Desert Control (DSRT) Q4 2024 earnings summary

Executive summary

• Achieved major technological breakthroughs in 2024, increasing LNC production capacity eightfold and enabling application through irrigation systems, driving scalability and cost efficiency.

• Revenues and project deployments more than doubled in 2024, with a tenfold increase projected for 2025, driven by strong commercial traction and new business models in the US and Middle East.

• Launched pay-as-you-save model in the US golf market, securing major contracts and recurring revenue streams.

• Selected for the UN World Food Programme Innovation Accelerator, with a funded demonstration project in Iraq planned for 2025.

• Middle East licensing revenue and LNC volumes tripled from Q3 to Q4 2024, with larger-scale projects and landmark agreements in Saudi Arabia.

Financial highlights

• 2024 LNC revenue reached NOK 2.17 million, up from NOK 0.89 million in 2023; total revenue and other income declined due to a NOK 15.54 million one-off in 2023 from Middle East licensing transition.

• Full-year EBITDA improved to NOK -56.78 million from NOK -60.05 million in 2023, excluding the 2023 one-off, representing a NOK 19 million improvement.

• Net income for 2024 was NOK -53.14 million, compared to NOK -65.27 million in 2023.

• Cash balance at year-end 2024 was NOK 64 million, down from NOK 119 million at end-2023; no interest-bearing debt.

• Equity ratio remained strong at 90.7% at year-end 2024.

Outlook and guidance

• Anticipates more than tenfold increase in LNC volumes and revenues in 2025, driven by US and Middle East expansion and a diversified revenue model.

• Commercial launch of next-gen production system in H2 2025 to unlock operational efficiencies and new revenue streams.

• Expects to be cash flow positive at $10–12 million in annual revenue, likely in 2026.

• US contracted revenues and Middle East LNC volumes expected to grow significantly in 2025.