AI Terminal
Desert Control AS
Earnings Release • Feb 25, 2022
3577_rns_2022-02-25_e4e55b69-097d-42ee-9ee3-44efa95211ad.pdf
Earnings Release
Open in ViewerOpens in native device viewer
DSRT: H2 2021 Report and Interim Financial Results | Desert Control AS
Sandnes, Norway, 25 February 2022 – Desert Control AS (DSRT) today published its H2 Report and Interim Financial Results for the fiscal second half of 2021, ending 31 December 2021.
Desert Control specializes in climate-smart Agri-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay (LNC) enables sustainable ecosystem management by restoring and protecting soil's ability to preserve water and increase yields for agriculture, forests, and green landscapes.
After the successful IPO in H1, Desert Control delivered on its commitment to accelerate operational scaleup, increase production capacity, and execute strategic projects and market activities in H2. Key achievements include:
- Expanded to the U.S. and established Desert Control Americas Inc. Hired first U.S. employees, finalized agreement with the University of Arizona, and started local assembly of the first mobile LNC production unit to support the upcoming pilot projects in the U.S.
- Carried out the Mawarid phase 1 pilot project of the MoU with Abu Dhabi based Mawarid Holding Investment
- Successfully executed stage two of the MoU with Mawarid Holding Investment. Entered strategic partnership and concluded agreement to launch a dedicated new sales and distribution company for LNC in the United Arab Emirates
- Achieved 3X increase in LNC production capacity
- Succeeded with 5X organizational growth to build operational capability to deliver projects and utilize LNC production capacity
- Gained global awareness as a selected Global Innovator by Expo Live, featured at EXPO 2020 Dubai
- Established new R&D center and innovation lab in Norway to strengthen innovation capabilities, accelerate development of digital platforms and formulation algorithms, and advance "green-box" reactor development
The next phase targets full-scale commercialization in the UAE through the new sales and distribution company. Desert Control concludes H2 2021 with a strong position and remains well-funded to execute the planned commercialization and market expansion ahead.
A webcast presentation for Desert Control H2 2021 Report and Interim Financial Results is hosted on 25 February 2022 at 10.00 AM, Central European Time (CET / UTC+1).
Interim Financial Highlights 2nd half 2021 (IFRS adjusted) [2H 2020 in brackets]
- Revenue NOK 3.1M [NOK 0.2M]
- EBITDA: NOK 18.2M [NOK -7.5M]
- Net Income: NOK -18.7M [NOK -7.6M]
- Gross R&D Investments: NOK 6.9M [NOK 2.9 M]
- Innovation Norway / Skattefunn grants NOK 4.3M [NOK 1.1M]
Interim Financial Highlights for the financial year 2021 (IFRS adjusted)
[2020 in brackets]
- Net proceeds from capital injection: NOK 190M
- Total cash balance 31.12.21 (bank deposits and funds): NOK 179.3M
- Equity 31.12.21 NOK 194M (equity ratio 96%)
- Revenue NOK 3.1M [NOK 1.0M]
- EBITDA: NOK 31.1M [NOK -11.1M]
- Net Income: NOK -31.8M [NOK -11.2M]
- Gross R&D Investments: NOK 14.4M [NOK 4.5M] transferred to P&L according to IFRS accounting policy
- Innovation Norway/ Skattefunn grants NOK 8.7M [NOK 1.1M] transferred to the P&L according to the IFRS accounting policy
Annual report with audited 2021 financials is scheduled to be released on 28 April.
Company Update: Second Half 2021
The Company grew from 10 to 51 employees in the second half, tripled its LNC production capacity, secured a strategic partnership in the Middle East, and expanded its operation to the United States.
Expansion to the US
Desert Control Americas Inc. was successfully incorporated in Q4 as a Delaware C corporation with its office in Palo Alto, California. Desert Control Americas is wholly owned by Norwegian Desert Control AS. The US operational headquarter will be located strategically to serve California, Arizona, Nevada, and New Mexico as its initial target market. The first employees in the US have been hired and started as of 15 December. On 17 December, the Company reached a final agreement with the University of Arizona for the first pilot project on American soil, which will launch in Q1 2022. Discussions with three additional Universities for collaboration initiatives related to LNC are ongoing. The construction of the first mobile LNC production unit for pilot projects in the US has started, and the unit is expected to be operational in Q1 2022.
