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Bloomberg   ALDOL FP
Engineering-Heavy Constr.  /  France  Web Site   |   Investors Relation
Acquisitions and new management ensure growth but financing still a headache
Upside 69.0%
Price (€) 0.00
Market Cap (€M) 6.74
Perf. 1W: 0.00%
Perf. 1M: -12.5%
Perf. 3M: 75.0%
Perf Ytd: 40.0%
10 day relative perf. to stoxx600: -11.2%
20 day relative perf. to stoxx600: -12.4%
Earnings/sales releases28/05/2020

FY19: revenues decline, positive environment in renewables

While the dynamic is positive in the renewables activities with the CIMC Raffles partnership and the Marine Energy Alliance collaboration, the low oil & gas prices are taking their toll on the results. 2019 seems to have set the trend for the next two years (i.e. slow activity in oil & gas, dynamic environment in renewables), justifying further Dietswell’s strategic move into renewables.


Turnover: €6m (-15% yoy)
EBITDA: €-1.14m (vs €0.02m in 2018)
Adjusted net income: €-1.53m (vs €-0.25m in 2018)
Net income: €-1.13m (vs €-0.28m in 2018)

Net debt: €1.06m (vs €0.44m in 2018)


The share count stands at 7.4m shares, as the group has proceeded with an increase in capital to repay the c. €1m of convertible debt emitted in 2018, as well as the conversion of 50 of the 300 OCABSA issued in January 2020.

In Oil & Gas, Dietswell had sales of €3m in H2, flat against H1. For the full year, sales are down 15% yoy, against oil prices down 10% yoy. The audit and inspection division (Factorig) reported sales of €3.2m (-24% yoy) with inspection contracts in Algeria, Brazil, Iraq and the UAE, both onshore and offshore. The ongoing travel restrictions are impacting the business, and the division has performed a rig audit in China with the help of a remote service. The technical assistance division had sales of €2.1m (-22% yoy) and the contracting division (sales of €0.6m) performed work for Enagas on the natural gas storage platform Gaviota in Spain.

Even with oil prices bouncing off their lows, the outlook remains negative for 2020, with oil prices down by 40% yoy, and majors cutting their capex by 25-30% this year. This explains the reasoning behind the write-down of the Sedlar 160 drilling rig to zero, causing a €1.13m loss. For 2021, while some companies already expect to extend their capex cuts (e.g. Shell), others plan to restart their investment programme in 2021 (e.g. Equinor). This shows how uncertain 2021 is, and we expect the sector to increase its investment later rather than earlier. Nonetheless, we expect the oil & gas sector to go back to the pre-crisis investment level, as opposed to 2014-17 when the industry had to adjust to the shale industry.

The environment is more positive in New Energies, with investment levels holding up better than in oil & gas. Since the start of the year, Dietswell / Dolfines has signed a Memorandum of Understanding with CIMC Raffles (see our previous Latest for more details, on 6 April), and has announced a collaboration with the Marine Energy Alliance (MEA) partners. The MEA partners will work on the design of a floating wind powered offshore hydrogen production unit. The MEA is a European cooperation project, with a total budget of €6m, the goal of which is to progress on the technical and commercial maturity of marine energy technologies. Both are positive news for Dolfines, which can showcase its proprietary floater and will gain knowledge by collaborating with other marine energy experts.


We will update our model after this update.