AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
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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%
Other news/comments12/03/2020

Name change to highlight strategic shift

While the weak environment impacts the oil & gas activities, the company maintains its strategic shift towards the renewables. The company will take the name of its current renewables division (Dolfines) and spin off its audit & inspection division. This should make the company more visible in the offshore wind market, which is now looking to develop its floater in partnership with a larger player.


Fact

  • Expect FY19 sales above €6m
  • Name change from Dietswell to Dolfines
  • Spin off of the Audi and Inspection activities
  • Sedlar rig divestment still ongoing

Analysis

FY19 preliminary sales are lower than our expectations (€7.2m), so we will subsequently adjust them. We will also lower our estimates for 2020, as the environment is particularly weak for the oil & gas industry. Exploration and production companies will revise their capex spending with a $35 oil, affecting services companies negatively. However, the audit & inspection division should be more resilient than the pure exploration activities (e.g. seismic).

Dietswell/Dolfines will spin off the audit and inspection division (Factorig), in what could be a first step before a divestment. Operationally, the factorig division seems to be autonomous and we do not see a loss of synergies with such a transaction.

The focus remains on the offshore wind market. Dolfines now aims at co-developing the proprietary floater (Trussfloat) with a larger player.

Lastly, note that the company still expects to divest its Sedlar rig, as an outright sale, lease or provision with a maintenance contract.


Impact

We will adjust our estimates following this release.


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