Studsvik ended 2021 with a solid report but looking at the segments it was clear that Decommissioning was affected by the transition from ongoing nuclear operations to a pure decommissioning mode in Germany. That was offset by strong results in the F&MT segment. It will be of interest how Studsvik performs during the Decommissioning transition phase and whether it will be a temporary setback in profitability or a prolonged one. The company aims to ramp up its sales from Switzerland and Belgium to have a smoother transition in the Decommissioning segment. Studsvik also has exposure to Russia, mainly in the F&MT segment and our indication is that it has halted its deliveries to that client and prioritized other orders. We think it will be a problematic situation if the war in Ukraine continues and we do not expect Studsvik to deliver to any Russian clients during 2022.
Halts Russian deliveries in the F&MT segment
We forecast that the group’s exposure to Russia is 4-5% of sales with the majority coming from the F&MT segment where Studsvik won a larger order to a Russian client during 2021 that was supposed to be delivered during 2021 and 2022. In this update we have excluded the expected sales for that order in ‘22e and currently do not expect Studsvik to be able to recover the sales in ‘23e. This results in a negative sales revision of -4% and EBIT of -6%.
EU needs to be energy self-sufficient, nuclear is part of that
Although Studsvik probably will be negatively affected by the war in Ukraine in the short-term, it has also put the nuclear industry in a different light following the surging energy prices we have witnessed in Europe. It is clear that the EU needs to be less reliant on Russian energy and the EU has outlined a plan to make Europe independent from Russian fossil fuels well ...
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