Virgin Galactic Holdings Inc (NYSE:SPCE) shares are expected to drop after it unveiled a larger loss, with its fourth-quarter results showing how much is resting on a huge few months for the space tourism company.
With the company founded by Sir Richard Branson aiming to begin first commercial flights in the coming quarter, losses increased 42% to US$500mln last year, topped up with a net loss of US$151mln in the fourth quarter that compared to US$81mln a year earlier.
As it builds towards taking its first private astronauts into zero gravity on the edge of space, the California-based group burnt through US$131mln of cash in the final quarter but said its coffers remained well topped up, with US$980mln of liquid assets at the end of December.
For the first quarter of 2023, it acknowledged that there was "substantial uncertainty", but that it estimated that cash burn would rise to between US$135mln and US$145mln in terms of negative free cashflow.
Following two recent test flights, boss Michael Colglazier said it was “great to see our mothership back in the skies" and that a technical enhancement program complete and validation flights currently underway put it "on track" to launch commercial service in the second quarter.
Shares were pointing to a 1.7% decline in pre-market trading on Wednesday, with the results having been published after yesterday's closing bell.