Report

More dilution on the horizon to solve the cash problem (Dolfines)

More dilution on the horizon to solve the cash problem

TARGET CHANGE

CHANGE IN TARGET PRICE € 0.00 vs 0.00 -61.8%

The target price resets 62% lower having been negatively impacted by the massive dilution now accounted for in our model. We have increased the number of shares to 9.6 billion from 2.96 billion to reflect the dilutive repercussions of the equity funding the company needs and will have to carry out to prop up the balance sheet and solve the cash problem to be able to finance its WC requirement. Although the operations are improving rapidly and the company will be in a net cash position soon, a dilutive financing operation will still happen.

We have cut our FY23 turnover forecast by nearly 15% to 7.82m and our FY24 turnover forecast by 5%. While the net result will remain in negative territory for both years, we are estimating a return to a positive figure in FY25. The estimated dilution, however, has further reduced the EPS-based valuation.

CHANGE IN NAV € 0.00 vs 0.01 -67.4%

For the sizeable decrease in the NAV valuation, please see Target Price.
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
Elif Binici

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