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Eve Holding reports USD31 million loss in Q3 but USD342.5 million liquidity

Eve Holding has reported a net loss of USD31.2 million in 3Q23 versus USD36.7 million in 3Q22.

According to a company statement “Eve is not yet producing revenue; we do not expect meaningful revenues during the development phase of our aircraft, and financial results should be mostly related to costs associated with the program development.

“Setting aside non-recurring warrant-related expenses connected to Eve’s PIPE investments and the merger with Zanite (SPAC transaction) of USD 17.4 million incurred in 3Q22, net loss was then USD19.3 million. The higher recurring net losses in 3Q23 compared to the same period of 2022 were mostly driven by higher Research & Development (R&D) expenses, which are costs and activities necessary to advance the eVTOL design, including the Master Service Agreement (MSA) with Embraer, as well as higher recurring Selling, General & Administrative (SG&A) expenses. Higher R&D and recurring SG&A expenses during the quarter were partly offset by financial investment income and FX gains of USD4.4 million in the 3Q23 versus a gain of USD2.0 million in the 3Q22, due to the current environment of higher interest rates translating into increased interest income on Eve’s cash position in 2023 compared to 2022.

“Including personnel contracted through the MSA with Embraer and its subsidiaries, Eve employs approximately 760 full-time equivalent professionals in the development of its eVTOL and other elements of the UAM ecosystem such as Service and Operations Solutions and Urban Air Traffic Management, versus approximately 460 in 3Q22.

“Eve’s total cash consumption in 3Q23 was USD22.4 million, versus USD17.3 million in 3Q22. In the nine months until September 2023, cash consumption was USD70.2 million, vs. USD39.1 million in 9M22.  R&D associated with Eve’s aircraft development and SG&A expenses mentioned above were the main contributors to the higher cash consumption during the quarter.

“At the end of 3Q23, Eve’s cash, cash equivalents, financial investments, and related-party loan with Embraer, totalled USD256.4 million. This is down just USD12.7 million in the quarter, reflecting the withdrawal of the first tranche of the two credit lines from Brazil’s National Development Bank (BNDES) that had been approved in December 2022.

“Eve received R$57.0 million (USD11.7 million, using the Sept. 30, 2023, exchange rate) of the total available funds of R$490.0 million (USD97.9 million) from BNDES.  Both lines offer attractive terms and conditions that are aligned with Eve’s early-stage development, with long-term maturity and amortization grace period and will support Eve as it continues to advance its eVTOL program.

“With that, Eve’s 3Q23 total liquidity – including still-undrawn portions of the BNDES credit lines is now at USD342.5 million.  We expect to continue drawing from these facilities through the end of 2024, which will help Eve better manage cash position and optimize our capital structure as well as capital deployment towards the development of our eVTOL program.”

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(Image: Eve Air Mobility)

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