This agreement increases the group’s contracted future revenues to Dhs25.7bn, over 16 times its 2022 annual revenues
Satcom giant Yahsat has said that its government services arm, Yahsat Government Solutions, has been authorised by the UAE government to provide satellite capacity and managed services for a period of 17 years.
This mandate, valued at Dhs18.7bn combines related operations, maintenance and technology management services of ground segment satellite systems and terminals currently provided under a separate contract.
The mandate will replace two agreements, the capacity services agreement and the managed services mandate, which come to an end in November and December 2026, respectively.
Under the new mandate Yahsat will provide the government with secure and reliable satellite capacity and related managed services using the Al Yah 1 and Al Yah 2 satellites, currently in orbit, and supplement this by two new satellites, Al Yah 4 and Al Yah 5, which are expected to be launched in 2027 and 2028, respectively.
Mandate to help Yahsat increase contracted future revenues
This agreement increases the group’s contracted future revenues to Dhs25.7bn, over 16 times its 2022 annual revenues, extending backlog well beyond 2040 and providing security and visibility over its future cash flows.
The company signed an authorisation-to-proceed with Airbus in June for the construction yhe two new satellites.
The procurement, including spacecraft, ground segment infrastructure, launch and insurance, will be funded by Yahsat’s own resources as well as other potential funding options which are currently under review. In addition, the award includes an advance payment from the government of $1bn to be received in 2024.
Musabbeh Al Kaabi, chairman of Yahsat, said: “We are honoured to secure the continued trust of the UAE government to provide critical, secure communication services for a further 17 years beyond 2026.”
From his side, Ali Al Hashemi, group chief executive officer, said: “The mandate positions Yahsat for sustainable future growth, alongside other ambitious projects in the pipeline. Our financial position has never been stronger and we now enjoy a contracted revenue backlog of Dhs25.7bn or over 16 times annual revenues based on backlog figures at the end of the second quarter.
“Representing one of the largest backlog multiples and strongest balance sheets in the industry, we remain optimistic about providing a broader, more diverse and cutting-edge solutions portfolio to both the government and our customers.”
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