How are energy investors positioned?
NuScale Power Corp reported a substantial increase in revenue for Q4 2024, reaching $34.2 million, significantly above the forecasted $5.63 million. Despite this revenue surge, the company’s stock fell 10.12% during regular trading hours, closing at $15.6 in aftermarket trading. According to InvestingPro data, the stock has shown significant volatility, with a beta of 1.52. The company also reported a net loss of $180.3 million for the quarter, influenced by a $170 million non-cash expense.
Key Takeaways
- NuScale’s Q4 2024 revenue of $34.2 million surpassed expectations.
- The stock declined by 10.12% during regular trading, despite revenue growth.
- Net loss for the quarter was $180.3 million, including significant non-cash expenses.
- The company is advancing its SMR technology and expanding its production capabilities.
- NuScale maintains a strong cash position, bolstered by warrant conversions.
Company Performance
NuScale Power demonstrated robust financial performance in Q4 2024, with revenue increasing to $34.2 million from $4.6 million in Q4 2023. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.24 and holds more cash than debt on its balance sheet. This growth reflects the company’s successful efforts in scaling its operations and expanding its production capabilities. The company is leveraging its NRC-approved SMR technology to meet the growing demand for clean energy solutions, particularly from data centers and industrial sectors.
Financial Highlights
- Revenue: $34.2 million, up from $4.6 million in Q4 2023
- Full Year 2024 Revenue: $37 million
- Net Loss for Q4: $180.3 million (includes $170 million non-cash expense)
- Cash Position: $446.7 million, up from $125.4 million at the end of 2023
Earnings vs. Forecast
NuScale Power exceeded revenue expectations by a significant margin, reporting $34.2 million against a forecast of $5.63 million. This represents a surprise percentage of approximately 507%. However, the net loss of $180.3 million, partly due to a large non-cash expense, weighed on investor sentiment.
Market Reaction
Despite the positive revenue figures, NuScale’s stock fell by 10.12% during regular trading hours, with a slight recovery in aftermarket trading, where it rose by 0.97% to $15.6. This decline may reflect investor concerns over the company’s net loss and significant non-cash expenses. While the stock has delivered an impressive 347.83% return over the past year according to InvestingPro, recent performance shows increased volatility. The stock’s current price of $15.45 contrasts with its 52-week high of $32.3, indicating a cautious market outlook. Analyst price targets range from $4.50 to $29.00, reflecting diverse views on the company’s prospects.
Outlook & Guidance
Looking ahead, NuScale Power is focusing on expanding its presence in the data center and industrial electrification markets. The company is pursuing power purchase agreements and expects to receive NRC approval for a power upgrade by mid-2025. Future revenue projections show significant growth potential, with an expected increase to $52 million by FY2025. Investors seeking deeper insights into NuScale’s growth trajectory can access comprehensive valuation models and 14+ additional ProTips through InvestingPro’s exclusive research reports.
Executive Commentary
CEO John Hopkins emphasized NuScale’s leadership in the SMR market, stating, "We are the leader poised to deliver safe, scalable, reliable carbon-free power." He highlighted the company’s strategic partnerships and ongoing discussions with data center companies as key growth drivers.
Risks and Challenges
- The large non-cash expense impacting net income may raise concerns about future profitability.
- Regulatory hurdles and approval timelines could affect project deployment.
- Market competition and technological advancements in the energy sector pose challenges.
- Supply chain disruptions could impact production schedules and costs.
Q&A
During the earnings call, analysts inquired about NuScale’s strategic partnerships and potential DOE grant opportunities. The company expressed confidence in its production capabilities and customer pipeline, emphasizing its focus on supply chain management and strategic alliances.
Full transcript - Nuscale Power Corp (NYSE:SMR) Q4 2024:
Conference Operator: Good afternoon, everyone, and welcome to NuScale’s Fourth Quarter and Full Year twenty twenty four Earnings Results Conference Call. Today’s call is being recorded. All participants are in a listen only mode. After management’s prepared remarks, there will be a question and answer session. A replay of today’s conference call will be available and accessible on Newscal’s website at ir.newscalepower.com.
