reports
- Elif Binici
Operational improvement promising despite the 50% revenue decline, cas...
Operational improvement promising despite the 50% revenue decline, cash problem key to survival EARNINGS/SALES RELEASES Following the management overhaul in June 2023, Dolfines has undergone a big restructuring to cut costs and overcome operational issues. The governance problems led to a 50% decline in Dolfines’ turnover while the other group companies delivered flat performances. Despite cancelled contracts in H1, the company has also signed new ones to support turnover over the next year. T...
- Elif Binici
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 W...
- Elif Binici
Immeasurable dilution smashes valuation, once more (Dolfines)
Immeasurable dilution smashes valuation, once more TARGET CHANGE CHANGE IN TARGET PRICE € 0.00 vs 0.01 -65.8% In the aftermath of our latest update 2 weeks ago, Dolfines has completed another round of share issuance with 1.9bn new shares. While there have been no changes to our financial estimates given no new updates on the business front, the dilution has slashed the valuation and massively weighed on the target price. CHANGE IN NAV € 0.01 vs 0.03 -65.1% Given the significant number of n...
- Elif Binici
Business growth embarked, but dilution kills the valuation (Dolfines)
Business growth embarked, but dilution kills the valuation TARGET CHANGE CHANGE IN EPS 2023 : € 0.00 vs 0.00 ns 2024 : € 0.00 vs 0.00 ns Our FY22 figures have been decreased with the integration of the annual results as the net attributable result was negatively impacted by exceptional financial expenses. CHANGE IN NAV € 0.03 vs 0.10 -71.5% Similarly, share dilution has reduced the NAV valuation by more than 70% despite a slight increase in the absolute net value of the assets thanks to th...
- Elif Binici
Battered Dolfines illuminates a future path with the HSE acquisition
Battered Dolfines illuminates a future path with the HSE acquisition EARNINGS/SALES RELEASES After a long period of searching for another profitable acquisition, Dolfines decided to expand its footprint in the Health, Safety and Environment market and buy out AEGIDE International, which has more than 200 clients across the world. In FY22, the acquired company generated turnover of €2.75m, and had averaged 15% annual growth over the last three years. In our view, the acquisition enhances Dolfin...
- Elif Binici
Tapping into the HSE market with new equity-financed acquisition
Tapping into the HSE market with new equity-financed acquisition M&A /CORP. ACTION Dolfines has executed an equity financing programme to prop up its balance sheet and finance an acquisition in FY22. The result was a year-long downhill trend on the share price at a stupefying level of 98%. Committed to the strategy to generate more revenues and expand market share, Dolfines embarked on another cash-accretive acquisition opportunity this year, again with equity line financing that will sustain ...
- Elif Binici
Can Dolfines’ shareholders survive its financing hurricane?
Can Dolfines’ shareholders survive its financing hurricane? FINANCING ISSUE In a recent round of equity line financing with convertible bonds, Dolfines was able to bring €4,135k to finance a new acquisition, pay debts and invest in research and development projects. But this came at a grave cost for the shareholders as the share price nose-dived. At this point, the company and the shareholders could only hope for this precarious form of financing to do its job and facilitate cash generation f...
- Elif Binici
H1: Growth in both segments
H1: Growth in both segments EARNINGS/SALES RELEASES Revenue stood at €4.3m in H1, confirming the positive momentum communicated in Q1. The Oil & Gas activities recovered sharply with the high oil price, while the strong growth continued at 8.2 France. The prospects also look good for H2, with drilling activity remaining elevated and with the workforce growing in Renewable energies. Overall, a positive update, which will help to support the stock price. FACT H1 (comparison including 8.2 Franc...
- Kevin Vo
Development continues in renewables
Development continues in renewables STRATEGIC PLAN The strategy update was in line with the recent communications from the company, but provided more details ahead of the capital increase. While the oil & gas activities continue to recover, the priority remains on renewables (both inorganic and organic). A large share of the proceeds will fund acquisitions, with one soon to be announced in renewables services. Furthermore, the company is aiming to break-even at operating cash flow level by the...
- Kevin Vo
FY21: recap as investments accelerate in renewables
FY21: recap as investments accelerate in renewables EARNINGS/SALES RELEASES The FY21 results came in below our expectations as Covid-19 dragged on mobility thus limiting oil & gas activities, although the strong start to the year confirms that the recovery is ongoing. As investments ramp up, the company has announced a c. €4m recap, split between debt conversion and an equity increase. The latter should be enough to sustain research & development activities in renewables for both the new float...
- Kevin Vo
Strong start of the year
Strong start of the year SIGNIFICANT NEWS The stock is up 15% at pixel time on a positive press release showing a turnover (for January and February) higher than in 2019 (at €1.3m). This is led by Factorig (inspection division), where the company performs work in Latin America, and has a strong commercial activity. FACT Revenue of €1.3m for January and February, of which: €0.8m in Factorig, vs €0.4m in 2021, €1m in 2019 ANALYSIS Factorig is the driving force behind this strong start of ...
- Kevin Vo
Prequalified in Saudi Arabia for rig inspection
Prequalified in Saudi Arabia for rig inspection SIGNIFICANT NEWS Positive news in oil & gas with this prequalification for rig inspection and acceptance services for Saudi Aramco Drilling. The Middle East has been particularly resilient to the oil crisis, where Factorig has recently signed several contracts with new customers. Overall, the low breakeven levels, as well as continuing development works, will allow a decent level of activity in inspection services across the whole business cycle....
- Kevin Vo
Second green bond, rig sale resurfaces
Second green bond, rig sale resurfaces SIGNIFICANT NEWS The company is issuing a €2m green bond and is separating the conventional and renewable activities. The latter was already announced early last year, yet it seems that the improving environment in oil & gas explains this restart. The stock is up 15%, after a volatile November, and, in our view, due to the company issuing the €2m bond instead of using the OCABSA line. FACT Legal separation of the oil & gas activities and renewables act...
- Kevin Vo
H1: activity recovers in oil & gas
H1: activity recovers in oil & gas EARNINGS/SALES RELEASES The net loss came in below expectations, most likely due to temporary unemployment measures phasing out but the outlook is positive, supported by the activity picking up in oil & gas. The latter is visible when comparing the revenue for H1 21 vs H2 20 (+100%), Q3 21 vs Q2 21 (+43% qoq), and in the number of calls for tenders received in the audit & inspection division (+30% in H1 21 vs H2 20). FACT H1 results Revenue: €2m (+33% yoy) ...
- Kevin Vo
Transaction completed in wind services
Transaction completed in wind services SIGNIFICANT NEWS The acquisition of 8.2 France is complete and Dolfines has signed a financing agreement with an investment company to implement its strategic plan. The transaction (together with funding for working capital) is financed with the issuance of €1.2m of bonds convertible into shares with warrants attached. As we highlighted previously, the strong growth seen at 8.2 France (FY21 sales guided at +35%) is positive as it helps in diversifying Dol...
- Kevin Vo
Green shoots
Green shoots SIGNIFICANT 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: ...
- Kevin Vo
Strategic acquisition in wind services
Strategic acquisition in wind services M&A /CORP. ACTION Dolfines kicks off its five-year strategy plan with the potential acquisition of a wind services company (8.2 France). After a Memorandum of Understanding signed last year with 8.2 France, Dolfines confirms its intention to expand its services offering in renewables. All in all, a positive development that will accelerate Dolfines’ transition. FACT Dolfines in exclusive discussions for the acquisition of 8.2 France 8.2 France: Sales o...
- Kevin Vo
FY20: expanding services into wind
FY20: expanding services into wind EARNINGS/SALES RELEASES FY20 comes with an adjusted net loss of €2.0m, against our estimates of €-2.2m, on additional savings. The activity seems to be rebounding in oil & gas, with the Q1 turnover up by 68% yoy at €0.84m and a €2.2m backlog. Lastly, the company is launching a five-year strategic plan which aims to expand Dolfines’ service (technical assistance, inspection, etc.) on wind turbines and to develop the 15MW turbine-carrying float. FACT FY20: Tu...
- Kevin Vo
Green bond issued, contract in oil & gas
Green bond issued, contract in oil & gas SIGNIFICANT NEWS While the issuance of the green bond confirms the appetite for renewables by the market, the front-end engineering & design contract awarded in oil & gas is re-assuring. In the press release, Dolfines also mentions an order book that has been largely reconstituted in the audit division (Factorig). This supports our view on the recovery of oil & gas services after the trough in 2020. FACT Issuance of a €1.5m green bond: Maturity of tw...
- Kevin Vo
Name change to highlight development in renewables
Name change to highlight development in renewables SIGNIFICANT NEWS FACT Following the general assembly, Dietswell takes the name of the renewables division to become Dolfines. The renewables division is now Dolfines New Energies. This highlights the company’s activities in offshore wind, which benefit from a positive momentum. Coincidentally, the name change came the same week as BP’s annual energy outlook. The outlook, which departs strongly from previous year’s, supported management in shi...
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