AlphaValue Corporate Services Fundamental Analysis FR
Back to
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
Capital increase to invest in renewables
Target
Upside 43.6%
Price (€) 0.30
Market Cap (€M) 5.71
Perf. 1W: -14.9%
Perf. 1M: 10.4%
Perf. 3M: -47.4%
Perf Ytd: -12.4%
10 day relative perf. to stoxx600: -5.64%
20 day relative perf. to stoxx600: 22.8%
Investor day14/06/2019

Positive outlook, moving forward in new energies

One of the key takeaways of the strategy update is in New Energies, where Dietswell reported being contacted by several companies interested in bidding on the upcoming commercial tenders. By 2025, the company also intends to partner with an industrial group to offer an integrated system, consisting of a floater and a wind turbine.


Analysis

In oil & gas, the audit & inspection division (factorig) remains the driving force, in a market likely to be more open with Lloyd’s Register focusing on renewables and moving away from rig inspection. Management indicated that turnover was above €1m for the first four-months of 2019, against €0.8m in 2018. This is expected to increase further in H2 with several upcoming rig acceptance works (e.g. for Total in LatAm, drillship for Reliance, jack-up in Nigeria). Capitalising on its API Q2 certification and the stringent safety regulations in drilling, the company will offer a new service related to the audit and inspection of blowout preventers.

Lastly, the Rig Sedlar 250 has renewed interests from the market. Being in discussions with a potential acquirer, Dietswell could also operate the rig on behalf of the buyer. This would be a favourable outcome for the group, which has technical expertise on the rig.

In new energies, as confirmed, Dietswell’s subsidiary (Dolfines) will now host all non-oil & gas matters. Aside from working on the proprietary floater (TrussFloat), the subsidiary has designed three energy harvesting units for an EPCI company as well as made a comparative study on an electrical offshore substation in the North Sea. Note, the latter is rather close to studies performed by the company in the past and highlights that the expertise gained on offshore oil & gas activities translates well in offshore renewables.

The focus remains on the TrussFloat floater, on which management provided a positive outlook. The company is in contact with several companies (i.e. seven) to bid on the commercial tenders launched in France and Europe in the coming years, representing a total of 130 floaters and a market above €150m. Moreover, Dietswell also intends to offer an integrated system (i.e. wind turbine and floater) by 2025 and is in contact with an industrial company that would then be in charge of the wind turbine. As explained by management, the rationale behind this integrated approach is to respond better to customer needs, simplifying the project planning (i.e. assessment of the levelised cost of energy).


Impact

No change to our recommendation.


.