NuScale Power Reports Fourth Quarter and Full Year 2023 Results
- None.
- NuScale reported a net loss of $56.4 million for the fourth quarter of 2023, an increase from the net loss of $47.2 million for the same period in 2022.
- The net loss for the twelve-month period ended December 31, 2023, was $180.1 million, higher than the net loss of $141.6 million for the same period in 2022.
Insights
The acceptance of NuScale Power Corporation's Standard Design Approval application by the U.S. Nuclear Regulatory Commission is a significant milestone in the energy sector, particularly for the advancement of small modular reactor technology. The company's focus on commercialization and the initiation of manufacturing for NuScale Power Modules indicates a shift towards the operational phase, which is crucial for meeting the increasing demand for carbon-free energy solutions. The potential increase in power output from an uprated 77 MWe module design could position NuScale to meet the needs of a broader customer base, enhancing its competitive advantage in the market.
However, the financial update reveals a substantial net loss, despite an increase in revenue year-over-year. While the company's balance sheet shows a strong cash position with no debt, the reported net losses underscore the challenges faced in the capital-intensive nuclear industry during the development phase. NuScale's cost efficiency actions to save $50-60 million annually may help in optimizing resources, but it's important to monitor how these savings impact the company's growth trajectory and ability to capitalize on commercial opportunities.
NuScale Power's progress in SMR technology aligns with global efforts to transition to low-carbon energy sources. The environmental implications of deploying SMRs are considerable, as they offer a more flexible and scalable alternative to traditional nuclear power plants. This could lead to wider adoption in various industrial applications, including hydrogen and ammonia production, which are key components in the renewable energy landscape. The company's advancement in this field may influence policy decisions and encourage the adoption of clean energy technologies, contributing to the reduction of greenhouse gas emissions.
It is also worth noting the strategic importance of receiving the first-ever U.S. NRC design approval for an SMR. This regulatory milestone not only enhances NuScale's credibility but also sets a precedent for future SMR deployments, potentially shaping environmental policy and regulation in the nuclear energy sector.
From a financial perspective, the juxtaposition of NuScale Power's increased revenue against its widening net loss presents a complex picture for investors. The company's strategic redirection towards revenue-generating projects and securing new orders suggests a proactive approach to achieving long-term profitability. However, investors should consider the inherent risks associated with the long sales and development cycles typical of the nuclear industry.
The company's lack of debt and substantial cash reserves are positive indicators of financial health, providing a buffer as it navigates the capital-intensive phases of SMR development and commercialization. The market's reception of NuScale's cost-saving measures and resource optimization will be critical to watch, as these efforts are intended to streamline operations and improve the company's strategic positioning.
- Continued progress toward commercialization of small modular reactor (SMR) technology to meet consumer demand for safe, reliable, 24/7 and carbon-free baseload energy
- Planning underway for RoPower project’s Phase 2 Front-End Engineering and Design (FEED) work
-
Standard Design Approval application accepted and under review by the
U.S. Nuclear Regulatory Commission (NRC) - Doosan Enerbility continues to produce forgings and materials associated with the manufacture of the first NuScale Power Modules™
- Company executed a resource optimization plan to reduce expenses and better position NuScale commercially, financially and strategically
“Over the course of 2023, we made significant progress towards commercializing our SMR technology, including continued activities to ensure readiness for manufacturing of our first NuScale Power Modules, building traction amongst data centers and further developing industrial applications for SMRs, such as process heat, hydrogen, and ammonia production,” said John Hopkins, President and Chief Executive Officer of NuScale Power. “Additionally, as the first and only SMR to receive
Business Update
- RoPower project working to advance into the next phase of development by initiating Phase 2 Front-End Engineering and Design.
-
NuScale technology was selected by Standard Power to support the development of two SMR-powered facilities in
Ohio andPennsylvania . The facilities are planned to produce nearly 2 GW of clean energy through the deployment of 24 NuScale Power Modules. - Standard Design Approval (SDA) application for an uprated 77 MWe module design was accepted for review by the NRC in July 2023 and NuScale received a schedule for an anticipated 24-month review process. The increased power output will support the capacity needs of a wider range of customers with 12 modules producing nearly a gigawatt of electricity.
- As NuScale accelerates its commercialization efforts, it is also initiating the manufacture of NuScale Power Modules. Notably, our supply chain partners commenced the production of long lead time components, including forgings and other materials associated with the first NuScale Power Modules.
