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- Desert Control Released Its Q3 2024 Report On 15 November 2024 and Provides Access To Company Update Webcast Materials.
Desert Control Released its Q3 2024 Report on 15 November 2024 and Provides Access to Company Update Webcast Materials.
18 Nov 2024 07:30 CET
Issuer
Desert Control AS
The company update webcast was hosted on 15 November 2024 at 10:00 AM (CET).
Please find below links to Desert Control's Q3-2024 Report and Year-to-Date
Company Update materials:
· Q3-2024 Report and Interim Financial Results -
Report: https://go.desertcontrol.com/dsrt2024q3report
· Q3-2024 and YTD Company Update -
Presentation: https://go.desertcontrol.com/dsrt2024q3presentation
· Q3-2024 Company Update - Webcast Presentation Recording -
Replay: https://go.desertcontrol.com/dsrt2024q3recording
· Q3-2024 Company Update - Webcast and Q&A - Written
Transcript: https://go.desertcontrol.com/dsrt2024q3transcript
(Note: the transcript includes a complete Q&A recap with written answers to all
questions of the extensive Q&A session and includes both the questions that time
allowed cover in the webcast plus all additional submitted questions).
DSRT Q3 and YTD 2024: Company Update Summary
Desert Control continued its positive momentum in the third quarter of 2024,
achieving milestones in market expansion and pilot progress, as well as
generating its first licensing revenues from the Middle East. The company has
year to date more than doubled deployed LNC volume, revenue, and pipeline value
compared to the same period in 2023. Based on the current development of pilots
and sales pipeline supported by groundbreaking technological advances, the
company anticipates multiple complete golf courses fully deployed in 2025,
several phase 2 deployments in high-value agriculture in the United States, and
growing revenue streams from the Middle East.
The past quarter saw strong results from pilots in agriculture and landscaping,
supporting negotiations for larger commercial projects in the United States.
Growing traction in the Middle East further strengthens the foundation for
growth under the royalty-based licensed operator model. Further, the post
-quarter event of securing commitment for the first full-scale golf course
deployment under a new outcome-based business model marks an important
milestone.
Operational Highlights:
Solid Pilot Results Strengthen Validation and Support Negotiations for Larger
Contracts in the United States
· Landscaping Success in the U.S.: Landscaping pilots in California achieved
over 25% irrigation savings, with some clients reporting water reductions
exceeding 50%. These results drive negotiations for larger contracts as high
water costs continue to rise.
· First Contract for a Complete Golf Course: On November 8th, Desert Control
signed an agreement with Berkeley Country Club with potential value exceeding
NOK 6 million under a new outcome-based business model, marking the first
commitment for full-course LNC deployment in the U.S.
· Agricultural Gains: Harvest data from an LNC-treated date farm in Arizona
showed nearly double the yield, underscoring LNC's economic impact on high-value
permanent crops and supporting Desert Control's agricultural market expansion.
First Licensing Royalties from the Middle East
· Revenue Milestone: Desert Control recorded its first licensing royalties
from the Middle East. While modest, this revenue marks the beginning of a
scalable revenue stream following the strategic shift to a royalty-based
licensed operator model for the region.
· New Contracts and Expanding Pilots: A new contract for 1.8 million liters of
LNC was secured for a UAE real estate project. Landscape nursery pilots in the
UAE and Saudi Arabia demonstrate LNC's effectiveness in the growing sustainable
landscape management sector.
R&D and Technology Advancements Strengthen Delivery Capabilities for Current and
Future Pipeline
· Syngenta Partnership Accelerates R&D: Collaboration with Syngenta has shown
promising lab results of synergies with LNC. Field trials in the Middle East,
set for Q4 2024, aim to further validate the impact on soil health, crop yields,
and water efficiency.
· Next-Gen Production System Progress & Siemens Partnership: Development of
the next-generation LNC production system is on track, with capacity nearing the
targeted 120,000 liters per hour. Achieving this milestone capacity will unlock
large-scale opportunities that require high volumes within short time windows,
enabling projects previously out of reach.
Financial Highlights:
In the first nine months of 2024, Desert Control reached a record number of
installations, increased LNC deployment volumes, and more than doubled LNC
revenue compared to the previous year. These achievements highlight enhanced
operational efficiency driven by the new prototype LNC production system,
streamlined integration with irrigation systems, and insights gained from pilots
and prior projects.
