Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NuScale Power Corp (SMR, Financial) is positioned to meet the increasing demand for carbon-free energy, particularly from data centers requiring reliable power.
- The company is the only U.S. NRC-approved technology with reactors already in production, leading in near-term deployability.
- NuScale's SMR technology offers scalability, availability, and reliability, making it attractive to hyperscalers and tech companies.
- International interest in NuScale's technology is growing, with developments in regions like East Asia, Eastern Europe, and Africa.
- NuScale has a strong financial position with no debt and an improved cash position, reflecting disciplined budgeting and cost optimization efforts.
Negative Points
- NuScale reported a significant net loss of $45.5 million for Q3 2024, indicating ongoing financial challenges.
- Revenue for the quarter was only $0.5 million, a decrease from $7 million in the same period the previous year.
- The company faces risks and uncertainties related to the regulatory environment and the need for further approvals.
- Negotiating agreements with potential customers is a complex and time-consuming process, which may delay sales goals.
- There is competition from other nuclear technologies and energy sources, which could impact NuScale's market position.
Q & A Highlights
Q: How does the FERC rejection of Talen in the Amazon data center impact NuScale's business, and does it increase interest in SMRs?
A: John Hopkins, CEO, stated that while the FERC decision was quick, it is still early to determine its full impact. He believes it won't significantly hinder market progress and acknowledges that SMRs provide incremental power, which could drive further interest.
Q: What is the significance of the uprate approval expected in mid-2025, and are customers waiting for this before proceeding?
A: John Hopkins, CEO, explained that the uprate to 77 megawatts per module is crucial for economic and customer demand reasons. The approval process is on track, and while some customers are interested in the uprate, discussions are progressing without delays.
Q: Was NuScale involved in recent announcements by tech companies regarding nuclear energy, and how do these align with NuScale's business model?
A: Robert Hamady, CFO, noted that while NuScale was not directly involved in those announcements, the ENTRA1 model offers a unique approach. John Hopkins, CEO, added that these announcements validate the interest in nuclear energy, and NuScale is in discussions with similar companies.
Q: Can NuScale's modules use higher enrichment fuels like LEU+ or HALEU to increase power output?
A: Clayton Scott, Chief Commercial Officer, stated that while technically possible, the current design is optimized for existing enrichment levels, and higher enrichment is not necessary for their certified design.
Q: How does the Department of Energy's $800 million light-water reactor program impact NuScale, and what is the process for participation?
A: John Hopkins, CEO, explained that participation requires forming a team with partners for a competitive cost-share application. Clayton Scott, CCO, added that the DOE will evaluate various applications and projects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