Significant progress for Desert Control Middle East LLC
Desert Control Middle East focused its efforts on three main priorities during the second half. (1) The Mawarid initiative, (2) Building LNC production units to increase capacity, and (3) Hiring activities to support the capacity ramp-up. With two new LNC production clusters completed on 15 December, Desert Control is reaching its 2021 production capacity objective. Furthermore, this also demonstrate the possibility to quickly manufacture new clusters if increasing customer demand is likely to fill the capacity. Based on these achievements, the company is now preparing to move forward with previously completed pilots. The objective going forward is to convert pilots and sales opportunities to commercial contracts for delivery through the new sales and distribution company in UAE.
Desert Control Middle East grew from 3 FTEs in Q1 to 35 FTEs in Q4. Recruitment activities suffered some delays due to Covid-19. Most new hires are field workforce-related for the operation of LNC production. Each cluster (60,000 l/h capacity) is run by eight operators, a field technician, and a supervisor. Since August, current operational staff in-service has gained significant experience running the first cluster and will serve as trainers for efficient onboarding of new hires. Recruitment is ongoing to staff 3 clusters fully.
The Mawarid Desert Control partnership
On 15 December, Desert Control and Mawarid announced entering strategic partnership by forming a new sales and distribution company for LNC in Abu Dhabi. The announcement follows the MOU and pilot announced on 8 June 2021. Further to the pilot results, the parties agreed to execute stage two of the MOU by creating a new company that targets accelerated deployment and full-scale commercialization of LNC in the UAE.
The new company will be incorporated as a limited liability company in Abu Dhabi under a 49/51 percentage shareholding between Desert Control and Mawarid. The 51% Mawarid shareholding enables the new Company to be recognized as a local entity in the UAE. Being a local entity ensures the Company is fully qualified to deliver LNC and services to governmental, public, and private sectors. Backed jointly by reputable shareholders, the new sales and distribution company will be strategically positioned in the Middle East region.
The parties have agreed on the essential elements of a business plan, formed a roadmap of future expansions, and agreed on cash requirements necessary to establish and develop the new Company. Mawarid will support the new Company with sufficient working capital to develop and grow the business. The business plan further targets alignment with Desert Control's previously announced plan for the ramp-up of LNC production capacity.
Under this agreement, the new Company is formed with sales and distribution rights for LNC across the Middle East and North Africa (MENA) and will be Desert Control's exclusive partner in the UAE. The Company will buy LNC from Desert Control at arms-length commercial terms. The Company will further resell LNC in combination with implementation and turnkey services for the treatment of land areas in the local markets. Desert Control remains the sole owner of all its IP, patents, data, and know-how. It will support the new Company with methodology, protocols, and quality assurance measures to ensure delivery excellence and customer satisfaction. Desert Control also remains the owner of its production technology. Desert Control Middle East will operate all clusters (LNC production units), using its expertise and experience to provide tailor-made LNC to the new sales and distribution company for all its projects and deliveries.
Mawarid manages more than 200,000 hectares of land, including 13 million forest trees, 550,000 date palms, nature reserves, landscapes, and agricultural land. The new Company will be strategically positioned to provide LNC services to preserve water and strengthen food security by enabling more efficient use of resources for the Mawarid managed areas. Further, and more importantly, the Company will aim to become a leading provider of climate-smart agriculture solutions to combat desertification and soil degradation in the UAE and MENA region.
The strategic partnership will allow Desert Control to focus entirely on the continuous development of its LNC technology and the production of LNC. Sales, distribution, delivery, and the application of LNC in the field will be managed by the new jointly owned Company. The sales and distribution company will have access to Mawarid's 11,000 strong workforce with significant experience in agriculture, forestry, landscaping, and nature conservation. The synergistic partnership with Mawarid in the Middle East allows Desert Control to focus on its core, allowing for faster scale-up with optimal utilization of capital and resources.
