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September 22
Al Yah Satellite Communications Company announced that its governmental arm, Yahsat Government Services (“YGS”), has obtained a commissioning order from the Government of the United Arab Emirates (“UAE Government”), under which Yahsat will provide space capacity on satellites and managed services on For a period of 17 years, within a contract with a total value of 18.7 billion dirhams ($5.1 billion).
The commissioning order granted to Yahsat 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, and will replace two existing agreements between the UAE government and Yahsat, namely the Satellite Capacity Services Agreement. “CSA” and Managed Services Delegation (“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 in addition to 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. They are expected to be launched in 2027 and 2028, respectively.
This agreement confirms Yahsat’s strong relationship with the UAE 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 to provide secure satellite capacity and solutions to the UAE government, which will contribute to achieving A significant increase in the future contracted revenues of the Yahsat Group, reaching 25.7 billion dirhams ($7.0 billion), exceeding its annual revenues achieved in 2022 by 16 times, and thus extending the contracted revenue stream beyond the year 2040, which It provides confidence and a clear view of the company’s future cash flows.
It is worth noting that in June 2023, Yahsat granted Airbus ATP a mandate to manufacture the two new satellites, Al Yah 4 and Al Yah 5. This step allows the program’s schedule to be managed in the best way, especially with regard to the possibility of starting to implement certain activities, including Review system requirements, design work, and initiate 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: “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 2026. This assignment reflects the close and extended relationship with the UAE government and the quality Our services: As we are always keen to exceed customer expectations, 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 greatly exceed the capabilities of the current satellites, both in terms of capacity. , geographic coverage, and flexibility that allow us to provide the UAE government with a wide range of modern applications. We are very much looking forward to starting the new phase, keeping in mind providing distinguished operational performance to serve the UAE government.”
Ali Al Hashemi, CEO of Yahsat Group, said: “Obtaining the commissioning order enables us to continue our vital role in providing space capacity and associated services to the UAE government until 2026 through our current satellites, and the continuity of services beyond the year 2040.” Through two new satellites currently being manufactured. This step launches a new phase in Yahsat’s busy journey in providing satellite communications services to the UAE government. In addition to other ambitious projects that Yahsat is working on, the AED 18.7 billion ($5.1 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 25.7 billion dirhams ($7.0 billion), 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.”
