Yahsat has been appointed to complete detailed analysis, assessment and recommendation for 2 new satellites, which would be targeted for launch in 2026
These anticipated new missions for the UAE Government would add capacity, coverage, and capabilities to enable next-generation applications
Launch of new satellites presents significant growth opportunities across Yahsat's business, and would further bolster contracted backlog and secure longer-term financial outlook
Abu Dhabi, UAE October 5, 2021 Al Yah Satellite Communications Company PJSC ( Yahsat and, together with its subsidiaries, the Group ) listed on the Abu Dhabi Securities Exchange ( ADX ) under (SYMBOL: YAHSAT) (ISIN: AEA007501017), the UAE's flagship satellite solutions provider, today announced that it has been formally requested to perform a thorough study in order to support a contract to augment the capacity already provided to the United Arab Emirates (UAE) Government on its existing satellites, Al Yah 1 and Al Yah 2, with two potential additional satellites, Al Yah 4 and Al Yah 5.
The new anticipated capacity would augment the secure high-throughput capacity currently contracted on Al Yah 1 and Al Yah 2 with new coverage, capabilities and capacity to meet the next-generation demands of this key customer. The combined use of Al Yah 4 and Al Yah 5 with Al Yah 1 and Al Yah 2, which are expected to continue in parallel for several years, is expected to have a positive impact on Yahsat's future growth and secure the longer-term financial outlook.
Yahsat will pursue an RFP process to identify satellite vendors that offer the best technical and commercial solution to manufacture two geostationary satellites for a prospective launch by 2026 and make a recommendation to the UAE Government.
Any such agreement would further add to the Group's already significant contracted backlog, which stands out significantly from its industry peers at over five times current annual revenues, and underpins Yahsat's strong balance sheet, cash flow and low leverage position. These factors together form the right financial conditions to pursue such programs to create long-term shareholder value in parallel to delivering dividends.
Ali Al Hashemi, Group Chief Executive Officer at Yahsat, said: Yahsat has long been recognised as a strong national champion, a global ICT leader, and an enabler of critical communications infrastructure. This potential expansion of our fleet for the UAE Government would further underpin our long-term contracted backlog and reinforces our position as the UAE's primary supplier and preferred partner to the UAE Government for advanced satellite communications and critical satellite connectivity needs.
Al Hashemi added, We continuously strive to provide our customers and partners with best-in-class solutions and equipment. Today's announcement to assess the expansion of the existing fleet presents a significant opportunity to enhance Yahsat's business value for all stakeholders, allowing us to capitalise on our future growth strategy.
Yahsat has a long-standing relationship with the UAE Government going back over a decade. The first satellite, Al Yah 1, launched in 2011 and the second satellite, Al Yah 2, launched in 2012, serve markets in the Middle East, Africa, Europe and Central and South West Asia.
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Yahsat has been appointed to complete detailed analysis, assessment and recommendation for 2 new satellites, which would be targeted for launch in 2026