The next phase targets full-scale commercialization in the UAE through the new sales and distribution company which will be incorporated during Q1 2022 with expected revenue from Q2 2022.
3X increase of LNC production capacity
Desert Control maintained its objective to increase production capacity from 60,000 l/h in H1 to 180,000 l/h by the end of H2. Additional personnel for the operation of the new clusters have been recruited and onboarded, and the added capacity will ensure a successful start for the new Mawarid Desert Control partnership company. The two clusters added in December were built in just six week and demonstrate that the production capacity can be increased quickly whenever needed.
5X Growth of the organization
During H2, Desert Control grew the organization by 5X going from 10 to 51 passionate and dedicated employees. The Company has implemented a recruitment and onboarding process to ensure optimal balance between expertise, experience, and personal values to build a strong and uniting culture. The Company further values diversity. Excluding field workforce, 33% of the employees are female, and the 51 employees are made up of 16 nationalities, including Norwegian, Thai, Iranian, Filipino, Pakistani, British, Iraqi, Egyptian,
Indian, Sudanese, Syrian, Swedish, Danish, Ugandan, Cameroonian, and Tunisian. As per March 1st the total number of employees is 63.
Expo 2020 Dubai highlights
Expo Live features desert Control as a selected Global Innovator. A unique presentation of Liquid Natural Clay is showcased at the good place pavilion, and LNC demos are also running in the sustainability pavilion of EXPO 2020 Dubai. The event runs until the end of March 2022 and generates significant leads and opportunities, and global awareness. Recently Bill Gates visited Desert Control to learn about the Company and the LNC innovation.
New R&D center in Norway
On 25 November, Desert Control launched a new R&D center in Stavanger, Norway. The center will serve as the Company's global innovation lab to consolidate all technology development and intellectual property in a central hub. The center's objective is to strengthen innovation capabilities, accelerate development of digital platforms, drive continuous improvement of LNC formulation through algorithms enabled by AI and machine learning, and advance the development of "green-box" reactors and control systems.
Green-box reactors and control systems
The core of the patented LNC technology is the process where clays and natural minerals gets into its liquid state with unique properties. This process takes place inside a reactor. The reactor and other mechanical components of the mobile LNC production units will be managed by control systems that will integrate with the Company's centralized formulation database and its global data collection networks. By centralizing the development of "green-box" reactors and control systems in Norway, the Company gains strong control of intellectual property while enabling outsourcing of the building of 20-ft container-sized LNC production units without exposing core IP.
Other priorities of the R&D center are to advance the areas of digitalization, formulation, and automation. LNC is tailored-made specific to unique combinations of various soils, plants, water qualities, and environmental factors. Formulations are managed mainly manually at the current stage, requiring more extensive operators' training. R&D initiatives aim to fully automate this process similar to LCD-operated coffee machines that can formulate the desired drink with the touch of a finger. This will, in turn, enable future evolution of the Company's business model that can drive exponential scalability.
Impact from Covid pandemic
The regulations to prevent the spread of the pandemic have been adhered to. Employees have been on and off work, in quarantine and isolation. A total of more than 300 working days have been lost during 2nd half 2021 and first months of 2022.
Logistics have also been affected, at par with other international business.
Outlook: First Half 2022
Desert Control targets continued operational scale-up, execution of strategic projects in the US and the UAE, and full-scale commercialization in 2022. Key objectives for the first half include:
- Successfully establish the new sales and distribution company in partnership with Mawarid in Q1 and achieve sales with effect from Q2
- Transfer pilots and early-stage opportunities in the UAE to the new Mawarid Desert Control company
- Implement the first pilot projects on American soil in collaboration with the University of Arizona
- Launch additional LNC collaboration initiatives with universities in the US
- Align production capacity with the business plan and market demand
- Strengthen Desert Control's executive leadership team
- Build capabilities to support the next stage of full-scale commercialization in the UAE
Webcast Presentation 25 February 2021 Desert Control H2 2021 Report and Interim Financial Results
Desert Control is hosting a webcast presentation following its H2 2021 Report and Financial Results, 25 February 2022, at 10:00 AM Central European Time (Oslo, UTC+1).
