NuScale(SMR)2024-11-08 01:40Financial Data and Key Metrics Changes - NuScale's cash position improved to 5.1 million restricted [36] - Revenue for Q3 2024 was 7 million in Q3 2023, while net loss decreased to 58.3 million [37] - Operating expenses were reduced to 93.9 million year-over-year, reflecting cost reduction efforts [38] Business Line Data and Key Metrics Changes - The company reported an operating loss of 92.9 million in the previous year [38] - A 20 million customer deposit was announced, related to the RoPower project, indicating progress in pre-engineering services and technology licensing [54] Market Data and Key Metrics Changes - The demand for carbon-free energy is accelerating, particularly driven by data centers, which are expected to increase their power consumption significantly by 2030 [9][8] - Major tech companies are increasingly seeking nuclear energy solutions, with commitments to carbon-free energy [11][12] Company Strategy and Development Direction - NuScale aims to lead in the small modular reactor (SMR) market, emphasizing the importance of nuclear energy in the clean energy transition [24][26] - The company is focused on maintaining a competitive edge through advanced technology, safety, and manufacturing readiness [34][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the critical role of nuclear technology in meeting the growing energy demands of data centers and supporting sustainability goals [33][72] - The company is optimistic about the future, expecting increased interest from hyperscalers and other potential customers for SMR technology [15][23] Other Important Information - NuScale is the only U.S. NRC approved technology with reactors in production, positioning it uniquely in the market [14][30] - The company is actively engaging with various sectors, including oil and gas, for potential energy solutions [18] Q&A Session Summary Question: Thoughts on FERC rejection of Talen in the Amazon Data Center - Management believes the FERC decision will not hinder market progress and highlights the need for SMRs as a solution for incremental power [41][42] Question: Importance of uprate progress for Part 52 approval - Management confirmed that the uprate approval is on track for mid-2025 and is crucial for scaling up to meet customer demands [45][46] Question: Involvement in recent announcements by tech companies - Management noted that while they are in discussions with major tech companies, the nature of those discussions differs from other market announcements [51][53] Question: Customer deposit related to RoPower - The 20 million deposit is linked to progress on the RoPower project, indicating advancement in pre-engineering services [54] Question: Fuel flexibility for higher power output - Management stated that while higher enrichment fuel could technically be used, the current design does not necessitate it [57][58] Question: Department of Energy $800 million light water reactor program - Management clarified that a competitive process is required to partner with the DOE for the program [61] Question: Natural gas development in light of data center power needs - Management acknowledged that while natural gas remains an option, the long-term commitments to decarbonization by tech companies favor nuclear solutions [63] Question: Approval timelines for the 12 module design - Management indicated that the upgrade approval will apply to both six and twelve module designs, with site-specific licensing to follow [66][67]