Green shoots
Green shootsSIGNIFICANT NEWS
The company released a positive update which triggered a 60% spike in the stock price. While there are various elements in the update, we believe the large stock move is mainly due to the strong growth seen in both oil & gas and wind activities (8.2 France). Furthermore, the company intends to pursue external growth in wind services, as it expects the Dolfines / 8.2 France combination to attract other market players.
FACT
1 by 2 stock split, total share count: 19,145,548 shares
Acquisition of 8.2 France near completion
Acceleration of the development of the 15MW turbine carrier float
ANALYSIS
Wind services: the acquisition of 8.2 France is ongoing with a signing objective by the end of the month. The growth seen in 2020 (sales +16% yoy) is accelerating in 2021. The company mentions that the Dolfines / 8.2 France combination is paving the way for other value-creating external growth operations. While the funding is still pending, the company will provide more information at a later stage.
Oil & gas: the strong rebound in sales seen in Q1 (sales +68% yoy) continues with the company being in demand for several projects. The commercial activity at Factorig (rig audit and inspection services) is higher than before 2019.
IMPACT
We stick to our recommendation for now and will update our model after the 8.2 France transaction.
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.
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