Dolfines

FY20:
Turnover: €2.5m (-58% yoy)
EBITDA: €-1.8m (-64% yoy)
Adjusted net income: €-2.0m (vs €-1.5m in 2019)
Net income: €-2.3m (vs €-2.7m in 2019)

Net cash: €0.7m (vs €-1m in 2019)

Outlook:
Q1 revenue: €0.84m (+68% yoy)
Order at €2.2m
Launch of the Cash&Value21/25 Renewable Energy Plan

FY20
While sales came in below our estimates (€2.5m vs €3.6m), the adjusted net loss is €0.2m lower than our estimates. The reason for this is the level of savings which accelerated in H2. On a full-year basis, the company has reduced costs by €2.9m, with €1.2m in external expenses and €1.7m in staff costs. While we do not expect these savings to be sustainable (e.g. partial unemployment), this allows the company to withstand the current tough times.

Oil & Gas
Given the steady oil prices, 2020 is likely to be the trough in revenue. The activity seems to be rebounding with revenues of €0.84m in Q1 21 and a backlog at €2.2m. Assuming that the backlog is executed in 2021, this implies revenue of €3.04m, a 20% increase from 2020.

Cash&Value21/25 Renewable Energy Plan
Dolfines is starting a five-year strategic plan around two key points. The first is on expanding the services offering in wind. This is supported by the partnership signed with France 8.2 and possibly one or more acquisitions. In our view, this is positive, as this would bring recurring activities in the renewables space. The second is on the 15MW turbine carrying float, where Dolfines wants to reach the TRL6 level by the end of 2022. Before that, the company wants to upscale the current floater (TrussFloat) to support a 15MW turbine.

We will update our model following this release.