SANDNES, Norway, Aug. 20, 2024 /PRNewswire/ -- Desert Control AS (DSRT) announces its second-quarter report and interim financial results for the fiscal period ending 30 June 2024.
Desert Control made significant progress in the second quarter of 2024. Technological advancements drove a record number of installations and expanded the U.S. project portfolio, while collaboration with partners advanced key regulatory and operational milestones in the Middle East.
Operational Highlights:
Technological Breakthroughs Drove Record Growth in Installations
-- Increased Production Capacity: Achieved a sixfold increase in LNC
production capacity with a new compact, lightweight prototype, enhancing
deployment efficiency and scalability.
-- Record Number of Installations: Field-testing the new prototype drove a
record number of installations, significantly reducing project execution
time and costs.
-- Enhanced Agility and Scale-Up Readiness: The prototype's high capacity
and lightweight design improve mobility, opening profitable pathways to
more diverse projects and facilitating the transition from pilots to
larger deployments.
Increased Pilot Acquisition Rate and Expanded Markets in the United States
-- Accelerated Pilot Acquisition: Accelerated the pilot acquisition rate,
expanding the U.S. project portfolio from 29 to 38 projects, with strong
performance in citrus, dates, vineyards, and landscaping.
-- Direct to Larger-Scale Pilots: Several projects bypassed small-scale
tests and moved directly to extended (stage 2) pilots, demonstrating
increased market confidence.
-- Expansion in High-Value Markets: Significant progress in golf courses
and sports fields, with multiple new pilots and promising early results,
paving the way for larger-scale contracts by year-end.
Accelerated Regulatory Integration and Solidified Position in the Middle East
-- Regulatory Framework Integration: Progressing toward integrating LNC
into regulatory frameworks as a preferred solution for soil and water
conservation requirements in the UAE.
-- Operational Readiness in Saudi Arabia: Both of Desert Control's licensed
operators are now fully operational with offices, production capacity,
and initial LNC deployments activated.
-- Strategic Pilots and Deployments: Ongoing pilots and projects with
government entities and large enterprises in the UAE and Saudi Arabia
are progressing, with additional strategic deployments underway.
Entered New Strategic Partnerships and Strengthened Market Validation
-- Syngenta Collaboration: MoU with Syngenta underscores the growing
recognition and validation of LNC beyond water conservation, extending
impact to holistic soil health solutions.
-- University of Arizona: The five-year research program with the
University of Arizona continues, with the inaugural interim publication
under peer review.
-- University of California: Initiated research with the industry-leading
Turf Research Center in Riverside to position LNC as a relevant,
trusted, and attractive solution in the golf and turf segment.
Financial Highlights:
In the first half of 2024, Desert Control executed a record number of installations, increased LNC deployment volumes, and doubled LNC revenue compared to the same period the previous year. This progress reflects enhanced operational efficiency, driven by the new prototype LNC production system, the integration of LNC application with irrigation systems, a more streamlined organization, and learnings from the implementation of pilots and projects.
-- Revenue Increase: LNC revenue in Q2 2024 was MNOK 0,5, compared to MNOK
0,02 in Q2 2023. For the first half of 2024, LNC revenue totaled MNOK
1,8, up from MNOK 0,8 in the first half of 2023, driven by larger-scale
deployments and an increased volume of pilots and project installations.
-- Improved EBITDA: Operational efficiency improvements and the transition
to a licensed operator model in the Middle East contributed to an EBITDA
result of MNOK -16 in Q2 2024, an improvement from MNOK -19.5 in Q2
2023. For the first half, EBITDA improved to MNOK -30.4 from MNOK -42.9
in the same period last year.
-- Cash Position: Desert Control ended Q2 2024 with a cash balance of MNOK
91, compared to MNOK 42 in Q2 2023. 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:
Diverse opportunities in the U.S. and Middle East, combined with regulatory integration and technological advancements, are driving the transition towards more significant contracts by year-end and strengthening the foundation for long-term value creation for stakeholders.
Key Figures (in MNOK):
Second quarter 2024 [second quarter 2023 in brackets]
-- LNC Revenue: 0.5 [0.0]
-- Total Revenues: 0.5 [0.5]
-- EBITDA: -16.0 [-19.5]
First half 2024 [first half 2023 in brackets]
-- LNC Revenue: 1.8 [0.9]
-- Total Revenues: 1.8 [2.3]
-- EBITDA: -30.4 [-42.9]
Total cash balance 30.06.24 (bank deposits and funds): 91 [42]
Equity 30.06.24: 100 (equity ratio 94.5%) [68 (91.2%)]
Q2 Report 2024:
-- The information enclosed is subject to the disclosure requirements
pursuant to sections 5-12 of the Norwegian Securities Trading Act.
-- The report can be downloaded from the company webpage:
https://desertcontrol.com/investors/
[https://c212.net/c/link/?t=0&l=en&o=4236418-1&h=2806691410&u=https%3A%2
F%2Fdesertcontrol.com%2Finvestors%2F&a=https%3A%2F%2Fdesertcontrol.com%2
Finvestors%2F]
-- A webcast presentation for Desert Control Q2 2024 Report and Company
Update is hosted on 20 August 2024 at 10.00 AM, Central European Time
(CET). Register: https://go.desertcontrol.com/Q2-2024
[https://c212.net/c/link/?t=0&l=en&o=4236418-1&h=678421314&u=https%3A%2F
%2Fgo.desertcontrol.com%2FQ2-2024&a=https%3A%2F%2Fgo.desertcontrol.com%2
FQ2-2024]
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 [mailto: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 [mailto:leonard.chaparian@desertcontrol.com]
Mobile (NOR): +47 90 66 55 40
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https://news.cision.com/desert-control-as/r/desert-control-releases-q2-2024-report-and-year-to-date-company-update,c4023702 [https://c212.net/c/link/?t=0&l=en&o=4236418-1&h=2042767203&u=https%3A%2F%2Fnews.cision.com%2Fdesert-control-as%2Fr%2Fdesert-control-releases-q2-2024-report-and-year-to-date-company-update%2Cc4023702&a=https%3A%2F%2Fnews.cision.com%2Fdesert-control-as%2Fr%2Fdesert-control-releases-q2-2024-report-and-year-to-date-company-update%2Cc4023702]
The following files are available for download:
https://mb.cision.com/Main/22706/4023702/2951189.pdf DSRT_Q2_2024_REPORT
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Desert Control AS