2023-08-30 08:27:14
August 29, 2023 Today at 11:47 am
Despite a record order book and double-digit revenue growth in the first half, Deme suffered on the stock market on Tuesday. Several elements weigh on the action.
Half-year results published by Do not say
this Tuesday morning before stock market, didn’t really trigger a ola among investors. At market close, the stock fell more than 5%, to 109.8 euros, further increasing the negative balance of the action since the beginning of the year (-11%).
There are, however, very good figures in the balance sheet for the first half of the year. Thus, the Belgian specialist in maritime dredging and the installation of wind turbines at sea has seen its order book reached a record level of 7.65 billion euros, a leap of 36%.
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Turnover et l’ebitda posted, for their part, double-digit growth with +14%, to 1.48 billion euros (above expectations), for the first and +16%, to 222 million (below the consensus), for the second . Deme has also confirmed its annual forecastsi.e. higher revenues than in 2022 and a comparable ebitda margin.
“These results show that the expansion of offshore wind into relatively new regions initially leads to a higher level of risk.”
Luke Van Beek
Analyst chez Degroof Petercam
The wind power margin
But behind this rather seductive picture, hiding a few drips which spoil the overview.
Tijs Hollestelle d’ING (“buy”; 140 euros), which speaks of “very weak half-year results”, notes that the offshore wind division generated a meager ebitda margin of 12%, compared to 16% for the group as a whole. Several reasons for this: provisions recorded in a project in the United States and for another in Taiwan, and a pressure on utilization rates of the fleet due to modifications required for vessels active in the US market.
“These results show that the expansion of offshore wind into relatively new regions is driving initially at a higher level of risk. You have to get used to the new local conditions, both technically and administratively,” adds Luuk van Beek, the Degroof Petercam (“keep”; 135 euros).
Debt is rising
Other speckling: if it remains at a reasonable level (1.4 times ebitda), the debt has risen sharply, from 574 million to 715 million euros year-on-year, exceeding consensus expectations (621 million). At issue: the cyclical effects on working capital, the level of cash flow and sustained investments.
The net result also spoils the panorama. He 24% shot, to 30.2 million euros, under the effect of negative exchange rates. The ING analyst anticipated a figure of 46.9 million euros.
Finally, as we have seen, the forecasts for the whole year remain unchanged while analysts were counting on an increase in these.
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