Desert Control's Q3 2024 Report: A Step Towards Sustainable Growth
November 19, 2024, 5:31 pm
Desert Control AS, a Norwegian company focused on combating desertification and enhancing soil health, recently released its Q3 2024 report. The report, unveiled on November 15, 2024, highlights significant strides in market expansion, pilot projects, and the initiation of licensing revenues, particularly in the Middle East. This update paints a picture of a company on the rise, with a clear vision for sustainable growth.
The third quarter of 2024 marked a pivotal moment for Desert Control. The company reported solid pilot results in both agriculture and landscaping, which are crucial for securing larger contracts in the United States. As water costs soar, the demand for innovative solutions like Desert Control's Liquid Natural Clay (LNC) is growing. The pilots in California demonstrated impressive irrigation savings, with some clients reporting reductions exceeding 50%. Such results are not just numbers; they represent a lifeline for businesses grappling with escalating water expenses.
One of the standout achievements of the quarter was the signing of a contract with Berkeley Country Club. This agreement, valued at over NOK 6 million, signifies the first full-scale deployment of LNC for a golf course in the U.S. This milestone is a testament to the effectiveness of Desert Control's technology and its potential to reshape landscaping practices in water-scarce regions.
In agriculture, the results are equally compelling. A date farm in Arizona treated with LNC reported nearly double the yield compared to untreated fields. This data underscores the economic benefits of LNC, particularly for high-value crops. As Desert Control expands its agricultural market presence, these results will serve as powerful testimonials to potential clients.
The company also celebrated its first licensing royalties from the Middle East. While modest, this revenue marks the beginning of a scalable income stream. The strategic shift to a royalty-based licensed operator model is a game-changer. It lays the groundwork for future growth in a region where water scarcity is a pressing issue.
Desert Control's commitment to research and development is evident in its partnership with Syngenta. This collaboration aims to enhance the efficacy of LNC through rigorous field trials. The next-generation LNC production system is also on track, with a targeted capacity of 120,000 liters per hour. This capability will enable Desert Control to meet the demands of large-scale projects, unlocking opportunities that were previously out of reach.
Financially, Desert Control is showing signs of resilience. The company reported a year-to-date LNC revenue of NOK 1.88 million, more than double that of the previous year. Total revenue for Q3 2024 reached NOK 0.18 million, a significant increase from NOK 0.01 million in Q3 2023. While the EBITDA remains negative, the improvement from NOK -60.81 million to NOK -44.95 million in the first nine months of 2024 reflects enhanced operational efficiency.
The cash position is another bright spot. Desert Control ended the quarter with NOK 75 million in cash, a substantial increase from NOK 35 million a year earlier. This financial stability, coupled with no interest-bearing debt, positions the company well for future growth.
Looking ahead, Desert Control is poised for a transformative year in 2025. The groundwork laid in 2024, with successful pilots and growing revenue streams, sets the stage for larger contracts and expanded LNC adoption. The company’s focus on scalable, sustainable solutions for soil health and water conservation is not just a business strategy; it’s a commitment to a better future.
In conclusion, Desert Control's Q3 2024 report reveals a company that is not just surviving but thriving in a challenging landscape. With innovative technology, strategic partnerships, and a clear vision for the future, Desert Control is well-positioned to make a significant impact in the fight against desertification and water scarcity. The road ahead is promising, and the company is ready to lead the charge towards a more sustainable world.
The third quarter of 2024 marked a pivotal moment for Desert Control. The company reported solid pilot results in both agriculture and landscaping, which are crucial for securing larger contracts in the United States. As water costs soar, the demand for innovative solutions like Desert Control's Liquid Natural Clay (LNC) is growing. The pilots in California demonstrated impressive irrigation savings, with some clients reporting reductions exceeding 50%. Such results are not just numbers; they represent a lifeline for businesses grappling with escalating water expenses.
One of the standout achievements of the quarter was the signing of a contract with Berkeley Country Club. This agreement, valued at over NOK 6 million, signifies the first full-scale deployment of LNC for a golf course in the U.S. This milestone is a testament to the effectiveness of Desert Control's technology and its potential to reshape landscaping practices in water-scarce regions.
In agriculture, the results are equally compelling. A date farm in Arizona treated with LNC reported nearly double the yield compared to untreated fields. This data underscores the economic benefits of LNC, particularly for high-value crops. As Desert Control expands its agricultural market presence, these results will serve as powerful testimonials to potential clients.
The company also celebrated its first licensing royalties from the Middle East. While modest, this revenue marks the beginning of a scalable income stream. The strategic shift to a royalty-based licensed operator model is a game-changer. It lays the groundwork for future growth in a region where water scarcity is a pressing issue.
Desert Control's commitment to research and development is evident in its partnership with Syngenta. This collaboration aims to enhance the efficacy of LNC through rigorous field trials. The next-generation LNC production system is also on track, with a targeted capacity of 120,000 liters per hour. This capability will enable Desert Control to meet the demands of large-scale projects, unlocking opportunities that were previously out of reach.
Financially, Desert Control is showing signs of resilience. The company reported a year-to-date LNC revenue of NOK 1.88 million, more than double that of the previous year. Total revenue for Q3 2024 reached NOK 0.18 million, a significant increase from NOK 0.01 million in Q3 2023. While the EBITDA remains negative, the improvement from NOK -60.81 million to NOK -44.95 million in the first nine months of 2024 reflects enhanced operational efficiency.
The cash position is another bright spot. Desert Control ended the quarter with NOK 75 million in cash, a substantial increase from NOK 35 million a year earlier. This financial stability, coupled with no interest-bearing debt, positions the company well for future growth.
Looking ahead, Desert Control is poised for a transformative year in 2025. The groundwork laid in 2024, with successful pilots and growing revenue streams, sets the stage for larger contracts and expanded LNC adoption. The company’s focus on scalable, sustainable solutions for soil health and water conservation is not just a business strategy; it’s a commitment to a better future.
In conclusion, Desert Control's Q3 2024 report reveals a company that is not just surviving but thriving in a challenging landscape. With innovative technology, strategic partnerships, and a clear vision for the future, Desert Control is well-positioned to make a significant impact in the fight against desertification and water scarcity. The road ahead is promising, and the company is ready to lead the charge towards a more sustainable world.