Sweden-based nuclear technology company Studvik’s third-quarter sales dipped by 12.7 percent from the same period of 2015, from 189.8 million Swedish krona (SEK) ($21.3 million) to 164.6 SEK ($18.5 million), according to the company’s earnings report Friday.
Studsvik President and CEO Michael Mononen said during Friday’s earnings call that “there is no secret that I am very disappointed in the results of the quarter.”
“Those of you who have followed us for a long time – this is unfortunately the nature of our business, big swings from quarter to quarter,” he said. “We do not necessarily like it. We are working on trying to even out our order in the best way. For the time being that is the situation it is.”
A company of 800 employees across seven countries, Studsvik provides waste treatment, consultancy, and fuel and materials technology services in the nuclear industry. The company’s sales for the entire year to date, from January to September, remained largely flat: 512.5 million Swedish krona (SEK) ($57.4 million), slightly down from the 524.3 million Swedish krona (SEK) ($58.8 million) recorded for the same period in 2015.
According to the report, the company’s profit per share after taxes for the quarter was recorded at .08 SEK, down from 2.34 SEK in third-quarter 2015. Operating profit for the quarter amounted to a 11.9 million SEK loss ($1.3 million), compared to a 26.1 million SEK gain ($2.9 million) for 2015.
Operating profit declined from 26.1 million SEK ($2.9 million) in 2015 to a 11.9 million SEK ($1.3 million) loss in third-quarter 2016. Free cash flow now stands at 151.8 million SEK ($17 million), up from -38.3 million SEK (-$4.3 million) in third-quarter 2015.
In the third quarter, Studsvik completed the divestment of its waste treatment business in Sweden and the U.K. to French state-owned power company EDF SA for 355 million SEK ($44 million). EDF operates 58 reactors in France and 15 in the U.K.
The transaction generated a positive cash flow of 226 million SEK ($25.3 million) and a net result of 107 million SEK ($12 million), according to the company.
“The result was adversely affected by 25 million SEK ($2.8 million) because the Swedish authorities’ permit did not accept the inclusion of some historical waste in the transaction,” the report reads. “This cost was charged to operations held for sale. SEK 20 million of the purchase price is in a blocked account for the final settlement, which is expected to be before the end of the year.”