The web replay will be available for thirty days following the earnings call. At this time, for opening remarks, I would like to turn the call over to Scott Kozak, Director of Investor Relations. Please go ahead, Mr. Kozak.
Scott Kozak, Director of Investor Relations, NuScale: Thank you, operator. Welcome to NuScale’s fourth quarter and full year twenty twenty four earnings results conference call. With us today are John Hopkins, President and Chief Executive Officer and Ramsey Hamady, Chief Financial Officer. On today’s call, NuScale will provide an update on our business and discuss financial results. We will then open the phone lines for questions.
This afternoon, we posted a set of supplemental slides on our Investor Relations website. As reflected in the Safe Harbor statements on slide two, the information set forth from the presentation and discussed during the course of our remarks and the subsequent Q and A session includes forward looking statements, which reflect our current views of existing trends and are subject to a variety of risks and uncertainties. You can find a discussion of our risk factors, which could potentially contribute to such differences in our Form 10 ks and subsequent SEC filings. I’ll now turn the call over to John Hopkins, NuScale’s President and Chief Executive Officer. John.
John Hopkins, President and Chief Executive Officer, NuScale: Thank you, Scott, and good afternoon, everyone. Reflected on 2024, our journey has been dynamic and rewarding, and I’m delighted by our achievements. We have significantly bolstered our financial standing, advanced the commercialization of our pioneering small modular reactor technology and laid the groundwork for sustainable long term value creation. Certainly, Ramsey will provide insights into our financials. I’d like to start with key business updates.
As illustrated on slide three, we are witnessing good progress with Rural Power. As you may recall, Rural Power plans to develop a six module SMR power plant with a four sixty two megawatt of installed capacity on the site of a decommissioned coal fired power plant in Dorchester. NuScale is committed to supporting Romania’s energy security and decarbonization initiatives. We are diligently progressing our responsibilities for Row Power Phase II front end engineering design. This floor led feed Phase II provides meaningful revenue and cash flow for NuScale.
Moving on to slide four, it’s essential to emphasize that NuScale stands as the sole near term deployable SMR currently available. In contrast, other recently announced SMR projects in The U. S. Are focused on demonstration plants. Following construction, these demonstration plants will have to operate for a minimum of four years prior to the US nuclear regulatory commission NRC providing regulatory approval, which is required for commercial operation.
NuScale has committed over $2,000,000,000 to develop and license our unique SMR technology, which has received design certification from the Nuclear Regulatory Commission. No other advanced reactor SMR design has submitted a standard design approval application or SDA to the NRC at this point. And these efforts remain years away from approval compared to our established timeline. Intra one energy plants powered by NuScale technology are primed for immediate commercial development. We’re also making headway on a technology review of our operated SDA application with the NRC.
Aiming to increase power output per module from our previously NRC licensed 50 megawatt electric to 77 megawatt electric. This review is set to conclude by mid twenty twenty five. Our design upgrade is founded on the same rigorous safety principles and technical features already authenticated by the NRC in 2020. We believe that the 77 megawatt electric new scale power module will cater to a broader spectrum of customers while enhancing economic efficiency. Now let’s turn our attention to manufacturing.
NuScale is clearly leading the industry in this critical element of commercialization. Our supply chain partner, strategic investor Doosan Interability has continued to make progress advancing the first six NuScale power modules. The only NRC approved SMRs in production. More recently, this past quarter, in coordination with Doosan and our development partner, IntraOne Energy, advanced discussions with prospective customers seeking 12 module configurations led us to long lead material items for an additional six modules. NuScale has 12 modules in production, a testament to the confidence we have in our customer pipeline and our commitment to February and ’30 delivery.
We are advancing certain activities in manufacturing licensing to get ahead of potential bottlenecks and commercial deployable schedules. For example, global manufacturer Lima recently received an order to supply steam generator tubes for new scale small modular reactors. On slide five, there are images associated with our manufacturing progress. This includes the production of large forgings and the maturing of our control rod drive mechanism design. Key lessons from our manufacturing readiness work are incorporated into design to save time during production work and support deployment, shortening delivery schedules significantly.
