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Dolfines

CR
Bloomberg   ALDOL FP
Engineering-Heavy Constr.  /  France  Web Site   |   Investors Relation
Capital increase to bring some order
Target
Upside 600%
Price (€) 0.01
Market Cap (€M) 0.19
Perf. 1W: -15.8%
Perf. 1M: -9.82%
Perf. 3M: -87.0%
Perf Ytd: -97.0%
10 day relative perf. to stoxx600: -16.6%
20 day relative perf. to stoxx600: -56.1%
Earnings/sales releases03/05/2022

FY21: recap as investments accelerate in renewables

The FY21 results came in below our expectations as Covid-19 dragged on mobility thus limiting oil & gas activities, although the strong start to the year confirms that the recovery is ongoing. As investments ramp up, the company has announced a c. €4m recap, split between debt conversion and an equity increase. The latter should be enough to sustain research & development activities in renewables for both the new floater and the telescopic arm for offshore wind inspection.


Fact

Turnover: €3.93m (+55% yoy)
EBITDA: €-1.46m (vs €-1.85m in 2020)
Adjusted net income: €-1.62m (vs €-1.97m in 2020)
Net income: €-1.56m (vs €-2.26m in 2020)

Net debt: €2.13m (vs €-0.66m in 2020)


Analysis

Capital increase: The company intends to raise c. €4m to support its investments in the floater (trussFloat15) as well as in wind services. Investments in TrussFloat15 had already accelerated in H2-21 with c. €325k and €480k in FY21. The split between the conversion of bonds with NEGMA and stock issuance remains unknown at this stage.

H2-21: In Oil & Gas, turnover was down by around 10% in H2 vs H1 (€1.8 vs €2m), and despite the surge in oil prices as Covid-19 continued to restrict international travel. All in all, the turnover in technical assistance and in audit & inspection combined was flat in H2 vs H1 at €1.65m, yet the mix was different, with 17% hoh growth for technical assistance (€873k) vs 13% hoh decline for audit & inspection (€775k). Note however that the company had already announced a strong start of the year 2022 with Q1 turnover increasing by 52% (€1.95m), including 8.2 France (which we estimate at €500-600k), and led by the audit & inspection division with several contracts in the dynamic Gulf countries (Saudi Arabia, UAE, Oman).

In Renewables, as mentioned above, Dolfines has started the Trussfloat15 project (extension of the Trussfloat6). There have also been some positive developments in wind services with the 8.2 France transaction now completed. 8.2 France reported a turnover of €2.31m for FY21 (€0.54m since integration), which is 28% yoy. Dolfines is developing a solution for the offshore maintenance of floating wind turbines, using a telescopic tool. The former could use funds from the IPA4 (Investment for the Future 4). Lastly, 8.2 France is developing a drone for offshore wind turbine inspection.


Impact

We will update our model following this release.


Updates

23 Nov 22 Target Change
Capital increase slashes the valuation

28 Sep 22 Target Change
Costly financing cuts the target price

28 Jul 22 Earnings/sales releases
H1: Growth in both segments

09 Jun 22 Strategic Plan
Development continues in renewables

03 May 22 Earnings/sales releases
FY21: recap as investments accelerate in rene...

31 Mar 22 Other news/comments
Strong start of the year

11 Jan 22 Other news/comments
Prequalified in Saudi Arabia for rig inspection

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