Report
EUR 239.93 For Business Accounts Only

2018 trading update: strong growth in Audit & Inspection

2018 trading update: strong growth in Audit & Inspection

EARNINGS/SALES RELEASES

Trading update from Dietswell : FY18 revenues are up 4% yoy, driven by a strong H2 in the Factorig division (Audit & Inspection).

FACT

FY18 revenues: €7.1m (+4 % yoy)

Factorig (Audit & Inspection): €4.2m (+61% yoy)
Services (Technical Assistance): €2.7m (-34% yoy)
Solutions (Engineering): €0.2m (€0.1m FY17)



ANALYSIS

The key pieces from this release are the confirmation of the recovery and the resilience of the oil & gas activities. Despite the oil price slide seen in Q4, the group has recorded a strong H2 (+45% vs H1) and beats our estimate of FY18 revenues of €7.1m (estimated : €6.5m). Growth is coming from the Factorig division (Audit & Inspection), with revenues accelerating fast (i.e. Q4 18 revenues of €1.5m against H1 18 of €1.54m), due to the restart of drilling activity worldwide (i.e. international rig count is up c.9% yoy).
In New Energies, Dolfines has recorded an engineering contract for an offshore installation attached to a wind farm.
With Brent back up above $60/bbl, we remain confident on the recovery of the engineering services in oil & gas. Maintained drilling activity should benefit Dietswell, supported by the renewal of the API Q2 certification announced in January. FY results are scheduled for the 26 April (after market) and will provide details on profitability and margins.


IMPACT

No change in our recommendation.
Underlying
Dietswell

Dietswell. Dietswell SA is a France-based company that provides drilling operation management services for the oil industry. The Company specializes in the design, drilling, work-over and completion engineering. It offers well engineering services, such as well engineering, preparation and evaluation of tenders, offset wells reviews; drilling project management, management of the stock of spare parts, supply of communications and logistic support, among others; drilling contracting; rig design and contracting, which designs, constructs and refurbish rigs; rig inspection and audits, which provide customized inspection and audit services; and provision of technical assistance. Dietswell SA principally provides its services to ageing oilfields that need updating, or that need to be decommissioned in an environmentally friendly manner. The Company holds stakes in two companies: Dolfines Logistique and Feumag Holding Company Limited. In October 2013, it announced the creation of Dietswell Brazil.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

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Analysts
Kevin VO

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