Coupled with our InterOne development partnership, NuScale’s SMR technology is poised to move the exploding demand for clean energy across multiple sectors. As illustrated on slide six, near term energy demand in The US is expected to grow at levels we haven’t seen in decades. A recent IHS energy forecast anticipates a six times increase in growth electricity demand in the next twenty years versus the growth of the prior twenty years. This significantly accelerate rate of electricity consumption in the coming decades will fundamentally change the landscape of power production. The projected growth spans various sectors and is driven by the reshoring of manufacturing and electrification of many industries, including oil and gas and chemicals.
However, the primary driver is a 20 fourseven load required by artificial intelligence data centers. According to a December 2024 US Department of Energy report, data centers may triple their energy use in the next three years alone. Under that forecast, data centers could account for as much as 12% of the nation’s electricity consumption by 2028. The world’s largest technology companies are driving this need. Microsoft (NASDAQ:MSFT) said it would spend approximately $80,000,000,000 in its 2025 fiscal year to build data centers for its booming artificial intelligence business.
In addition, in December, Meta (NASDAQ:META) announced that it is seeking up to four gigawatts of new nuclear power to help meet the company’s AI and sustainability objectives. And it’s worth emphasizing that this is not about peaking demand. Data centers have both high capacity demand and high energy demand. So the challenge is multifaceted. Significant new energy sources are needed, both to produce enough power when usage is at its highest and to support sustained heavy levels of energy consumption over long duration.
Yet as seen in slide seven, the megawatts currently coming online in The US are mainly intermittent sources and short duration battery storage. Looking more closely at 2025, planned capacity additions for three major US grid operators include very limited dispatchable generation. Coupled with the reality of additional fossil fuel retirements, it is clear where nuclear and SMARS in particular can be a major game changer. We see massive opportunity to provide baseload clean energy. You cannot run a full time grid on part time power.
It is important to bear in mind that existing utilities are challenged to divert nuclear load from existing customers. In an era where more energy is necessary to fortify The U. S. Electricity grid, power economic growth and bolster America’s global competitiveness, the need for new nuclear is a reality. And entities throughout our economy are taken notice.
As we’ve discussed in the past few slides, the demand funicular has never been more pronounced. As viewed on slide eight, NuScale is seeing increased interest across the board from a variety of potential off takers for different use cases. On the data center side, our commercialization partner InterOne is leading discussions with America’s leading hyperscalers at the most senior levels. And conversations are focused on powering AI. These executives understand how attractive our site boundary, emergency planning zone is enabling us to locate close to the end user.
They also appreciate our off grid capabilities. Critically given a speed for which they need power, prospective customers recognize that NuScale is years ahead of other proposed SMR technologies. And they are attracted to InterOne Energy’s commercial model, which is structured to provide financial flexibility and mitigate deployment risk. Notably, conversations with hydro scalers are also driving increased engagement from the utilities that currently power them. Importantly, Enter One provides utilities and commercial consumers with a solution to get SMR generated energy offtake without the need to capitalize, own or operate a nuclear energy power plant.
Switching gears for a minute, even as we drive our commercial initiatives, NuScale has not stopped innovating. As an example, our chief technology officer and co founder Doctor. Jose Reyes recently published a white paper illustrating why NuScale is well positioned to benefit from the January 2025 Department of Treasury final regulations met to boost domestic production of clean hydrogen fuel through tax credits. As noted on slide nine, this credit is worth up to $3 per kilogram of hydrogen production for those that can qualify for example, by using NuScale. For over a decade, we have been exploring new hydrogen technologies with industrial partners in national labs that integrate a NuScale plant with high temperature and high pressure steam electrolyzers with the end goal of decarbonizing this important sector.
