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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 319%
Price (€) 0.01
Market Cap (€M) 3.78
Perf. 1W: 17.7%
Perf. 1M: 77.3%
Perf. 3M: -29.6%
Perf Ytd: 90.0%
10 day relative perf. to stoxx600: -7.59%
20 day relative perf. to stoxx600: 86.3%
Latest31/08/2020

Strategic options to fast track the floater

After the memorandum of understanding signed in April with CIMC Raffles, Dietswell/Dolfines now says it is exploring strategic options in new energies. This is a positive news for the group, as a partnership with an industrial player would surely accelerate the development of the floater. The sooner the better as this will help in offsetting the oil & gas activities, which are not immune to the current austerity cure.


Analysis

In new energies, the company says it is “actively exploring various strategic options to accelerate its development”. We reckon this comment spurred the 15% price increase following the press release. Note that, in our valuation, we assume a participation with an industrial partner and we will therefore stick to this scenario until a transaction emerges. All in all, this is positive news for the company, which is getting closer to the commercialisation of the floater.

The oil & gas activities are suffering, with management expecting a significant decline in revenue, lasting in H2 as well. This echoes comments from larger oil services companies in Q2 earnings calls: the recovery will be slow in oil & gas, even with the end of lockdowns. To that extent, we will revise our forecasts further for 2020 and 2021.

Lastly, the group drew further on the OCABSA and the share count stands at 7.88m shares, which was expected in this environment, but not too far off the 7.4m previously communicated (end of May).


Updates

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

07 Feb 21 Other news/comments
Green bond issued, contract in oil & gas

12 Nov 20 Other news/comments
Another partnership to keep the momentum up

30 Oct 20 Earnings/sales releases
H1: a semester to forget in oil activities

07 Oct 20 Other news/comments
Focus stays on floater, rig inspection rebounds

17 Sep 20 Other news/comments
Name change to highlight development in rene...

28 May 20 Earnings/sales releases
FY19: revenues decline, positive environment i...

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