Eve Air Mobility has announced its trading figures for the third quarter of 2023. The headline figures show a loss of US$31 million for the quarter compared with $36.7m in 2022. On the face of it, it is an improvement, but the company said this masks the company’s true position year on year since the figures for Q3 2022 were distorted by expenses associated with investments and the merger with Zanite. When the investment costs are taken out of the equation, the loss for the quarter compared with 2022 is up by $11.9m.
The increased spending is a result of the higher R&D costs as the development of the company’s eVTOL continues, as well as with increases to charges under the Master Service Agreement (MSA) with Embraer, and higher recurring Selling, General & Administrative (SG&A) expenses. These costs were offset in part by foreign exchange gains of $4.4m as well as higher interest rates resulting in interest earned on the company’s cash reserves.
Eve’s total cash consumption in 3Q23 was $22.4 million versus $17.3 million in 3Q22. In the nine months until September 2023, cash consumption was $70.2 million, vs. $39.1 million in 9M22.
At the end of 3Q23, Eve’s cash, cash equivalents, financial investments, and related-party loan with Embraer totalled $256.4 million. This is down just $12.7 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 BRL57.0 million (US$11.7 million, using the 30 September 2023 exchange rate) of the total available funds of BRL490.0 million ($97.9 million) from BNDES. Both lines offer attractive terms and conditions that are aligned with Eve’s early-stage development, with long-term maturity and amortisation grace period and will support Eve as it continues to advance its eVTOL programme.
With that, Eve’s 3Q23 total liquidity – including still-undrawn portions of the BNDES credit lines is now at $342.5 million.