Before I turn the call over to Ramsey, I want to touch on a few factors that we view as positive for NuScale. First, while Advance NIQA has long enjoyed bipartisan support, we are pleased by the new administration’s enthusiasm and sense of urgency for new nuclear. Recently, confirmed Energy Secretary Chris Wright has a deep understanding of the nuclear sector, committing that he wants to make it easier to research, invest and build small modular reactors. In addition, a few weeks ago, President Trump established the National Energy Dominance Council led by Secretary of Interior Borglum and Energy Secretary Wright. Within a one hundred day timeframe, the council advised on how best to improve processes for permitting, production, generation, transportation and export of all forms of American energy.
This will also include actions that each agency can take to increase energy production. Importantly, the executive order specifically prioritizes bringing small modular reactors online. This effort is a strong step towards securing our energy future and ensuring The US sets of resources to meet demands that AI will place on our grid. Second, as we’ve discussed at length, our competitive strengths. Whether it’s industrial electrification, process heat, or the rapidly escalating demand for the data economy, the reliable clean energy produced by NuScale’s SMR technology plays a critical part in the energy solution of the future.
Moreover, we are not burdened by the additional hurdles faced by non light water reactor SMR technologies. So called generation four SMR technologies require high assay low enriched uranium fuel or HALU. Today, there is no supply chain for HALU. This fuel is not commercially available and production efforts are impeded by national security concerns. Given global diplomatic efforts to prevent proliferation in the absence of substantive recent investment, many experts believe HALU Technologies could be a decade if not more away from commercialization.
Lastly, I cannot end without emphasizing the incredible interest in demand for the technological and safety benefits of NuScale’s SMR. Potential customers understand and appreciate what sets NuScale apart, including our partnership with InterOne Energy. I’m proud of where we are and I’m looking forward to updating you on our progress over the course of 2025. Now over to Ramsey for the financial update.
Ramsey Hamady, Chief Financial Officer, NuScale: Thank you, John, and hello everyone. Our financial results are available in our filings. So my focus will be on explaining major line items. As seen on slide 10, I’ll start by discussing our financial results. All figures falling are for Q4 twenty twenty four, unless I state otherwise.
NuScale’s cash position grew substantially during the period, ending the fourth quarter with cash, cash equivalents and short term investments of $446,700,000 compared to $125,400,000 at the end of twenty twenty three. NuScale’s significantly improved liquidity position provides a strong foundation for continued development and our push towards commercialization of our industry leading NRC approved technology. In Q4 twenty twenty four, NuScale issued a mandatory redemption of warrants, triggering conversions among warrant holders, which generated proceeds of $205,300,000 in the quarter or total cash proceeds of $227,700,000 since issuance. In addition to buttressing our balance sheet, the elimination of warrants greatly reduces earnings volatility by eliminating the non cash impact of those derivative liabilities on our income statement. NuScale’s cash position at the year end 2024 provides the company with significant resources and time to achieve our goals.
We’ll utilize these resources to support commercialization activities, such as further development of our supply chain and bolstering manufacturing preparedness, including ordering laundry materials related to the production of our first twelve modules. We will also continue to nurture and mature our research development efforts to support the next generation of NuScale innovation. For the fourth quarter ended 12/31/2024, NuScale reported revenue of $34,200,000 and a net loss of $180,300,000 Revenue in the quarter was driven by payments for activities in support of RoPower’s development of their power plants. And the loss includes a noncash expense of $170,000,000 related to the increase in fair value points. During the same period the prior year, the company reported revenue of $4,600,000 and net loss of $56,400,000 which included non cash income of $6,500,000 related to our warrants.
For the full year 2024, NuScale’s revenue was $37,000,000 and net loss was $348,400,000 with $223,000,000 of that loss relating to accounting treatment once again within the fair value of the warrants. Q4 twenty twenty four operating expenses were $43,000,000 compared to $71,800,000 in the year earlier period. The year over year reduction in quarterly operating expenses of $28,800,000 reflects management efforts to reduce costs and operate more efficiently as we transition from an R and D focused organization to one focused on commercialization. Furthermore, on average, quarterly operating expenses decreased from $69,900,000 in 2023 to $42,700,000 in 2024, generating an annualized savings of more than $108,600,000 That decrease in burn rate is significant and has a meaningful impact on cash management. During the fourth quarter of twenty twenty four, we also reduced our operating loss to $11,900,000 compared to an operating loss of $71,100,000 in the fourth quarter of twenty twenty three.
