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      What Made Brooge Energy (BROG) To Rise 20.77% Pre-Market?

      By Fahim Awan

      Published on

      October 4, 2023

      9:51 AM UTC

      Last Updated on

      October 4, 2023

      9:53 AM UTC

      What Made Brooge Energy (BROG) To Rise 20.77% Pre-Market?

      Brooge Energy Limited (NASDAQ: BROG) experienced a substantial surge during pre-market trading, registering a remarkable 20.77% increase, with its share price reaching $6.63.

      Prior to this surge, Brooge Energy’s stock had concluded the regular trading session on a positive note, rising by 2.62% to settle at $5.49 per share.

      Notably, the trading activity in BROG stock exhibited an unusual level of intensity, with more than 78,000 shares changing hands, a notable contrast to the typical daily trading volume of a mere 7,000 shares. This notable upswing in BROG stock can be attributed to the emergence of a takeover proposal.

      Brooge Energy (BROG) has been presented with a formal proposition by Gulf Navigation Holdings PJSC (“GULFNAV”) to acquire all of Brooge Energy Limited’s (“BEL”) assets and businesses.

      GULFNAV, a Dubai Financial Market-listed maritime and shipping company, has outlined that this acquisition aligns with its strategic plan to bolster growth and offer integrated logistical services in the fields of oil, petrochemicals, and gas.

      However, the proposed acquisition is in its early stages, with GULFNAV conducting due diligence and BROG yet to respond. The transaction, if it progresses, will need customary closing conditions and regulatory approvals, with GULFNAV aiming for a fourth-quarter 2023 closure.

      BROG benefits from strong demand for oil storage, thanks to its advantageous location and advanced technology.

      Financially, BROG’s recent performance is notable. In the initial six months of 2023, there was an impressive surge of 191% in the company’s earnings before expenses, in contrast to the corresponding period in 2022.

      This surge was accompanied by a considerable boost in the earnings percentage, which rose from 63% to 82%. The company disclosed a net income of USD 37.4 million, marking a significant upswing from the USD 3.9 million in the initial half of 2022.

      As of June 30, 2023, Brooge Energy (BROG) held cash and equivalents of USD 3.7 million and a restricted bank balance of USD 15.7 million.

      Shareholders’ equity stood at USD 142.5 million, compared to USD 105.1 million at the end of 2022. These financial figures underscore BROG’s robust performance and its attractiveness as an acquisition target for GULFNAV.

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