GOL records over R$1 billion recurring EBITDA in 4Q22

Rhea-AI Summary

GOL Linhas Aéreas announced its fourth quarter 2022 results, highlighting a record recurring EBITDA of R$1.2 billion, the highest since 2019. The net operating revenue surged to R$4.7 billion, up 61.7% year-over-year. Despite the increase in operational efficiency, the average occupancy rate fell to 80.1%. The company reported a net income of R$230.9 million, resulting in R$0.55 per share. GOL's total liquidity reached R$4.1 billion, up 11.7% from the previous quarter. The CEO emphasized the focus on cost control and increasing margins and hinted at further productivity improvements in the upcoming year.

Positive

• Recurring EBITDA was R$1.2 billion, the highest since Q4 2019.
• Net operating revenue reached R$4.7 billion, 61.7% higher than Q4 2021.
• Unit costs ex-fuel decreased by 12.3% compared to Q4 2021.
• Total liquidity was R$4.1 billion, up 11.7% from Q3 2022.
• Net income was R$230.9 million, translating to R$0.55 per share.

Negative

• Average occupancy rate decreased to 80.1%, down 2.5 percentage points year-over-year.
• Recurring net loss was R$381.5 million, or -R$0.91 per share.

SÃO PAULO, March 8, 2023 /PRNewswire/ --  GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), the largest domestic airline in Brazil, today announced its consolidated results for the fourth quarter of 2022 (4Q22). During the quarter, the Company recorded its highest EBITDA since the beginning of the pandemic, resulting from Management's continued focus on achieving higher productivity by increasing yields, reducing unit costs excluding fuel, and improving fleet utilization. The combination of higher productivity with strong tourism demand resulted in a significant improvement in operating margins during the fourth quarter.

All information in this release is presented in Reais (R$), in accordance with international accounting standards (IFRS) and with adjusted metrics, made available to enable comparison of this quarter with the same period of the previous year (4Q21). Adjusted (recurring) indicators exclude non-recurring expenses related to the quarter's results, and are detailed in the respective tables.

The financial information for the year ended December 31, 2022 and for the three-month period ended December 31, 2022 disclosed herein has not been audited or subject to limited review by GOL's independent auditors. The complete financial statements for the year ended December 31, 2022 is still under review by the Company's independent auditors and will be released to the market after the completion of the relevant work. GOL does not anticipate adjustments or changes to the information disclosed herein. However, should any adjustment be necessary, the Company will timely inform the market.

4Q22 Highlights

• Recurring EBITDA reached R$1.2 billion, the highest since 4Q19; recurring EBIT margin was 15% and recurring EBITDA margin was 25%;
• Record net operating revenue of R$4.7 billion, 61.7% higher than 4Q21 and 24.3% higher than 4Q19;
• Net income of R$0.2 billion, represents R$0.55 per share and US$0.21 per ADS;
• Unit costs ex-fuel were 3.6 cents (US$), the lowest since the pandemic outbreak and 12.3% lower than 4Q21; and
• Total liquidity (cash and cash equivalents, financial investments, deposits and accounts receivable) was R$4.1 billion, 11.7% higher than 3Q22.

Comment from the CEO

Celso Ferrer, CEO, commented: "This year was marked by the return to normal operations in many aspects. We were focused on controlling costs and increasing our margins, and our strong results in the fourth quarter are evidence that our approach is working. Customer demand continues to grow, particularly from business and "bleisure" travelers. During the quarter, we also reactivated more routes from Congonhas and Santos Dumont to serve the corporate segment, an important source of continued growth in revenues. As we head into 2023, we will maintain the consistency of our operational performance and will strengthen our network with routes that further enhance our productivity levels. GOL is on a steady course for success. I'd like to thank all of our Customers, Team of Eagles, suppliers, partners and shareholders for their trust in us, which was essential to reach this point in the Company's evolution."

SUMMARY OF the Fourth Quarter 2022 Results (VS. 4Q21)

• Revenue Passenger Kilometers (RPK) increased by 25.1%, while Available Seat Kilometers (ASK) increased by 29%;
• Net Revenue increased by 61.7%, reaching a record R$4.7 billion. Ancillary Revenues, mainly from SMILES and GOLLOG, tripled to R$340.7 million during the quarter;
• The average occupancy (load factor) decreased by 2.5p.p. to 80.1%. The registered domestic load factor was 80.6%, 2.1 p.p. lower than in 4Q21, while the international load factor was 75.6%;
• Aircraft utilization was an average of 11.6 hours per day;
• The number of passengers transported by the Company was 7.8 million, a year-over-year increase of 18.6%;
• Net Revenue per Available Seat Kilometer (RASK) increased by 25.3% to 41.5 cents (R$);
• Average yield per passenger increased by 24.8% to 48.2 cents (R$), the highest level in GOL's history;
• Recurring Cost per Available Seat Kilometer (CASK) increased by 2% to 35.35 cents (R$). The CASK Fuel increased by 40.9% to 16.25 cents (R$), due to the 43.6% increase in aviation kerosene (QAV) prices. The recurring CASK Ex-Fuel was reduced by 17.4% to 19.09 cents (R$), or 3.6 cents (US$);
• Recurring EBITDA was R$1.2 billion with a margin of 25%, while recurring EBIT was R$706 million with a margin of 15%;
• The Company generated approximately R$0.8 billion of cash in 4Q22 due to higher revenues and working capital initiatives, partially offset by the increase in aviation fuel prices;
• Net income was R$230.9 million (R$0.55/share and US$0.21/ADS), while recurring net loss was R$381.5 million (-R$0.91/share and -US$0.35/ADS); and
• The net debt ratio (including 7x annual lease payments and excluding perpetual bonds) over recurring LTM EBITDA was 9.5x as of December 31, 2022, and 0.2x lower than the leverage at the end of 2021. US$200 million of Secured Amortizing Notes were issued in December, and higher lease payments were made in the quarter.

FULL EARNINGS RELEASE & PRESENTATION 
Access the earnings release, presentation and full financial statements at: www.voegol.com.br/ir

4Q22 Conference Call: March 8, 2023, 09:00 am (New York time; US EDT), Phone: +1 (412) 317-6382, Code: GOL, broadcast via webcast (https://webcastlite.mziq.com/cover.html?webcastId=e482b833-3183-4026-ac32-63f245f074b7).

Investor Relations: ri@voegol.com.br, +55(11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): The largest airline in Brazil, leader in the corporate and leisure segments. Since it was founded in 2001, the Company has the lowest unit cost in Latin America, thus democratizing air transportation of passengers.

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What were GOL's EBITDA results in Q4 2022?

GOL reported a recurring EBITDA of R$1.2 billion in Q4 2022.

How much did GOL's net income reach in Q4 2022?

GOL's net income for Q4 2022 was R$230.9 million, or R$0.55 per share.

What was GOL's total liquidity at the end of Q4 2022?

GOL's total liquidity reached R$4.1 billion at the end of Q4 2022.

How did GOL's operating revenue perform in Q4 2022?

GOL's net operating revenue increased to R$4.7 billion, marking a 61.7% year-over-year growth.

What was the impact of fuel prices on GOL's costs in Q4 2022?

Recurring CASK Fuel increased by 40.9% in Q4 2022, primarily due to rising aviation kerosene prices.