Looking ahead, Eskill is well positioned to accelerate growth in 2025 with module production commercialization with entwined finish. We have put a strong foundation for growth based on world class technology, a powerful global supply chain and a strong competitive position. I will conclude my remarks with a brief overview of our capitalization table beyond 5.11.
John Hopkins, President and Chief Executive Officer, NuScale: With that, I’d like
Ramsey Hamady, Chief Financial Officer, NuScale: to thank you again for joining today and for continued support of NuScale. We’ll now take questions. Operator?
Conference Operator: Thank you. We’ll go first to George Gianaricas, Canaccord Genuity.
George Gianaricas, Analyst, Canaccord Genuity: Hi, everyone. Thank you for taking my questions. Maybe if you could just go into a little bit of detail around any potential bottlenecks you’re seeing in putting pen to paper and signing an agreement with a large data center company in The U. S? Thank you.
John Hopkins, President and Chief Executive Officer, NuScale: Yes, this is John. I don’t know necessarily I’d say bottlenecks as it is just the complexity of putting these projects together. As we stated, NuScale is the provider of power modules, InterOne will be the owner. We’re in discussions with operators. We’re in discussions with other contractors who are willing to build and we continue to build out our supply chain.
So it’s and we’re also in discussions obviously with those funding mechanisms who want to participate in this. So it’s not necessarily bottleneck as I said George, it is just the complexity of putting the deals together. But I will say, as I commented, we’ve just ordered an additional six modules. So we’re very confident that we’re getting closer to landing and or closing some of these deals.
Esteban Avaracino, Analyst, TD Cowen: Clearly. Thank you. And maybe just as one follow-up. Ramsey, can you
George Gianaricas, Analyst, Canaccord Genuity: give us a little bit more detail around the parameters or conditions met that allowed you to recognize the revenue in the fourth quarter? Thank you.
Unidentified Speaker, NuScale: Sure, George. I think, yes, there is two components of the contract. One was delivery of services and the other was our work advancing towards, delivery of service or delivery of an item. So we encountered revenue recognition in the form of two contracts. They based along both those lines.
One was in relation to licensing some technology, and one was in relation to doing some subcontract around the EPC work.
Conference Operator: Next (LON:NXT) up is Mark Bianchi, TD Cowen.
Esteban Avaracino, Analyst, TD Cowen: Hey, guys. This is Esteban Avaracino for Mark here. So you guys mentioned, yes, the Dusan forging of the 12 reactors. I imagine six of those are intended for the Romania plant. And these additional six, those aren’t yet booked by another unannounced customers, right?
I think if I’m kind of getting this correctly, you’re trying to really use that to front load more of the long lead, sort of items to try and compress the operation timeline of a plant for a potential customer. Is that right?
John Hopkins, President and Chief Executive Officer, NuScale: Yes. What we’re doing is, we feel that in discussions we’re having with prospective customers currently and you’re right, these long lead items, if you’re not in order or placed orders by now, it’s years away because they take that long for them to manufacture. So we’re feeling very confident that in place these additional six and by the way, for those first six, it’s really a first mover. We’re progressing very well with Row Power as we’ve commented before. We’re in the front end engineering and design, things progressing well.
They go for their final investment decision fourth quarter of twenty twenty five. And as I stated before, but we’re also in discussion with other customers that are looking also to be near term deployable.
George Gianaricas, Analyst, Canaccord Genuity: Esteban, if I can clarify
Unidentified Speaker, NuScale: one item that you mentioned. So NuScale is not manufacturing reactors. We are manufacturing long lead materials in relation to 12 NuScale power modules. Just to make the distinction that these are the long lead materials which we’re manufacturing. And you’re right, they are for 12 modules today.