Registration: https://desertcontrol.zoom.us/webinar/register/7816451668620/WN_gNoNVqAgSH6UrdqhZbkjww
After the presentation, there will be a moderated question and answers session. Questions for Q&A can be submitted in advance to [email protected]
DSRT: Financial Reporting Schedule
Annual Report 2021 28 April 2022 Quarterly report Q1 25 May 2022 Half-yearly report Q2 26 August 2022
The company decided to move from bi-annual reporting in 2021 to quarterly reporting from 2022 onwards.
About Desert Control
Desert Control specializes in climate-smart Agri-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay (LNC) enables sustainable ecosystem management by restoring and protecting soil's ability to preserve water and increase yields for agriculture, forests, and green landscapes.
LNC enables sand and degraded soil to retain water and nutrients, thus increasing crop yields and ecosystem resilience while preserving water resources by up to 50%.
Agriculture and food production already consume more than 70% of all available freshwater. Desertification and soil degradation drive a negative spiral of increasing water consumption and decreasing yields for global food production. Feeding our planet's growing population will require more food in the next 40 years than was produced over the last 500 years, putting even more pressure on vital resources such as water. This is the problem Desert Control is determined to solve. According to the United Nations, thirty million acres of fertile land (equal to Pennsylvania) perish to desertification annually, representing an annual loss of \$490 billion to the global economy. Desert Control's vision is to make our planet earth green again.
Inquiries For more information, please contact:
Ole Kristian Sivertsen
Chief Executive Officer Email: [email protected] Mobile: +47 957 77 777
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 guaranteeing 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 in 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.
H2 Report 2021
The information enclosed is subject to the disclosure requirements pursuant to section 5-12 in the Norwegian Securities Trading Act.
Statement by Management and Board of Directors
Desert Control H2 2021 Report and Financial Results
Management and the Board of Directors have considered and approved the interim consolidated financial statements of Desert Control AS ("the Company") and its subsidiaries (collectively, "the Group") for the second half-year ended 31 December 2021. The interim report, which has not been audited by the Company's independent auditor, has been prepared in accordance with International Financial Reporting Standards (IFRS) and interim financial reporting requirements for Euronext listed companies. The introduction of IFRS has led to adjusted profit and loss reports and balance sheets for 2020 and 2021.
In our opinion, the accounting policies used are appropriate, and the interim report gives an accurate and fair view of the Company's consolidated financial position as of 31 December 2021. In our opinion, Management's review provides an accurate and fair presentation of performance, developments, and results for the respective fiscal period and overall financial position of the Group's operation, in addition to a description of the most significant risks and elements of uncertainty facing the Group.
The Board of Directors Desert Control AS
Sandnes, Norway, 24 February 2022
Financial Statements
Interim group consolidated financial statements
Unaudited NOK (in thousands)
Overview of the Company's business activities, business model, revenue sources, market segments, geographic regions, and corporate structure is described under "Note 1" page 10.
Desert Control has introduced IFRS as accounting policy at 31.12.2021. Consequently, the profit & loss and balance sheet has been adjusted to reflect the position as if the IFRS policy had been the basis for the accounts for both 2020 and 2021.
Capitalized R&D expenses for 2020 has been transferred to profit & loss 2020 by NOK 3 441k and by NOK 7 891k for 2021. The calculated expense of employees' share incentive program has been registered to profit and loss 2020 by NOK 1 608k and by NOK 811k for 2021. Because of this, the total profit & loss for the Group has been depressed by NOK 5 049k for 2020 and NOK 8 702 for 2021 compared to the former GRS accounting policy.
