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Brooge Energy Ltd Q2 2024 Financial Report: Revenue Plummets & Losses Mount

$BROG
Form 6-K
Filed on: 2025-01-06
Source
Brooge Energy Ltd Q2 2024 Financial Report: Revenue Plummets & Losses Mount

Based on the extracted financial report data for Brooge Energy Ltd (CIK: 0001774983), here are the key insights and information:

Financial Performance (for the period ending June 30, 2024, and June 30, 2023):

  • Revenue:
  • Q2 2024: $30,237,094
  • Q2 2023: $62,912,327
  • Cost of Sales:
  • Q2 2024: $12,991,029
  • Q2 2023: $11,142,519
  • Gross Profit:
  • Q2 2024: $17,246,065
  • Q2 2023: $51,769,808
  • Other Income:
  • Q2 2024: $124,601
  • Q2 2023: $122,516
  • General and Administrative Expenses:
  • Q2 2024: $8,184,740
  • Q2 2023: $11,984,485
  • Finance Costs:
  • Q2 2024: $12,680,896
  • Q2 2023: $10,604,446
  • Net Profit/Loss:
  • Q2 2024: -$3,520,681
  • Q2 2023: $37,367,631

Earnings Per Share:

  • Diluted Earnings/Loss Per Share:
  • Q2 2024: -$0.04
  • Q2 2023: $0.42

Adjusted EBITDA:

  • Adjusted EBITDA:
  • Q2 2024: $21,051,838
  • Q2 2023: $50,399,783

Cash Flow Analysis:

  • Cash and Cash Equivalents:
  • End of Q2 2024: $4,094,160
  • End of Q2 2023: $7,718,655
  • Cash Flows from Operating Activities:
  • Q2 2024: $15,160,853
  • Q2 2023: $27,544,929

Balance Sheet Highlights (as of June 30, 2024):

  • Total Assets: $476,680,336
  • Total Liabilities: $423,222,520
  • Total Equity: $53,458,816

Observations:

  1. Revenue Decline: There was a significant decline in revenue from Q2 2023 to Q2 2024, dropping by approximately 52% which indicates a potential decrease in market demand or operational challenges.
  2. Cost Management: Despite the drop in revenue, the cost of sales increased, suggesting that the company may have faced higher operational costs or inefficiencies.
  3. Loss Position: The company reported a net loss in Q2 2024, contrasting sharply with the profit reported in Q2 2023. This shift indicates a substantial deterioration in profitability.
  4. Cash Reserves: The company’s cash position decreased significantly, which may affect its liquidity and ability to fund operations or investments.
  5. Increased Finance Costs: The finance costs rose notably, which could reflect increased borrowing costs or additional financing activities.
  6. EBITDA Growth: Despite the losses and revenue decline, the adjusted EBITDA remained positive, indicating that the core operations may still be generating cash before interest, taxes, and other non-cash expenses.

Conclusion:

Brooge Energy Ltd is facing significant challenges as reflected in its Q2 2024 financial results, notably with a substantial drop in revenue and a shift to a loss position. Careful attention to cost management and operational efficiency will be crucial for the company moving forward to reverse this trend.