Financial Update
-
Balance sheet includes cash and equivalents of
$125.4 million $5.1 million -
In response to the burgeoning market opportunities and the reality of lengthy sales and development cycles, in January 2024, NuScale announced cost efficiency actions projected to result in approximately
$50 -60 million -
Revenue of
$4.6 million $56.4 million $3.4 million $47.2 million $22.8 million $180.1 million $11.8 million $141.6 million
Conference Call:
NuScale will host a conference call today at 5:00 p.m. ET. A live webcast of the presentation will be available by dialing (888) 550-5460 with conference ID 4347254 or by visiting the Events & Presentations page.
A replay of the webcast will be available for 30 days.
About NuScale Power
NuScale Power Corporation (NYSE: SMR) is the industry-leading provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology, with a mission to help power the global energy transition by delivering safe, scalable, and reliable carbon-free energy. The company’s groundbreaking SMR technology is powered by the NuScale Power Module™, a small, safe, pressurized water reactor that can each generate 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross), and can be scaled to meet customer needs through an array of flexible configurations up to 924 MWe (12 modules) of output.
As the first and only SMR to have its design certified by the
Founded in 2007, NuScale is headquartered in
Forward Looking Statements
This release may contain forward-looking statements (including without limitation statements to the effect that the Company or its management "will," "believes," "expects," “anticipates,” "plans" or other similar expressions). These forward-looking statements include statements relating to strategic and operational plans, capital deployment, future growth, new awards, backlog, earnings and the outlook for the company’s business.
Actual results may differ materially as a result of a number of factors, including, among other things, the Company’s liquidity and ability to raise capital, the severity and duration of the COVID-19 pandemic and actions by governments, businesses and individuals in response to the pandemic, including the duration and severity of economic disruptions; the Company's failure to receive new contract awards; cost overruns, project delays or other problems arising from project execution activities, including the failure to meet cost and schedule estimates; intense competition in the industries in which we operate; failure of our partners to perform their obligations; cyber-security breaches; foreign economic and political uncertainties; client cancellations of, or scope adjustments to, existing contracts; failure to maintain safe worksites and international security risks; risks or uncertainties associated with events outside of our control, including weather conditions, pandemics, public health crises, political crises or other catastrophic events; the use of estimates and assumptions in preparing our financial statements; client delays or defaults in making payments; the failure of our suppliers, subcontractors and other third parties to adequately perform services under our contracts; uncertainties, restrictions and regulations impacting our government contracts; the inability to hire and retain qualified personnel; the potential impact of certain tax matters; possible information technology interruptions; the Company's ability to secure appropriate insurance; liabilities associated with the performance of nuclear services; foreign currency risks; the loss of one or a few clients that account for a significant portion of the Company's revenues; damage to our reputation; failure to adequately protect intellectual property rights; asset impairments; climate change and related environmental issues; increasing scrutiny with respect to sustainability practices; the availability of credit and restrictions imposed by credit facilities for our clients, suppliers, subcontractors or other partners; failure to obtain favorable results in existing or future litigation and regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure by us or our employees, agents or partners to comply with laws; new or changing legal requirements, including those relating to environmental, health and safety matters; failure to successfully implement our strategic and operational initiatives; risks related to provisions of our convertible preferred stock; and restrictions on possible transactions imposed by our charter documents and