And to clarify, they’re not for a particular customer. They’re for the first customer that says we want to buy these modules. We believe it in our best interest and our customers’ best interest to engage on the forgings for an additional six in addition to the six that we already had in production and, and just push forward with these 12 long lead materials or long lead materials in relation to 12 modules.
Esteban Avaracino, Analyst, TD Cowen: Got it. Got it. Thank you for that. Yes. Then my other one is, so the revenue from the ROW Power FEED study, is that expected to stay around this level until the study is complete later in the year?
Or should we expect a deferring cadence throughout the year?
Unidentified Speaker, NuScale: I think there’s some front loading to the revenue, Esteban, but we’ll continue to see revenue in relation to some of the subcontract work on EPC throughout this year. I’m fairly careful, Esteban, and not providing guidance on future revenues. We tend not to do that yet.
Esteban Avaracino, Analyst, TD Cowen: Perfect. And if I can just squeeze one more. So on The U. S, the $800,000,000 grant that’s out there for Gen three reactors, is there any update you guys can give us there? You guys had a competitor that announced a few weeks ago a task force to try and push for the award.
Is NuScale working for something similar to get that grant or any other developments that you guys can touch upon?
John Hopkins, President and Chief Executive Officer, NuScale: Yes, this is John. We’re trying to get trying to ascertain in fact, I’ve got meetings this week with the Department of Energy to get more clarity around that particular award. So as it looks right now, we’re not real sure if we want to participate at this point or not. I’ll ask Clayton. Clayton has been close to this.
He’s our Commercial Officer. Clayton, do you have anything to add on that particular award?
Clayton, Commercial Officer, NuScale: No. We’re, as you said, we’re evaluating it. I think we’re cautious. We’re not quite sure where that’s going to land and how it’s going to be distributed, but we’re looking at it and we’re in discussions with EnfraOne and some of our offtake partners to determine whether we want to pursue that specifically.
Esteban Avaracino, Analyst, TD Cowen: Perfect. Thank you guys so much.
John Hopkins, President and Chief Executive Officer, NuScale: You bet.
Conference Operator: The next question is Ryan Fink with B. Riley.
Ryan Fink, Analyst, B. Riley: Hey guys, thanks for taking my questions. As a follow-up to one of the first questions, just for your conversations with data center or other customers, could you just walk us through some of the items that you and Enter One need to work through with prospective customers before being in a position to announce a project?
John Hopkins, President and Chief Executive Officer, NuScale: Yes. It’s predominantly around the negotiation and finalization of long term power purchase agreements. The InterOne model and the reason these customers appreciate this model is because as they stated during the call that InterOne, they will look to build own transfer or build own operate. We probably will not operate or sell. We’ll utilize a company like AEP or someone else.
But the power purchase agreements are what we’re in discussions about right now.
Ryan Fink, Analyst, B. Riley: Got it. Thanks, John. And then can you just remind us what the next steps are for the Rogue Power project and what milestones we should be looking for in 2025?
John Hopkins, President and Chief Executive Officer, NuScale: Yes. It’s, as I said, we are a subcontractor to Fluor Corporation (NYSE:FLR). I’m in discussions. In fact, I’m meeting with the CEO of Nuketo Electrica in two weeks at SIRA at the Energy Conference in Houston. So right now, we take the lead from Florida and we continue to support them in this project in the Romanian government moving this thing forward.
So, for what we know right now, all indications are that, as what we see, it’s progressing well. We’ll wait after this fourth quarter twenty twenty five, the government will determine or nuclear electrical will determine if they’re going to go forward with the final phase, which is the major production of the plant itself.
Clayton, Commercial Officer, NuScale: Understood. Thanks for that.
Conference Operator: And next up is Eric Stine, Craig Hallum.
Eric Stine, Analyst, Craig Hallum: Hi, John. Hi, Ramsey.
John Hopkins, President and Chief Executive Officer, NuScale: Good, Eric. Hey.
