Sweden-based nuclear technology company Studsvik’s sales remained largely flat year over year in the second quarter of 2016, according to its earnings report Friday.
Sales decreased slightly from 177.7 million Swedish krona (SEK) ($20.6 million) in second-quarter 2015 to 176.3 million SEK ($20.4 million) in the same timespan this year, the report shows. The company’s profit per share after tax was recorded at .2 SEK, up from -.60 SEK in the second quarter of 2015.
Operating profit declined from a .8 million SEK ($92,671) gain in second-quarter 2015 to a 1.2 million SEK ($139,028) loss in 2016. Free cash flow stood at -29.2 million SEK (-$3.4 million), up from -38.9 million SEK (-$4.5 million) in second-quarter 2015.
A company of 800 employees across seven countries, Studsvik provides waste treatment, consultancy, and fuel and materials technology services in the nuclear industry.
Echoing statements from the company’s first-quarter earnings report, Studsvik President and CEO Michael Mononen in Friday’s earning call said waste treatment opportunities in Europe and North America present a” very challenging market situation short-term.” Operating profit for this segment showed an 18 million SEK ($2.1 million) loss for the second quarter, compared to a 10 million SEK ($1.2 million) gain in the same span in 2015.
“We are working hard to identify business opportunities, and we are making progress, but processes are slow and take time, but it’s moving in the right direction,” Mononen said.
Studsvik in April announced that it was selling its waste treatement units in Sweden and the U.K. to French state-owned power company EDF for 355 million SEK ($44 million). The sale is expected to close in the third quarter, Mononen reaffirmed Friday.
According to Studsvik, the transaction will generate a positive cash flow of about 225 million SEK ($28 million), and produce a net result of about 115 million SEK ($14.2 million), which is expected in the third quarter.
