AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Dolfines

CR
Bloomberg   ALDOL FP
Engineering-Heavy Constr.  /  France  Web Site   |   Investors Relation
Expanding services into wind
Earnings/sales releases02/04/2019

2018 trading update: strong growth in Audit & Inspection

Trading update from Dietswell : FY18 revenues are up 4% yoy, driven by a strong H2 in the Factorig division (Audit & Inspection).


Fact

FY18 revenues: €7.1m (+4 % yoy)

  • Factorig (Audit & Inspection): €4.2m (+61% yoy)
  • Services (Technical Assistance): €2.7m (-34% yoy)
  • Solutions (Engineering): €0.2m (€0.1m FY17)

Analysis

The key pieces from this release are the confirmation of the recovery and the resilience of the oil & gas activities. Despite the oil price slide seen in Q4, the group has recorded a strong H2 (+45% vs H1) and beats our estimate of FY18 revenues of €7.1m (estimated : €6.5m). Growth is coming from the Factorig division (Audit & Inspection), with revenues accelerating fast (i.e. Q4 18 revenues of €1.5m against H1 18 of €1.54m), due to the restart of drilling activity worldwide (i.e. international rig count is up c.9% yoy).

In New Energies, Dolfines has recorded an engineering contract for an offshore installation attached to a wind farm.

With Brent back up above $60/bbl, we remain confident on the recovery of the engineering services in oil & gas. Maintained drilling activity should benefit Dietswell, supported by the renewal of the API Q2 certification announced in January. FY results are scheduled for the 26 April (after market) and will provide details on profitability and margins.


Impact

No change in our recommendation.


Target
Upside 114%
Price (€) 0.30
Market Cap (€M) 5.69
Perf. 1W: -17.5%
Perf. 1M: -35.2%
Perf. 3M: -35.4%
Perf Ytd: -80.5%
10 day relative perf. to stoxx600: -17.2%
20 day relative perf. to stoxx600: -29.8%
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