Friday, September 22, 2023 – 9:42 AM
Abu Dhabi, September 22nd / WAM / Al Yah Satellite Communications Company “Yahsat”, the leading provider of satellite communications solutions in the UAE, today announced that its government arm, “Yahsat Government Services YGS”, has been awarded a contract worth 18.7 billion dirhams. To provide satellite communications services by the government of the country, under which it undertakes to provide space capacity on satellites and managed services over a period of 17 years.
The commissioning order includes a set of services related to the operation, maintenance and technical management of terrestrial satellite systems and substations, which the company is currently providing to the government under a separate contract, which will replace two current agreements between the UAE government and Yahsat, which are the Satellite Capacity Services Agreement (CSA) and the Delegation. Managed Services “MSM”, noting that these two agreements expire in November and December 2026, respectively.
According to the commissioning order, Yahsat will provide secure and reliable satellite capacity as well as related managed services via the Al Yah 1 and Al Yah 2 satellites, both of which are currently in operation, with the provision of these services being enhanced via the new satellites, Al Yah 4 and Al Yah. 5, which are expected to be launched in 2027 and 2028, respectively.
This agreement confirms Yahsat’s strong relationship with the government, which extends over nearly two decades since the company’s founding. This step also reflects Yahsat’s vital role as a preferred and reliable partner in providing secure satellite capacity and solutions to the country, which will contribute to achieving a significant increase in The group’s future contracted revenues reach 25.7 billion dirhams, exceeding its annual revenues achieved in the year 2022 by 16 times, and thus extending the contracted revenue stream beyond the year 2040, which provides confidence and a clear vision regarding the company’s future cash flows.
It should be noted that in June 2023, Yahsat granted a mandate to Airbus ATP to manufacture the two new satellites, Al Yah 4 and Al Yah 5. This step allows for better management of the program schedule, especially with regard to the possibility of starting the implementation of certain activities. Including reviewing system requirements, design work, and initiating the supply of basic needs.
Yahsat intends to provide the necessary funding for the launch program of the Al Yah 4 and Al Yah 5 satellites, including space equipment, preparation of ground infrastructure, the launch process and insurance, from its own resources, in addition to other potential financing options currently under study. The commissioning order also includes the government disbursing… An advance payment of one billion dollars in 2024.
Musabih Al Kaabi, Chairman of the Board of Directors of Yahsat Group, said on this occasion: “We are honored by the confidence of the UAE government in our ability to continue providing vital and secure satellite communications services for an additional 17 years after the year 2026. This assignment reflects the close and extended relationship with the government and the quality of our services. We always strive to exceed customer expectations.”
He added that the new generation satellite fleet, Al Yah 4 and Al Yah 5, enhances the capabilities of our current fleet by providing new and innovative services, as the performance of the new satellites is expected to significantly exceed the capabilities of the current satellites in terms of capacity, geographical coverage and flexibility that allows us to provide The UAE government has a wide range of modern applications. We are eagerly looking forward to starting the new phase, keeping in mind providing distinguished operational performance to serve the UAE government.”
For his part, Ali Al Hashemi, CEO of the group, said: “Obtaining the assignment order enables us to continue our vital role in providing space capacities and associated services to the UAE government until 2026, through our current satellites, and the continuity of services until after the year 2040.” Through two new satellites that are currently being manufactured, this step launches a new stage in Yahsat’s busy journey in the field of providing satellite communications services to the UAE government.”
Al Hashemi continued: “In addition to the other ambitious projects Yahsat is working on, the AED 18.7 billion commission puts the company on the path to sustainable growth. The company enjoys an unprecedentedly strong financial position and has contracted future revenues worth AED 25.7 billion. At more than 16 times its annual revenues compared to the end of the second quarter of this year, Yahsat has one of the largest future contracted revenues and one of the strongest balance sheets in the sector, and we are optimistic about our ability to provide a more diversified and advanced solutions package to serve the government and other customers. “
Dina Omar / Al-Yazia Al-Kaabi
2023-09-22 05:44:56
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