Eric Stine, Analyst, Craig Hallum: Hey. So maybe just on the upgrade, I mean, obviously, it sounds like quite confident and you’ve stuck with that mid-twenty twenty five date for some time. Just wondering, can you detail kind of the steps that are left or is it just getting through the process? And then I’m just wondering, you mentioned the pipeline and clearly a strong testament and your confidence there with the six more modules along lead time materials. I mean, are customers waiting for this?
Is this something that with that in hand that potentially speeds up the process of securing that first customer? How should we think about that?
John Hopkins, President and Chief Executive Officer, NuScale: Yes. Actually, the power up rate to 77 is progressing well. We’re pretty much have completed all the technical requirements for the NRC. Now it’s a matter of just going through the process administratively. I am myself and a few others were meeting with the NRC this week including mostly with the commissioners, but also with David Wright, who is also the Chairman of the NRC.
And we’re this close. I mean, I’m hopeful that we’re ahead of schedule, we’re on schedule. And once we get finalization of that 77 megawatt, we’re off to the races. And like right now, we’re near term deployable. We could be building currently.
That’s why we’ve ordered these long lead items in anticipation of what’s going to come. On the pipeline, Clayton, do you have anything to add?
Clayton, Commercial Officer, NuScale: No, I think the key issue is that having these LLMs in order certainly helps us expedite the first project in getting into the pipe. So, we’re trying to focus on early deployment and expedition of the project. So, this will certainly help us in that first twelve module plant.
Eric Stine, Analyst, Craig Hallum: Got it. Very helpful. And then maybe last one. Just you mentioned obviously this huge demand for nuclear power, but there’s also balancing that with taking that power from existing off takers. So are you seeing any change to the view of traditional nuclear and restart plants that are out there?
I mean, we all know the handful of names that are out there, but whether it’s additional plants that maybe have been moss balled for longer or expansions? I mean, is there anything out there that would indicate that that has the potential to help this? Or do you really view that this is SMRs and SMRs alone that can really add to this?
John Hopkins, President and Chief Executive Officer, NuScale: Yes, I don’t know how many plants that could actually restart. We’ve heard of the ones 3 Mile Island etcetera. I really do believe it’s the small modular reactor play going forward. It’s because I just don’t know of many that could actually do a typical large giga one size restart.
Ramsey Hamady, Chief Financial Officer, NuScale: All right. Thank you.
John Hopkins, President and Chief Executive Officer, NuScale: Clayton, do you have another view of that? I mean, you’re close to it.
Clayton, Commercial Officer, NuScale: No, I think you’re correct. I mean, there really is not many there’s not that many more plants that can come out of the restart program. And clearly, they’re looking at extensions of some of the units, but that’s still taking time. But yes, I mean, we’re at a point now where additional plants are going to have to be put on the grid. And based on when we look at the technologies, clearly, the SMRs, I think, are going to be a strong component of that mix and we’re ready to do that and support it and I look forward to being first out of the gate to get there.
John Hopkins, President and Chief Executive Officer, NuScale: And we comment about Doosan frequently. In fact, we just had meetings with them this week, but we’re also in discussions with other suppliers, strategic suppliers that we’ve noted earlier, IHI out of Japan, Doosan, GS Energy and we continue to build out that. We announced with Almeda that we’re in other areas other than just forging. So these things are complex and that supply chain and those strategic partners are critical for our success and we continue to build upon that.
George Gianaricas, Analyst, Canaccord Genuity: Okay. Thank you.
Conference Operator: And that does conclude our question and answer session. I would like to hand the call back to NuScale’s CEO, John Hopkins for any additional or closing remarks.
John Hopkins, President and Chief Executive Officer, NuScale: Yes. Thank you, operator. We truly are a first mover in this space. We’re poised to commercialize and deliver clean energy of scale. We believe new scale technology is essential in meeting world’s energy needs.
And again, as I stated before, we are the leader poised to deliver safe, scalable, reliable carbon free power. And we want to thank you for your interest in NuScale and looking forward to future calls. Thank you. Operator?
Conference Operator: Thank you, sir. Once again, that does conclude today’s conference. Thank you all for your participation. You may now disconnect.
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