Brooge Energy Limited

Climate Impact & Sustainability Data (2020)

Medium-term Goals:

Expand the scale of existing operations by completing Phase II and operating the BIA Refinery
Growth through Expansion of BPGIC’s Facilities and Geography
Continue to build relationships with potential customers

limited operating history
reliance on BIA and storage customers for revenue
impact of Phase I ancillary service usage on profitability
potential difficulties finding replacement customers for expiring contracts
risks and expenses associated with Phase II construction
reliance on BIA for Phase II and BIA Refinery revenues
scarcity of land in Fujairah limiting expansion
risks of accidents at BPGIC Terminal
operating hazards at BIA Refinery
volatile refining margins
dependence on Senior Management expertise
material weaknesses in internal control over financial reporting
regulatory compliance
dependence on Port of Fujairah facilities
restrictive covenants in Bond Financing Facility
fixed cost nature of operations
dependence on IT and operational systems
substantial capital investment needed for future expansion
political and economic conditions in Fujairah and the UAE
potential impact of terrorist attacks, natural disasters, or other catastrophic events
climate change-related legislation or regulations
costs of maintaining compliance with environmental, health, and safety regulations
violations of anti-corruption laws or economic sanctions programs
tax liabilities associated with indirect taxes
changes to VAT law in the UAE
impact of US dollar/UAE dirham exchange rate changes
unlawful or arbitrary governmental action
uncertain legal and regulatory environment
potential impact of registration rights and securities sales on share price
potential delisting from NASDAQ

hiring new CFO and finance personnel with public reporting experience
conducting trainings for new employees on IFRS and SEC reporting requirements
appointing a third-party consultant to prepare financial reporting processes
implementing long-term incentive plans with Senior Management
implementing corporate governance and financial reporting procedures
developing alternative sourcing strategies
installing impermeable lining to minimize oil leakage
maintaining insurance policies
diversifying customer base
implementing security standards and internal programs
monitoring employee exposure to risks
maintaining policies and procedures to ensure compliance with sanctions programs

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers