DIETSWELL SA: H1 2014, RESULTS
(Thomson Reuters ONE) -
* Revenues and Profitability at high
* DIETSWELL is now definitively focused in services
* Revenues progress by 57%, all divisions contributing to that performance
* Operational profitability improvement for the last two years is confirmed,
with Gross Margin at 14.1 % of Revenue, (vs 9,8 % in H1 2013)
* Book Order of ?12.9m by June 30 (vs ?8.4m in june 2013)
* The exceptional and final impairment of both the Sedlar 160 and Sedlar 250
Rigs reflects a step up in the strategic plan to refocus entirely on
Services and symbolizes the refocusing of Dietswell, which is now a widely
recognized player in the fast-growing Onshore and Offshore Engineering,
Technical Assistance, Audit & Inspection and Rig Management markets.
DIETSWELL, a company specialized in well and drilling services, releases today
its audited results by June 30, 2014.
Main figures by June 30, 2014
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In Million Euros H1 2014 H1 2013 Change
(French norms) % / x
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Book Order 12.92 8.41 +54 %
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Consolidated Revenues 12.31 7.84 +57 %
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Gross Margin 1.73 0.77 x2,2
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EBITDA((1)) 0.84 (0.02) ns
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EBIT ((2)) 0.75 (0.11) ns
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Net Result
- Before exceptional depreciation of assets 0.62 (0.18) ns
- After exceptional depreciation of assets (12.93) (0.18) ns
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Net Debt 0.92 0.73 ns
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Equity
- Before exceptional depreciation of assets 20.25 19.11 ns
- After exceptional depreciation of assets 6.69 19.11 ns
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1. EBITDA : Earnings Before Interest Taxes Depreciation and Amortization
2. EBIT : Earnings Before Interest Taxes
Pierre Laborie, the Chairman and Chief Executive Officer of Dietswell, and Jean-
Claude Bourdon, the company's Executive Vice-Chairman and founder, made the
following comments regarding these results: "Dietswell is now at a turning point
in its history. The 2014 first half results confirm the merits of the profitable
and capital-efficient growth strategy implemented in 2012, as underlined by the
positive trend in all of the business activities and the significant increase in
profitability over the past few half-yearly periods.
The recent successes recorded by the Group in each of its business lines,
regardless of whether those successes involved the Oil Majors and large
engineering companies recognizing Dietswell Solutions' ability to solve their
engineering problems, the framework agreement for Factorig with Lukoil in Iraq,
the powerful growth momentum of the Technical Assistance activities or, in the
rig management area, the contract to upgrade and operate the drilling rig on the
Gaviota Platform, which is operated by Enagás, the leading Spanish gas operator.
These technical, human and operating achievements have boosted Dietswell's
short-term growth outlook, as demonstrated by the 23.5% increase in the order
book, which amounted to ?12.9 million, compared with the end of December 2013.
Furthermore, the new Dietswell Do Brasil subsidiary, which is now fully
operational with ultra-deep water offshore gas and oil reserves, is optimally
positioning all of the Group's businesses in a fast-growing market.
This business model, which is based on expanding high-margin service activities
and is capital-efficient, currently has three major advantages:
* During periods where the oil price is falling, engineering investments prove
very resilient compared with physical investments, especially in production.
In a period of stabilization, or indeed where there is a decline in oil
companies' physical investments, we usually observe an increase in so-called
"intellectual" investments, especially in engineering in the case of
Dietswell Solutions, which enable us to efficiently prepare for a recovery.
* Moreover, the many risks relating to major accidents such as the Macondo
accident in the Gulf of Mexico in 2010 have led operators to significantly
strengthen their rig audit and inspection policies, as well as their
training policies, which Factorig will continue to benefit from.
* Lastly, the development of rig management outsourcing strategies, as well as
training and technical assistance strategies, is directly benefiting the
business activities of Dietswell Contracting and Dietswell Services.
In December 2012, within the framework of this choice for Dietswell to
increasingly focus on Services, a decision had been taken to realize the value
of the Sedlar 160 and 250 Rigs under long-term lease, hire purchase contracts, a
sale and management agreement, or even via an outright sale.
The signing of an agreement last March aimed at carrying out a drilling program
in Gabon with the Sedlar 160 Rig did not materialize. The transfer of the
equipment between Tunisia, where it was located as a result of a previous
agreement, and Gabon gave rise to significant administrative issues beyond
Dietswell's control, which resulted in the agreement falling through. The Sedlar
160 Rig is currently being stored in Spain
Accordingly, and given the lack of prospects for their near-term use, Dietswell
took the decision to sell both the Sedlar 160 and 250 Rigs. The first stages of
this process have been completed, and now enable an overall value of $5 million
to be envisaged over the coming months, based on estimates provided by
international brokers who specialize in the sale of rigs. Lastly, the sale of
these rigs will result in a decrease in the expenses relating to their
warehousing, guarding and basic maintenance.
For the time being, an exceptional provision covering the difference between the
residual book value of the two rigs and their current value of ?13.6 million,
estimated on a conservative basis, was recorded in the financial statements for
the period ending June 30 2014. This provision, which was unanimously approved
by Dietswell's Board of Directors, has no impact on the Group's cash position.
The cash arising from the sale of the two rigs will primarily be allocated to
strengthening and expanding the service activities".
57% growth of Revenues, with an improved contribution from all the divisions
First Half year 2014 Revenues are set to ?12.31m, improving by 57% versus H1
2013.
Growth momentum has been confirmed with high quarter figures: in sequence ?5.81m
for Q1, and ?6.51m for Q2.
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In million Euros H1 2014 H2 2013 Change
(French norms) % / x
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Dietswell Services 6.62 6.23 +6 %
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Dietswell Solutions 2.79 0.42 x6,6
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Factorig 1.75 1.19 +47 %
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Dietswell contracting 1.15 - ns
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TOTAL 12.31 7.84 +57 %
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* Dietswell Services (Technical Assistance): Revenues are improving by 6% to
reach ?6.62m. In addition to H1 2014 figures, a significant number of
commercial successes were registered, and will be reflected in the business
volumes for the second half, especially in Gabon and the United Arab
Emirates (UAE) via our branch in Abu Dhabi. At the same time, the division
is continuing to reinforce its organizational structure in order to support
its clients on their markets, via our representative offices in the Congo
and Brazil.
* Dietswell Solutions (Engineering Onshore & Offshore): Revenues are set to
?2.79m, strongly improved versus H1 2013. The diversification of this
department, and its positioning on high value-added contracts are becoming
more evident as innovative solutions are being offered, including:
* Technology solutions: nuclear and production processes;
* Contractual solutions: managing suppliers of specific equipment that
provides cutting-edge turn-key solutions.
* Factorig (Audit and Inspection): this division Revenue reached ?1,75m,
improving by 47% versus H1 2013. From a commercial standpoint, the first
half was characterized by an increase in business volumes in Africa and
Asia, initially in China, and latterly in Indonesia. Moreover, Factorig is
pursuing its efforts to roll out its services in the training field, and to
boost its presence in the Offshore segment.
* Dietswell Contracting (Drilling & Project Management): strong Revenue of
?1.15m are coming from ENAGAS's contract, 1(st) Spanish Gas Operator. First
phase of this contract is for the revamping of the Gaviota platform, locate
on Bermeo seashore in Spain, where ENAGAS is operating since 1994 a natural
underground reservoir for gas storage.
By June 30 2014, the Book Order amounts to ?12.9m, growing by 23% versus
December 31 2013, and by 35% versus H1 2013.
Comments on Profitability and Financial Structure
Gross Margin on H1 2014 doubled to reach ?1.73m, accounting for 85% of the Gross
Margin of 2013 full year. Expressed in Revenue, the Gross Margin is set to
14.1%, which is 4 points above the level reached in H1 2013, highlighting the
control of administrative charges as well as the improvement of the operational
contribution.
EBITDA turns back to positive at ?0.84m, as well as EBIT at ?0.74m. These
figures support the strong momentum of return to profitability, started on 2012
and confirmed since then in 2013.
Net income amounted to ?0.62 million before the inclusion of the exceptional
?13.6 million impairment charge recorded as part of the planned sale of both the
Sedlar 160 and 250 Rigs.
Gross financial debt amounted to ?3 million as at June 30 2014, compared with
?3.2 million at the end of 2013. It includes ?2.1 million in convertible bonds
as well as BPI innovation finance loans amounting to ?0.75 million. Meanwhile,
net debt amounted to ?0.9 million. Shareholders' equity amounted to ?20.25
million before the inclusion of the exceptional impairment charge, and to ?6.69
million, i.e. ?1.26 per share, including that charge.
New Developments
* Dietswell Do Brasil, new affiliate opened since end of 2013, is now
operational. This affiliate puts Dietswell in an optimal position on a fast-
growing market, which boosts ultra-deep water (i.e. at depths of over 5,000
meters) offshore gas and oil reserves.
These developments are encouraging domestic and international operators to
adopt an aggressive strategy in relation to Brazil, which is reflected in
very sizeable investments and in the use of innovative technologies.
Accordingly, Dietswell is now in a position to respond to this increasing
and sustainable demand in a thorough and competitive manner, both from the
drilling and production, and the maintenance and inspection standpoints.
* EDF has selected Dietswell, in collaboration with Principia, to carry out a
study on the feasibility of implementing a power plant cooling system that
uses a water drilling system including the well, the pipe network and the
pumps at the bottom of the well.
The success of this feasibility study would be likely to create greater
opportunities for Dietswell in the civil nuclear power market, which is one
of the natural areas for the roll-out of its drilling expertise.
* Success in supplying equipment that enables a major international company to
drill in ultra-deep water at no risk and in extreme weather conditions may
enable this supply to be established on a long-term basis. In fact, the
project involves an exploration well, and a major drilling program is likely
to be launched in the event of a discovery, which would enable Dietswell to
sell several units of this innovative solution. The same would apply in the
event that other operators embark on this kind of market.
The successful achievements from a technical, operating and financial standpoint
over the past few years, together with the exploration of new markets enables us
to be very confident in Dietswell's future development.
About DIETSWELL (www.dietswell.com)
Founded in 2000, Dietswell is an international expert in drilling operations and
design of drilling equipment for the oil industry. The multidisciplinary
services offered by DIETSWELL in the drilling sector, are backed by a flexible
and responsive operational structure, composed of industry experts.
With its highly qualified and experienced teams, Dietswell also conducts quality
audits and drilling equipment design studies, for onshore as well as offshore
rigs. Dietswell follows the highest quality and safety standards in the
industry, is certified OSEO (French Innovation Agency), as well as ISO 9001,
ISO/TS 29001 and ISO 14001 for its technical support, audit services &
engineering department.
DIETSWELL is listed on Alternext (by NYSE Euronext) - ISIN: FR0010377127 -
Alias: ALDIE
DIETSWELL is eligible to PEA-PME
DIETSWELL COMALTO
Fabian SIMONET Jean-François CARMINATI
Chief Financial Officer Shareholder relations consultancy
Tel:+33(0)1 39 30 21 60 - Fax: Tel: 33(0)6 63 87 57 60
33(0)1 39 30 47 22
fabian.simonet(at)dietswell.com jfcarminati(at)comalto.com
Press release (PDF):
http://hugin.info/163989/R/1857928/650636.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DIETSWELL SA via GlobeNewswire
[HUG#1857928]
Unternehmensinformation / Kurzprofil:
Datum: 24.09.2014 - 10:57 Uhr
Sprache: Deutsch
News-ID 342040
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