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Desert Control AS Q4 2024 Report: A Year of Transformation

Desert Control AS (DSRT), a pioneer in soil and water conservation technologies, has posted notable results in its fourth quarter report, confirming a transformative year for the fiscal period ending December 31, 2024. With a robust increase in revenues and project volume, Desert Control is well-positioned for future growth, driven by innovative agreements and an expanding customer base.

Achievements in Q4 2024

Full-Scale Golf Course Deployments

In a landmark achievement, Desert Control signed agreements for deploying its technology across two golf courses in California, under its new pay-as-you-save model. This model not only promises significant financial benefits for customers but also accelerates the sales process, bolstering the company's revenue potential with a total contract value possibly exceeding NOK 14 million.

Record Growth in Licensing Revenue

The company recorded a remarkable increase in licensing revenues, tripling from Q3 to Q4, driven primarily by expanding activities in the UAE and Saudi Arabia. Noteworthy agreements include collaborations in commercial real estate and an important partnership aimed at advancing sustainable agriculture in Saudi Arabia alongside Estidama.

Recognition from the United Nations

Amid these achievements, Desert Control's Liquid Natural Clay (LNC) technology was selected for a demonstration project funded by the United Nations World Food Programme. This initiative in Iraq aims to rejuvenate degraded land, contributing significantly to food security and climate resilience efforts.

Enhanced Production Capacity

Further underlining its commitment to innovation, Desert Control has successfully tested a next-generation production system capable of producing 120,000 liters per hour, an eightfold increase compared to previous capacities. This system is on track for commercial deployment in mid-2025, which is expected to reduce costs and enable large-scale operations.

Expansion with North American Collaborations

In addition to its achievements in the Middle East, Desert Control has expanded its horizons by securing a NOK 1.5 million contract with Oasis Date, North America’s largest date grower. The LNC technology will be utilized on 160 acres of the iconic Medjool date farm, with the potential to expand across a further 5,000 acres—signifying a major step in the company’s growth strategy.

Financial Highlights

Desert Control's financial statistics reflect the substantial progress made within the year. The company reported a full-year LNC revenue of NOK 1.88 million, significantly higher than the NOK 0.89 million from 2023.

Despite a slight increase in EBITDA losses due to operational costs, the decrease from NOK -60.05 million in 2023 to NOK -56.78 million shows a steady transition to more efficient operations, especially with the new licensed operator model in the region. The improved EBITDA, when adjusted for one-time gains in previous quarters, reveals a nearly NOK 19 million improvement in core operations over the year.

Ending 2024, Desert Control maintained a cash position of NOK 64 million, a reduction from earlier in the year, but the company affirms that it operates without interest-bearing debt, ensuring its fiscal health as it endeavors to scale further.

Looking Ahead: A Bright Future

As Desert Control moves into 2025, it does so with significant momentum from the past year's achievements. The transition from pilot projects to larger deployments in golf, agriculture, and urban landscaping signals an upward trajectory for the company.

With its next-generation production system poised for commercial readiness and an ever-growing pipeline of recurring revenue contracts, Desert Control is strategically positioned to expand its impact in soil health and water conservation markets.

Conclusion
Desert Control's impressive advancements and financial growth underscore its role as a leader in innovative soil solutions, paving the way for continued success and significant contributions to sustainable agriculture and environmental preservation in the years to come.