Industry

Yahsat in Airbus talks to build new satellites

August 8, 2023, 10:28 AM

Yahsat satellites — The proposed merger of Bayanat and Yahsat will create a $4bn space technology company

UAE satellite provider reports $48m net profit
In talks with government and Bayanat
Company’s satellites reach over 80% of world’s population

Al Yah Satellite Communications Company (Yahsat) is in talks with Airbus to start work on two new satellites as it looks to build on a 5 percent rise in net profit for the first half of 2023.

Group CEO Ali Al Hashemi said the Abu Dhabi-listed company has signed an authorisation-to-proceed letter with the European aerospace giant to start the procurement of the Al Yah 4 and Al Yah 5 satellites.

Yahsat is also in advanced negotiations with the UAE government to secure a long-term contract that would “significantly increase and extend our backlog of contracted revenues beyond 2040”, he said in a statement.

“The satellite industry continues to witness substantial investments and the development of new business models,” Hashemi added.

“Together, these forces are driving industry consolidation and the necessary emergence of larger and stronger players. Yahsat remains in a strong position to take advantage of these developments.”

Yahsat reported a net profit of AED175 million ($48 million) for the first half of 2023 on revenue of AED753 million.

Hashemi also announced work on establishing a partnership with Bayanat to develop a constellation of five satellites, with the first expected to be launched in 2024, which will offer Earth observation capabilities.

In a filing to Abu Dhabi Stock Exchange, the company said it delivered revenue growth in infrastructure, its largest segment providing communications capacity to the UAE government, and data solutions offering satellite-based broadband.

It added that its contracted future revenue stood at AED7 billion while total available liquidity of AED2.3 billion could support “opportunistic acquisitions”.

The company said it is on track to grow its full year dividend by at least 2 percent to AED402 million.

Yahsat’s fleet of five satellites reaches more than 80 percent of the world’s population, enabling broadband, broadcasting, backhauling and mobility solutions.