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Latest Telesat launch moved up
Russian rocket expected to lift Nimiq 4 next month
Bert Hill, The Ottawa Citizen
Published: Tuesday, August 12, 2008
Telesat Holdings, the Ottawa satellite operator, said yesterday that a major new broadcast satellite is expected to launch next month, later than its original date, but not as late as feared.
Technical problems at a Russian launch company had postponed the original launch plan of Nimiq 4, hurting investor confidence in Loral Space and Communications, the U.S. company that gets a majority of Telesat profits.
The satellite, leased to Bell Expressvu for high-definition broadcasting, was originally scheduled to launch this spring. But the failure of a Russian Proton rocket carrying another satellite pushed the Nimiq launch into December or early 2009.
An earlier launch means that Telesat and Loral can start reaping the benefits sooner. Loral is under investor pressure to improve results in the wake of troubles in a satellite manufacturing operation, past bankruptcy filings and continuing legal battles between investors.
The depressed Loral shares rose as much as nine per cent to $18.46 on the news.
Telesat chief executive officer Dan Goldberg told analysts that Nimiq will fly in late September, assuming that the launch company is first successful putting an Inmarsat satellite into orbit.
"We will be watching the Inmarsat launch closely."
The Nimiq will start generating estimated revenue of $75 million annually two months after launch.
The former Telesat Canada was sold last October by BCE for $3.25 billion to Loral and the Public Sector Pension Investment Board, which manages federal government employee pensions funds. The pension plan controls the Telesat board in order to meet Canadian ownership rules and gets 36 per cent of Telesat profits.
Telesat said that revenues rose four per cent to $169.5 million in the second quarter ending in June compared to the first quarter ending in March.
It turned a profit of $12.4 million compared to a loss of $101.4 million in the preceding March quarter.
Comparison with year-earlier figures are difficult because of the challenge of blending the two companies.
The new Telesat fleet of 12 satellites now includes Loral satellites and three more under construction. Telesat also manages 13 satellites for other customers.
Telesat said that foreign exchange losses in the first quarter and gains in the second quarter drove the bottom-line results.
The launch of the Anik F3 satellite last year increased revenues as well as additional in-orbit insurance costs.
Telesat slashed jobs and operations in the combined Telesat-Loral operation.
Mr. Goldberg said that "we are capturing savings faster than we anticipated" in a program designed to reduce operating costs by $55 million two years after the merger.
He said that Telesat expects to sign contracts in the next six months on plans to replace two Loral satellites in the 2010 and 2013 periods.
Satellites typically take 30 months to build and cost about $250 million each.
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Russian rocket expected to lift Nimiq 4 next month
Bert Hill, The Ottawa Citizen
Published: Tuesday, August 12, 2008
Telesat Holdings, the Ottawa satellite operator, said yesterday that a major new broadcast satellite is expected to launch next month, later than its original date, but not as late as feared.
Technical problems at a Russian launch company had postponed the original launch plan of Nimiq 4, hurting investor confidence in Loral Space and Communications, the U.S. company that gets a majority of Telesat profits.
The satellite, leased to Bell Expressvu for high-definition broadcasting, was originally scheduled to launch this spring. But the failure of a Russian Proton rocket carrying another satellite pushed the Nimiq launch into December or early 2009.
An earlier launch means that Telesat and Loral can start reaping the benefits sooner. Loral is under investor pressure to improve results in the wake of troubles in a satellite manufacturing operation, past bankruptcy filings and continuing legal battles between investors.
The depressed Loral shares rose as much as nine per cent to $18.46 on the news.
Telesat chief executive officer Dan Goldberg told analysts that Nimiq will fly in late September, assuming that the launch company is first successful putting an Inmarsat satellite into orbit.
"We will be watching the Inmarsat launch closely."
The Nimiq will start generating estimated revenue of $75 million annually two months after launch.
The former Telesat Canada was sold last October by BCE for $3.25 billion to Loral and the Public Sector Pension Investment Board, which manages federal government employee pensions funds. The pension plan controls the Telesat board in order to meet Canadian ownership rules and gets 36 per cent of Telesat profits.
Telesat said that revenues rose four per cent to $169.5 million in the second quarter ending in June compared to the first quarter ending in March.
It turned a profit of $12.4 million compared to a loss of $101.4 million in the preceding March quarter.
Comparison with year-earlier figures are difficult because of the challenge of blending the two companies.
The new Telesat fleet of 12 satellites now includes Loral satellites and three more under construction. Telesat also manages 13 satellites for other customers.
Telesat said that foreign exchange losses in the first quarter and gains in the second quarter drove the bottom-line results.
The launch of the Anik F3 satellite last year increased revenues as well as additional in-orbit insurance costs.
Telesat slashed jobs and operations in the combined Telesat-Loral operation.
Mr. Goldberg said that "we are capturing savings faster than we anticipated" in a program designed to reduce operating costs by $55 million two years after the merger.
He said that Telesat expects to sign contracts in the next six months on plans to replace two Loral satellites in the 2010 and 2013 periods.
Satellites typically take 30 months to build and cost about $250 million each.
Reply With Quote
.