NuScale(SMR)2025-03-04 04:48Financial Data and Key Metrics Changes - NuScale's cash position increased significantly to 125.4 million at the end of 2023, indicating improved liquidity [35] - Revenue for Q4 2024 was reported at 4.6 million in the same period the previous year, while the net loss for Q4 2024 was 56.4 million in Q4 2023 [37][38] - Operating expenses decreased to 71.8 million in Q4 2023, reflecting management's efforts to reduce costs [39] Business Line Data and Key Metrics Changes - The revenue increase in Q4 2024 was driven by activities supporting RoPower's development of their power plant [38] - NuScale is advancing its responsibilities for RoPower Phase 2 Front-End Engineering and Design, which is expected to provide meaningful revenue and cash flow [8] Market Data and Key Metrics Changes - The U.S. is projected to see a sixfold increase in electricity demand over the next 20 years, driven by factors such as the electrification of industries and the energy needs of AI data centers [16][17] - Data centers are expected to triple their energy use in the next three years, potentially accounting for 12% of the nation's electricity consumption by 2028 [18][20] Company Strategy and Development Direction - NuScale is focused on commercializing its small modular reactor (SMR) technology, positioning itself as the only near-term deployable SMR currently available [9] - The company is committed to supporting energy security and decarbonization initiatives in Romania through the RoPower project [7] - NuScale aims to increase the power output per module from 50 megawatts to 77 megawatts, with a review set to conclude by mid-2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for nuclear energy, highlighting increased interest from various potential off-takers, particularly in the data center sector [23] - The company is optimistic about its competitive strengths in providing reliable clean energy, especially in light of the challenges faced by other advanced reactor technologies [30][32] Other Important Information - NuScale has committed over 2 billion to develop and license its SMR technology, which has received Design Certification from the Nuclear Regulatory Commission [9] - The company is exploring new hydrogen technologies to integrate with its plants, aiming to decarbonize the hydrogen production sector [26] Q&A Session Summary Question: Any potential bottlenecks in signing agreements with large data center companies? - Management indicated that the complexity of putting projects together is the main challenge, not necessarily bottlenecks, and expressed confidence in closing deals soon [45][46] Question: Details on revenue recognition in Q4? - Revenue recognition was based on two contracts related to service delivery and technology licensing [48] Question: Update on the 800 million grant for Gen 3 reactors? - Management is evaluating participation in the grant and is in discussions with the Department of Energy for clarity [58][60] Question: Next steps for the RoPower project? - The project is progressing well, with a final investment decision expected in Q4 2025 [68] Question: Steps left for the upgrade to 77 megawatts? - The technical requirements for the NRC have been completed, and the focus is now on administrative processes [77] Question: View on traditional nuclear plants and their potential restart? - Management believes that small modular reactors are the future, as there are limited options for restarting traditional large nuclear plants [82]