Yahsat receives $5.1bn ATP mandate for satellite capacity & services

By Arya M Nair, Official Reporter
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Yahsat gets $5.1 billion mandate
Rep.Image (Courtesy: Yahsat)

Yahsat Government Solutions (YGS), the government services arm of Al Yah Satellite Communications Company (Yahsat), has received an Authorization to Proceed (ATP) from the UAE Government to provide satellite capacity and managed services for 17 years.

Valued at $5.1 billion, this mandate given to Yahsat combines related operations, maintenance and technology management services of ground segment satellite systems and terminals currently provided under a separate contract. This will replace two current agreements, the Capacity Services Agreement (CSA) and the Managed Services Mandate (MSM), which will 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 with two new satellites, Al Yah 4 (AY4) and Al Yah 5 (AY5) which are expected to be launched in 2027 and 2028, respectively.

The mandate reinforces Yahsat’s long-standing and unique relationship with the government, dating back almost two decades since its inception, highlighting its critical role as the preferred and trusted partner to the government for the supply of secure satellite capacity and solutions.

It also significantly increases the Group’s contracted future revenues to $7 billion, over 16 times its 2022 annual revenues, extending backlog well beyond 2040 and providing security and visibility over its future cash flows.

Musabbeh Al Kaabi_Yahsat receives satellite capacity & service contract
Musabbeh Al Kaabi
Chairman – Yahsat

“By complementing our existing fleet with Al Yah 4 and Al Yah 5 next-generation satellites, we will be able to serve the government with new cutting-edge solutions that are not currently possible. The performance of the new satellites is expected to significantly surpass current industry capabilities, including capacity, coverage and flexibility, allowing us to offer a wide range of next-generation applications to our end users. We are excited by this new journey and look forward to serving our customers with true operational excellence.”

In June 2023, Yahsat signed an Authorization-to-Proceed with Airbus (Airbus ATP) for the construction of AY4 and AY5. This preserves the program schedule and enables certain activities to commence, such as system requirements review, design work and procurement activities for long-lead items. The AY4 and AY5 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 $1 billion to be received in 2024.

Mr. Ali Al Hashemi, Group CEO at Yahsat, said that “The $5.1 billion 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 $7. billion 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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