Etihad Energy gains from Brooge integration

Etihad Energy Holding posted a sharp rise in first-quarter revenue as the Dubai-listed group’s transformation from a shipping-focused operator into an integrated energy infrastructure platform began to show in its consolidated accounts.

Revenue reached AED109.7 million, or about $30 million, in the first three months of 2026, up 64 per cent from the same period last year. The figure was also 325 per cent higher than the AED25.8 million recorded by Gulf Navigation Company in the first quarter of 2025, before the group’s rebranding and full consolidation of acquired assets.

Gross profit rose to AED62.5 million, lifting the gross margin to 57 per cent from 18.1 per cent a year earlier, when gross profit stood at AED4.6 million. Adjusted EBITDA reached AED72 million, with the margin improving to 66 per cent from 49 per cent. The company also moved into profit, reporting AED19.8 million for the quarter against a loss of AED6.9 million in the comparable period of 2025.

The results mark the first full quarter after Gulf Navigation Holding PJSC completed the acquisition of Brooge Energy assets on November 27, 2025, and later changed its corporate identity to Etihad Energy Holding PJSC. The company remains listed on the Dubai Financial Market under the symbol GULFNAV, with the trading identity expected to be aligned with the new name after regulatory formalities are completed.

Chief executive Saif Al Hazaimeh said the quarter reflected the impact of the Brooge transaction and the wider strategic shift under the new identity. The acquisition brought the storage platform of Brooge Petroleum and Gas Investment into the group, strengthening its exposure to oil storage, blending, maritime logistics and energy infrastructure.

Shareholders approved the name change at the annual general meeting on April 24, 2026, alongside the election of a seven-member board for a three-year term, the appointment of Grant Thornton as external auditor for 2026 and the adoption of the 2025 financial statements. They also approved a share buyback programme of up to 5 per cent of issued share capital, subject to regulatory approvals.

The group’s stronger performance comes as Fujairah’s role in regional energy logistics gains added commercial weight. The port is one of the world’s major bunkering and oil storage centres, with storage capacity that has grown from 550,000 cubic metres in the 1990s to roughly 18 million cubic metres. Its location on the Gulf of Oman gives it strategic value for storage, blending and exports outside the Strait of Hormuz.

Etihad Energy’s expansion plans centre on adding scale to those assets. Phase 3 of its storage expansion project is expected to add about 1.09 million cubic metres of capacity, more than doubling the group’s current storage base. Phase 3A is under detailed engineering design, with draft engineering, procurement and construction contracts also completed.

The company is also advancing a naphtha-to-gasoline refinery project. A detailed engineering design contract has been awarded to PEG Engineering, while the conversion technology is licensed by Honeywell. The first phase is planned to include a refining unit capable of processing 14,500 barrels per day of naphtha into gasoline meeting Euro 5 standards.

The Brooge deal has substantially changed the scale and profile of the former Gulf Navigation business, but it also places the company under closer investor scrutiny. Brooge Energy had previously faced regulatory and legal issues in the United States linked to historical financial reporting. Etihad Energy’s task now is to show that the acquired operating assets can deliver stable cash flows under the governance framework of a DFM-listed company.

The company’s quarterly margins suggest the asset mix has shifted towards higher-value infrastructure income rather than purely shipping-linked revenue. Storage and refining projects typically require heavy capital spending and careful execution, but they can also generate long-term contracted income when utilisation is strong and customers seek flexible access to regional fuel and crude logistics.