NUSCALE POWER Corp Q3 FY2024 earnings call

• Energy demand in the US has inflected, with data centers driving urgent need for carbon-free energy. NuScale's SMR technology is positioned to meet this demand.
• Tech companies are increasingly turning to nuclear energy, with announcements from Amazon, BlackRock, Microsoft, Google, Oracle, etc.
• International opportunities: RoPower project Phase 2 FEED work ongoing, Regnum Technology's MOU with Ghana for NuScale SMR, and sixth E2 center in Ghana.
• Manufacturing: Doosan Enerbility making progress on first NuScale power modules, robust supply chain positioning NuScale as leader in manufacturing readiness.
• Financial update: Cash position improved, balance sheet strengthened, and focus on liquidity and risk management.

NuScale reported revenue of $0.5 million for the third quarter of 2024 with a net loss of $45.5 million. Cash, cash equivalents, and short-term investments were $161.7 million, with $5.1 million restricted. Operating expense was $41.2 million compared to $93.9 million in the prior year quarter, showing a reduction of $52.7 million due to cost optimization efforts.

• Expect near-term sales goals to be achieved as negotiations progress.
• Second standard design approval application for 77-megawatt electric upgrade scheduled to conclude by mid-2025, which supports wider range of customers.
• Confidence in commercializing technology given advanced stage of NuScale's SMR compared to peers.

• FERC decisions and regulatory uncertainties related to grid connection and energy deployment.
• Market competition with other clean energy technologies and potential delays in project timelines due to complex negotiation processes.

Q: Thoughts on FERC rejection of Talen in Amazon Data Center and impact on interest from pipeline and new customers?

A: John Hopkins believes it's too early to comment fully, but doesn't see it as a long-term hold-up. Ramsey Hamady notes no feedback from customers delaying discussions due to upgrade progress.

Q: Details on $20 million customer deposit related to RoPower?

A: Ramsey Hamady states it's related to progress in pre-engineering services and technology licensing towards SMR module deployment.

Q: Module fuel flexibility and impact on passive safety mechanism and smaller EPZ?

A: Clayton Scott explains NuScale can use higher blend fuel but current design is comfortable with 21-24 month cycle, and increasing enrichment doesn't significantly impact passive safety or EPZ within certified boundaries.

Q: DOE $800 million light water reactor program and how NuScale is involved?

A: Clayton Scott says it's a competitive cost share program where a team needs to be put together to submit an application for DOE review.

Q: Uprate approval and NRC-related costs/timelines for 12 module design?

A: Clayton Scott explains elements of uprate apply to 12 module design, and site-specific license will be based on site parameters when pursuing 12 module sites.

Q: Impact of change in administration on nuclear support?

A: John Hopkins is hopeful for acceleration in advanced nuclear under potential new administration, citing previous pro-nuclear stance from President Trump and importance of American technologies in international competition.