Al Yah Satellite Communications, better known as Yahsat, received a contract worth Dh909.5 million ($247.6m) to provide managed services to the UAE government for its satellite communications capabilities.
The company's government arm, Yahsat Government Solutions, signed the agreement, which augments previously provided operations and maintenance services along with technology management support from January 2021 until the end of 2026, Yahsat said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The contract is in line with Yahsat’s strategy to expand its managed solutions business capabilities across its value chain and provide more strategic services to key clients within the UAE and internationally.
The mandate also adds to Yahsat group’s contracted future revenue, which now stands at about Dh8.4 billion.
“Today’s announcement validates our strategic approach to expand our offering across the value chain while enhancing our ability to provide end-to-end secure and critical satellite solutions and connectivity,” said Ali Al Hashemi, group chief executive at Yahsat.
“This further demonstrates the strength of our relationship with the UAE government, with whom we have had a strong partnership for over 10 years.”
The latest deal also provides “more visibility” on the long-term financial outlook of the company, he said.
Yahsat has been providing operations and maintenance services since 2011 on its first two satellites, Al Yah 1 and Al Yah 2, under a 15-year capacity services agreement with the UAE government.
Last year, the company was requested by the government to explore options for two new satellites – Al Yah 4 and Al Yah 5, which are set to be launched by 2026.
Yahsat, a unit of Mubadala Investment Company, raised about $731m from its initial public offering last July.
It sold 975.9 million shares, or 40 per cent of equity through the IPO, which was several times oversubscribed, with significant demand from both qualified institutional and retail investors in the UAE, Yahsat said at the time.
Earlier this month, Yahsat secured a Dh24m contract from Abu Dhabi Ship Building to deliver secure satellite communication solutions.
As a part of the deal, it will design, deliver and integrate the satellite communication systems in vessels made by the ship builder, the Abu Dhabi Media Office said in a February 10 statement.
The company offers multi-mission satellite services in more than 150 countries across Africa, Asia, Australasia, Europe, the Middle East and South America.
Yahsat, which is among the top-10 satellite operators in the world by revenue, expects income from its global data services to significantly rise once it adds new technology and launches another satellite into orbit in 2023, Mr Al Hashemi told The National in September.
It currently earns a large chunk of its income from voice services.