· Revenue Increase: Year-to-date LNC revenue totaled NOK 1.88 million, more
than doubling from the same period in 2023. Total revenue and other income for
Q3 2024 was NOK 0.18 million, up from NOK 0.01 million in Q3 2023.
· EBITDA Improvement: For the first nine months of 2024, EBITDA improved to
NOK -44.95 million from NOK -60.81 million in the same period last year. Q3 2024
EBITDA was NOK -14.16 million, an improvement from NOK -17.9 million in Q3 2023,
driven by efficiencies from transitioning to the licensed operator model.
· Cash Position: The company ended the quarter with a cash balance of NOK 75
million, compared to NOK 35 million at the same time last year. The company
continues to operate with no interest-bearing debt.
The growth in project volume and LNC deployment, combined with improved EBITDA
figures, underscores the enhanced efficiency of operations. The ability to
handle larger volumes at a reduced cost base positions Desert Control to
maintain healthy margins as the company scales up.
Outlook:
With solid progress in the U.S. and Middle East, Desert Control is positioned to
transition pilot projects into larger contracts and expand LNC adoption in the
year ahead. The upcoming readiness of the next-generation LNC production system,
solid R&D progress to expand LNC's impact on soil health, and strengthened
partnerships will further strengthen the company's foundation and accelerate
progress in bringing economical, scalable, and sustainable solutions for soil
health and water conservation to global markets. Looking ahead, 2025 is set to
be another year of significant breakthroughs for Desert Control.
Q3 Report 2024:
· The information enclosed is subject to the disclosure requirements pursuant
to sections 5-12 of the Norwegian Securities Trading Act
· The report and materials can also be downloaded from the company webpage:
https://desertcontrol.com/investors/
Cautionary Note:
Disclaimer related to forward-looking statements.
This release contains forward-looking information and statements relating to the
business, performance, and items that may be interpreted to impact the results
of Desert Control and/or the industry and markets in which Desert Control
operates.
Forward-looking statements are statements that are not historical facts and may
be identified by words such as "aims," "anticipates," "believes," "estimates,"
"expects," "foresees," "intends," "plans," "predicts," "projects," "targets,"
and similar expressions. Such forward-looking statements are based on current
expectations, estimates, and projections, reflect current views concerning
future events, and are subject to risks, uncertainties, and assumptions, and may
be subject to change without notice. Forward-looking statements are not
guarantees of any future performance, and risks, uncertainties, and other
important factors could cause the actual business, performance, results, or the
industry and markets in which Desert Control operates to differ materially from
the statements expressed or implied in this release by such forward-looking
statements.
No representation is made that any of these forward-looking statements or
forecasts will come to pass or that any forecasted performance, capacities, or
results will be achieved, and you are cautioned not to place any undue reliance
on any forward-looking statements.
For more information, please contact:
Ole Kristian Sivertsen
President and Group CEO
Email: oks@desertcontrol.com
Mobile (NOR): +47 957 77 777
Mobile (USA): +1 650 643 6136
Leonard Chaparian
Chief Financial Officer
Email: leonard.chaparian@desertcontrol.com
Mobile (NOR): +47 90 66 55 40
About Desert Control:
Desert Control develops innovative solutions to enhance soil health, conserve
water, and promote ecosystem resilience. The company's mission is to combat
desertification, soil degradation, and water scarcity. Our patented Liquid
Natural Clay (LNC) transforms sandy, fast-draining soils to retain water and
nutrients, improving soil health, crop yields, and ecosystem vitality while
conserving water. Desert Control provides customized solutions to strengthen
sustainability, profitability, and prosperity for agriculture, forests, and
green landscapes. In collaboration with partners and clients, we aim to preserve
natural resources, restore biodiversity, enhance food security, and ensure a
climate-resilient future.
For more information, visit https://www.desertcontrol.com
More information:
Access the news on Oslo Bors NewsWeb site
Source
Desert Control AS
Provider
Oslo Børs Newspoint
Company Name
DESERT CONTROL AS
ISIN
NO0010963275
Symbol
DSRT
Market
Euronext Growth