Interim Consolidated Profit and Loss (P&L) Statement
All figures in NOK 000s
| 2021 | 2020 | 2H 2021 | 2H 2020 | ||
|---|---|---|---|---|---|
| Total Revenue | 3 127 | 1 041 | 3 127 | 220 | |
| Cost of Goods Sold (COGS) | 563 | 40 | 369 | 36 | |
| Gross Margin | 2 564 | 1 001 | 2 758 | 184 | |
| Payroll | 14 993 | 7 290 | 10 413 | 3 484 | |
| Other Expenses | 18 622 | 4 813 | 10 500 | 4 178 | |
| Operating Expenses | 33 614 | 12 103 | 20 913 | 7 662 | |
| EBITDA | - | 31 050 - |
11 102 - |
18 155 - |
7 478 |
| Depreciation | 1 546 | 9 | 1 045 | 9 | |
| Impairment | 644 | 644 | - | ||
| EBIT | - | 33 241 - |
11 110 - |
19 844 - |
7 487 |
| Finance Expenses | - | 1 476 | 119 - |
1 120 | 124 |
| Net Income | - | 31 765 - |
11 229 - |
18 724 - |
7 611 |
| Balance sheet | ||
|---|---|---|
| All figures in NOK 000s | 31.12.2021 | 31.12.2020 |
| Fixed assets | ||
| Research & development | - | |
| Goodwill | 6 504 | 6 345 |
| Property, plant and equipment | 10 425 | 1 385 |
| Right-of-use assets | 2 006 | |
| Total fixed assets | 18 935 | 7 730 |
| Current assets | ||
| Inventory | 99 | - |
| Debtors | 544 | - |
| Other short-term receivables | 5 597 | 2 002 |
| Fixed income funds | 77 347 | - |
| Cash and bank deposits | 101 924 | 28 935 |
| Total current assets | 185 510 | 30 937 |
| Total assets | 204 445 | 38 667 |
| All figures in NOK 000s | 31.12.2021 | 31.12.2020 |
| Equity | ||
| Share capital (40 724 639 shares at 0.003) | 122 | 70 |
| Other paid-up capital | 230 849 | 40 994 |
| Retained earnings | (36 701) | (5 748) |
| Total equity | 194 270 | 35 316 |
| Non-current Liabilities | ||
| Non-current lease liabilities | 1 423 | |
| Total non-current liabilities | 1 423 | - |
| Current Liabilities | ||
| Current lease liabilities | 528 | |
| Trade creditors | 2 523 | 838 |
| Public duties payable | 912 | 415 |
| Other current liabilities | 1 608 | 2 098 |
| Current provisions | 3 181 | - |
| Total liabilities | 8 751 | 3 351 |
| Total equity and liabilities | 204 445 | 38 667 |
Consolidated Statement of Cash Flows
All figures in NOK 000s
| 2021 | 2H 2021 | 2020 | |
|---|---|---|---|
| Cash flow from operating activities | |||
| Profit before taxes | (31 765) | (18 724) | (11 229) |
| Taxed paid | - | - | - |
| Depreciation and amortization | 2 190 | 1 689 | 9 |
| Changes in working capital | 1 162 | 2 498 | 39 165 |
| Cash used in operating activities | (28 412) | (14 537) | 27 945 |
| Investments in good will | 159 | 9 | (217) |
| Investments in fixed assets | (13 395) | (12 981) | (1 168) |
| Investments in fixed income funds | (77 347) | 12 653 | - |
| Net cash used in investment activities | (90 583) | (318) | (1 385) |
| Cash flow from financing activities | |||
| Non-current lease liabilities | 1 423 | 1 423 | |
| Capital injection | 189 907 | 4 | 1 667 |
| Net cash flow from financing activities | 191 331 | 1 428 | 1 667 |
| Net change in cash equivalents | 72 335 | (13 427) | 28 227 |
| Net foreign exchange differences | 654 | 766 | 174 |
| Cash and cash equivalents at beginning of period | 28 935 | 114 585 | 534 |
| Cash and cash equivalents at end of period | 101 924 | 101 924 | 28 935 |
Notes to the Financial Statements
Unaudited NOK (in thousands)
Note 1: Summary of Significant Accounting Policies
Company Overview
Desert Control specializes in climate-smart Agri-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay restores and protects soil, reducing water usage for agriculture, forests, and green landscapes.
