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 bring some order
Target
Upside 659%
Price (€) 0.01
Market Cap (€M) 0.18
Perf. 1W: -26.8%
Perf. 1M: -33.1%
Perf. 3M: -87.1%
Perf Ytd: -97.3%
10 day relative perf. to stoxx600: -28.5%
20 day relative perf. to stoxx600: -56.2%
Earnings/sales releases02/11/2021

H1: activity recovers in oil & gas

The net loss came in below expectations, most likely due to temporary unemployment measures phasing out but the outlook is positive, supported by the activity picking up in oil & gas. The latter is visible when comparing the revenue for H1 21 vs H2 20 (+100%), Q3 21 vs Q2 21 (+43% qoq), and in the number of calls for tenders received in the audit & inspection division (+30% in H1 21 vs H2 20).


Fact

H1 results

Revenue: €2m (+33% yoy)
EBITDA: €-0.7m (+36% yoy)
Net income: €-0.7m (+46% yoy)

Net cash: €0.1m (vs €0.7m in FY20)


Analysis

The net loss came in worse than expected, after the aggressive cost cuttings seen in H2 20, and most likely due to the ending of temporary unemployment measures. The positive is on the activity picking up after the poor 2020. It is indeed noteworthy to mention that revenue doubled in H1 21 vs H2 20 and that Q2 is up by 43% qoq.

The technical assistance division (H1 revenue of €0.75m, +36% yoy) benefited from the restart of some contracts that were suspended last year, and the recovery seen in Q2 is confirmed during Q3.

The audit & inspection division (H1 revenue of €0.89m) has seen its commercial activity focused on the Middle East, with contracts awarded from new customers (e.g. UAE, Iraq, Oman) and it has been approved as a supplier by Saudi Aramco. All in all, this confirms the rather resilient drilling activities in the Middle East, where capex cuts were less pronounced than in the rest of the world (notably US shale). The press release also mentions, deep offshore inspection services in Brazil, where deepwater remains competitive (e.g. giant Búzios field is expected to break-even at $35/bbl).

Lastly, in renewables, the company has started the 15MW floater project (Trussfloat15), with a tank testing campaign planned for early 2022. Dolfines is also studying a heavy maintenance programme to be performed on the turbines and onsite.


Impact

We will adjust our model following this release.


Updates

01 Dec 21 Other news/comments
Second green bond, rig sale resurfaces

02 Nov 21 Earnings/sales releases
H1: activity recovers in oil & gas

02 Aug 21 Other news/comments
Transaction completed in wind services

19 Jul 21 Other news/comments
Green shoots

25 May 21 M&A /Corp. Action
Strategic acquisition in wind services

27 Apr 21 Earnings/sales releases
FY20: expanding services into wind

Next12345Next
.