Virgin Galactic loses $500m
March 3, 2023
By Chris Forrester
Sir Richard Branson’s Virgin Galactic business has reported a significant trading loss for 2022. The company said it remained “on track” to start carrying paying passengers in its space tourism business despite racking up $500 million in losses last year.
The losses, specifically at Virgin Galactic Holdings, amount to $500 million compared to a loss for 2021 of $353 million for the year to December 31st 2022.
Its Net loss of $151 million for its Q4 2022, compared to a $81 million net loss in Q4 2021.
Virgin Galactic generated $103.3 million in gross proceeds through the issuance of 16.3 million shares of common stock as part of the Company’s at-the-market offering programme announced on August 4th 2022.
The company said:
· Its commercial service remains on track for Q2/2023.
· On August 2nd 2022, it announced land in New Mexico secured for a new astronaut campus and training facility.
· On July 14th 2022, announced new final assembly manufacturing facility in Mesa, Arizona for the Delta Class spaceships.
· On July 6th 2022, announced agreement with Aurora Flight Sciences to build the next generation motherships.
The market didn’t much care for the report and marked Virgin Galactic shares down 18.3 per cent following the news. It recovered somewhat on March 2nd but is still down 7.73 per cent on the week.