Liquid Natural Clay (LNC) enables sand and degraded soil to retain water and nutrients. LNC increases crop yields while reducing water and fertilizer consumption by up to 50%.
Desert Control's business model is service-based and targets turnkey projects for LNC treatment of land areas, vegetation, crops, plants, trees, etc. LNC is produced on-site at customer locations using mobile factories. Further, the LNC is applied across the customer's land areas using existing irrigation systems and techniques. LNC is sprayed or applied directly onto the surface and percolates into the ground forming a soil structure that retains water and nutrient like a sponge. One LNC treatment may last 3-5 years, followed by periodic top-up to maintain the optimal ability to retain water and nutrients. The Company's revenue model is pre-paid project deliveries direct (B2B) to customers within the segments, agriculture, forestry, and landscaping. Project pricing considers the size of land, type of vegetation, crops, number of trees, etc. Additional revenue sources may come from (1) periodic maintenance and (2) digital subscription services related to soil health monitoring, water management optimization, and digital farming services for precision agriculture and sustainable land management.
Desert Control AS is a private limited liability company incorporated under the laws of Norway. The Group has active subsidiaries in Abu Dhabi and Dubai, the United Arab Emirates, and California, USA.
The United Arab Emirates is Desert Control's first geographic market, followed by broader expansion in the Middle East region. In 2022 the Company aims to expand operations in the United States, focusing on California, Arizona, Nevada, and New Mexico. More than 110 countries worldwide suffer accelerating desertification, loss of fertile soil, and water scarcity. Desert Control's ambition is to develop a global business with its vision of making earth green again.
Basis for Preparation
The interim report, which has not been audited by the Company's independent auditor, has been prepared in accordance with International Financial Reporting Standards (IFRS) and interim financial reporting requirements for Euronext listed companies. The introduction of IFRS has led to adjusted profit and loss reports and balance sheets for 2020 and 2021.
Note 2: Fixed Assets
All figures in NOK 000s
Plant, machinery,
| fixtures | Right of use assets | Goodwill | |
|---|---|---|---|
| Net acquisition costs 31.12.2020 | 1 520 | - | 6 562 |
| + inflow purchased fixed assets | 10 263 | ||
| + other adjustments | 2 974 | - | |
| Acquisition costs 31.12.2021 | 11 783 | 2 974 | 6 562 |
| Accumulated depreciation 31.12.2021 | 1 358 | 968 | - |
| Book value 31.12.2021 | 10 425 | 2 006 | 6 562 |
| This year's ordinary depreciations | 579 | 968 | |
| This year's impairment cost | 644 | ||
| Economic life | 3-5 years |
The goodwill represents the unallocated purchase price of the Desert Control UAE business and it is not amortized as the value is deemed intact as per 31.12.2021
Note 3: Bank deposits and fixed incomes funds
All figures in NOK 000s
| 31.12.2021 | 31.12.2020 | |
|---|---|---|
| Bank deposits | 31 623 | 28 697 |
| Bank deposits redeemable at 30 days | 60 100 | |
| Bank deposits redeemable at 90 days | 10 000 | |
| Tax deduction account | 201 | 238 |
| Total bank deposits | 101 924 | 28 935 |
| Fixed Income funds |
| Fixed income funds can be redeemed at short notice | 77 347 | |
|---|---|---|
| The total liquidity represented by bank deposits and funds | 179 271 | 28 935 |
|---|---|---|
| ------------------------------------------------------------ | --------- | -------- |
Note 4: Equity
All figures in NOK 000s
| Retained | ||||
|---|---|---|---|---|
| Share capital | Share premium | earnings | Total equity | |
| As at 01.01.2021 | 70 | 40 994 | (5 531) | 35 533 |
| Result for the year | (31 818) | (31 818) | ||
