant for 2022 [1166]. - The company has entered into multiple commercial storage agreements with various customers, enhancing its operational capacity [262].