Dolfines

Following the H1 update, we have lowered our estimates for oil & gas activities and now see FY20 revenues of €4.8m vs €5.3m previously and FY21 revenues of €5.3m vs €7.3m previously. While the newsflow is undoubtedly positive in renewables, the current retreat in drilling activities impacts our valuation.

2020 is down due to the revision in the Audit & Inspection division (Factorig) with revenues at €2.6m vs €3.5m previously. 2021 is down due to revision in the Audit & Inspection division (Factorig) with revenues at €3m vs €3.7m previously as well as in the New Energies division (Dolfines New Energies) as we shift the commercialisation of the floater from 2021 to 2022. The lower estimates at Factorig is justified by our cautious stance on the recovery of investments in oil & gas.

Note that, as we shift the commercialisation of the floater by one year, we have also delayed the issuance of €4m of debt from 2020 to 2021. This therefore reduces the interest expenses and impacts positively the EPS for 2020 (despite our negative revision in oil & gas).

The NAV is down on higher net debt (as a result of the lower estimates for FY20), as well as a lower valuation of the Factorig division (down by 10% to €6m) which is justified by the lower estimates for the division in 2020 and 2021.

The DCF is down on our lower estimates for 2020 and 2021 in oil & gas activities.