| Capital increase gross | 53 | 199 946 | 199 999 | |
| Cost of capital increase | (10 091) | (10 091) | ||
| Other adjustments | 648 | 648 | ||
| Equity as of 31.12.2021 | 122 | 230 849 | (36 701) | 194 270 |
Note 5: Top 20 Shareholders as of 31.12.2021
| No of shares | Account name | % of total |
|---|---|---|
| 5 900 000 | OLESEN CONSULT HVAC AS | 14,48 |
| 1 761 720 | J.P. MORGAN BANK LUXEMBOURG S.A. | 4,32 |
| 1 754 715 | MONSUNEN FORVALTNING AS | 4,31 |
| 1 650 000 | OLE MORTEN OLESEN | 4,05 |
| 1 543 371 | BEYOND CENTAURI AS | 3,78 |
| 1 485 860 | NORDNET LIVSFORSIKRING AS | 3,64 |
| 1 360 000 | NESSE & CO AS | 3,34 |
| 1 355 431 | LITHINON AS | 3,33 |
| 1 266 087 | DnB NOR Bank ASA | 3,11 |
| 1 215 275 | LIN AS | 2,98 |
| 1 135 843 | ATLE IDLAND | 2,79 |
| 1 000 000 | JAKOB HATTELAND HOLDING AS | 2,45 |
| 995 109 | CACEIS Bank | 2,44 |
| 958 275 | THE NORTHERN TRUST COMP LONDON BRANCH | 2,35 |
| 883 147 | INVESTORE FINANS AS | 2,17 |
| 819 671 | CLEARSTREAM BANKING S.A. | 2,01 |
| 789 484 | JP MORGAN CHASE BANK N.A LONDON | 1,93 |
| 627 715 | SORTUN INVEST AS | 1,54 |
| 627 715 | GLOMAR AS | 1,54 |
| 560 000 | OKS CONSULTING AS | 1,37 |
| 27 689 418 | 20 largest shareholders | 67,99 |
| 40 724 639 | Total shares | 100,00 |
ESG and Impact
Impact on External Environment and Sustainability
Liquid Natural Clay (LNC) can reduce water consumption for agriculture, forests, and green landscapes by up to 50%. The amount of water required to produce LNC is recovered within 2-3 weeks (offset by irrigation water savings). Increased crop yields with improved water efficiency contribute significantly to the United Nations Sustainable Development Goals (SDGs), including reducing hunger and securing access to clean water. Arid regions using energy-intensive seawater desalination can further significantly reduce CO2 and greenhouse gas (GHG) emissions.
LNC enables sandy soil and desert land to retain water and nutrients. Reduction of water consumption further allows for reducing fertilizer usage. Reduced leaching of fertilizers and pesticides through the soil can further minimize the risk of chemical run-off reaching through to natural water systems and oceans. Stopping fertilizer and pesticide leaching can improve life below the water by reducing ocean acidification and eutrophication.
According to the Intergovernmental Panel on Climate Change (IPCC), restoring degraded soil ecosystems can globally offset 5-6 Gt of CO2 annually. Even degraded soils have degrees of stored carbon. When tilling or mechanically working amendments into the ground, carbon exposed to oxygen may turn into CO2 and escape into the atmosphere. LNC can be applied directly to the ground's surface without intervention to the soil. LNC percolates into the ground in a non-intrusive way without exposing any carbon to surface air oxygen, safeguarding the carbon storage of soil ecosystems and fostering increased carbon sequestration.
Non-intrusive soil treatment is further gentle to fragile soil-ecosystems, home to 95% of all biological species on earth. Reclaiming and protecting soil is therefore critical to preserve and restore essential biodiversity.
Mining clay and the production of LNC requires energy. Logistics and transportation of material, equipment, and personnel and manufacturing of equipment also require energy. Desert Control strives to reduce energy consumption in all stages of the process and facilitate the use of renewable energy sources wherever available. These negative impact factors are, by far, surpassed by the sum of positive impacts from stopping and reversing desertification and soil degradation, reducing water consumption, and other environmental benefits.
LNC has no adverse impact on any of the 17 United Nations Sustainable Development Goals (SDGs). Further, LNC has a significant direct positive impact on 9 of the SDGs.
- end of report -
