Avanti’s Hylas 3 date slips again
January 29, 2018
By Chris Forrester
Avanti Communications will not see a launch of its much-needed Hylas 3 satellite until “the first 3 months of 2019” according to a company statement.
However, there is better news on Hylas 4, a larger satellite, which Avanti says will launch on March 18 (subject to minimal delays caused by the Arianespace launch anomaly of January 25th). Avanti said: “The Company has been advised by Orbital ATK, the manufacturer of Hylas 4, to expect delivery of Hylas 4 in early February 2018. Arianespace has confirmed a launch date for Hylas 4 of March 16th 2018. The Company expects services to commence in July 2018. As at 30 June 2017, the Company had incurred approximately $237.4 million and expects to incur an additional $121.8 million in connection with the construction, launch and insurance of Hylas 4.”
As to the delayed Hylas-3, Avanti’s said: “Hylas 3 continues to experience delays and the European Space Agency has now advised Avanti not to expect a launch until the first three months of 2019. The Company is currently exploring the best options for the exploitation of Hylas 3. As at 30 June 2017, the Company had incurred approximately $49.5 million and expects to incur an additional $37.5 million in connection with the construction and launch of Hylas 3.”
In a general update to trading, Avanti’s statement added: “The directors forecast that revenue for the current financial year will not be less than $50 million. In addition, there is a large infrequently recurring transaction in the pipeline that, if it closes, would add a further $40 million to Group revenue, with $18 million of associated costs, in the current year. With effect from the end of the current financial year, the Company expects substantial growth in revenue driven off the introduction of Hylas 4 to the fleet opening up new markets in sub-Saharan Africa.”
Avanti said that Hylas 4 is expected to be 20-25 per cent utilised by June 30th (which is the end of Avanti’s financial year).
Avanti is in the process of restructuring its debts in a debt-for-equity share issue. It launched its share consent solicitations on January 25th, and the closing date for acceptances is February 7th or February 22nd depending on the notes.