Additional information concerning these and other factors can be found in the Company's public periodic filings with the Securities and Exchange Commission, including the general economic conditions and other risks, uncertainties and factors set forth in the section entitled “Cautionary Note Regarding Forward-Looking Statements and Summary of Risk Factors” in the Company’s annual report on Form 10-K for the period ended December 31, 2023, the Form S-1 filed on March 20, 2023, and declared effective on March 23, 2023, the Registration Statement on Form S-3 filed on June 1, 2023 and declared effective on June 5, 2023, and under similar headings in subsequent filings with the
UNAUDITED |
|||||||
NuScale Power Corporation |
|||||||
Consolidated Balance Sheet |
|||||||
(in thousands, except share and per share amounts) |
|
December 31, 2023 |
December 31, 2022 |
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
|
$ |
120,265 |
$ |
217,685 |
||
Short-term investments |
|
|
— |
|
50,000 |
||
Restricted cash |
|
|
5,100 |
|
— |
||
Prepaid expenses |
|
|
19,054 |
|
5,531 |
||
Accounts and other receivables |
|
|
10,127 |
|
11,199 |
||
Total current assets |
|
|
154,546 |
|
284,415 |
||
Property, plant and equipment, net |
|
|
4,116 |
|
4,770 |
||
In-process research and development |
|
|
16,900 |
|
16,900 |
||
Intangible assets, net |
|
|
882 |
|
1,059 |
||
Goodwill |
|
|
8,255 |
|
8,255 |
||
Long-lead material work in process |
|
|
36,361 |
|
— |
||
Restricted cash |
|
|
— |
|
26,532 |
||
Other assets |
|
|
3,798 |
|
6,704 |
||
Total assets |
|
$ |
224,858 |
$ |
348,635 |
||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and accrued expenses |
|
$ |
44,925 |
$ |
27,951 |
||
Accrued compensation |
|
|
8,546 |
|
9,038 |
||
Long-lead material liability |
|
|
32,323 |
|
— |
||
Other accrued liabilities |
|
|
1,664 |
|
1,568 |
||
Total current liabilities |
|
|
87,458 |
|
38,557 |
||
Warrant liabilities |
|
|
5,722 |
|
29,349 |
||
Deferred revenue |
|
|
898 |
|
856 |
||
Noncurrent liabilities |
|
|
1,442 |
|
2,786 |
||
Total liabilities |
|
|
95,520 |
|
71,548 |
||
| Stockholders' Equity | |||||||
Class A common stock, par value |
|
8 |
|
|
|
7 |
|
Class B common stock, par value |
|
15 |
|
|
|
16 |
|
Additional paid-in capital |
|
333,888 |
|
|
|
296,748 |
|
Accumulated deficit |
|
(240,454 |
) |
|
|
(182,092 |
) |
Total Stockholders' Equity Excluding Noncontrolling Interests |
|
93,457 |
|
|
|
114,679 |
|
Noncontrolling interests |
|
35,881 |
|
|
|
162,408 |
|
Total Stockholders' Equity |
$ |
129,338 |
|
|
$ |
277,087 |
|
Total Liabilities and Stockholders' Equity |
$ |
224,858 |
|
|
$ |
348,635 |
|
UNAUDITED |
|||||||||
NuScale Power Corporation |
|||||||||
Consolidated Statements of Operations |
|||||||||
|
|||||||||
Year Ended December 31, |
|||||||||
(in thousands, except share and per share amounts) |
|
2023 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
22,810 |
|
$ |
11,804 |
|
$ |
2,862 |
|
Cost of sales |
|
(18,961 |
) |
|
(7,317 |
) |
|
(1,770 |
) |
Gross margin |
|
3,849 |
|
|
4,487 |
|
|
1,092 |
|
Research and development expenses |
|
156,050 |
|
|
127,662 |
|
|
94,388 |
|
General and administrative expenses |
|
65,404 |
|
|
55,307 |
|
|
38,725 |
|
Other expenses |
|
57,960 |
|
|
51,513 |
|
|
42,279 |
|
Loss from operations |
|
(275,565 |
) |
|
(229,995 |
) |
|
(174,300 |
) |
Sponsored cost share |
|
61,031 |
|
|
72,514 |
|
|
73,522 |
|
Change in fair value of warrant liabilities |
|
23,627 |
|
|
12,148 |
|
|
— |
|
Interest income (expense) |
|
10,792 |
|
|
3,760 |
|
|
(1,715 |
) |
Loss before income taxes |
|
(180,115 |
) |
|
(141,573 |
) |
|
(102,493 |
) |
Provision (benefit) for income taxes |
|
— |
|
|
— |
|
|
— |
|
Net loss |
|
(180,115 |
) |
|
(141,573 |
) |
|
(102,493 |
) |
Net loss attributable to legacy NuScale LLC holders prior to Transaction |
|
— |
|
|
(31,155 |
) |
|
— |
|
Net loss attributable to noncontrolling interests |
|
(121,753 |
) |
|
(84,504 |
) |
|
— |
|
Net Loss Attributable to Class A Common Stockholders |
|
(58,362 |
) |
|
(25,914 |
) |
|
(102,493 |
) |
|
|
|
|
||||||
Loss Per Share of Class A Common Stock: |
|
|
|
||||||
Basic and Diluted |
$ |
(0.80 |
) |
$ |
(0.51 |
) |
$ |
— |
|
|
|
|
|
||||||
Weighted-Average Shares of Class A Common Stock Outstanding: |
|
|
|
||||||
Basic and Diluted |
|
73,386,018 |
|
|
50,763,844 |
|
|
— |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240314556079/en/
Investor Contact
Scott Kozak, Director, Investor Relations, NuScale Power
skozak@nuscalepower.com
Media Contact
Chuck Goodnight, Vice President, Business Development, NuScale Power
media@nuscalepower.com
Source: NuScale Power
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