Report

Target cut by -18.7% (Dietswell)

TARGET CHANGE

CHANGE IN TARGET PRICE€ 1.68 vs 2.07 -18.9%
We have integrated the €3m financing line in our model. The dilution has impacted our target price (on both NAV and DCF) and assumes the progressive conversion of the bonds. Note that the financing line is flexible (at Dietswell’s request) and that only €300k has been issued so far. Yet, we assume the conversion of €3m of bonds into 3.53m shares (assuming €0.85 per share), split between 2020 and 2021, as the group makes progressive use of the financing tranches. This partly replaces partly previous hypothesis, in which the group issued €7.5m of debt in 2020 to finance its renewables activities (now assuming €4m). All other assumptions remain the same for now.
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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