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14 Sep 2022
A $220 Million Loss for OneWeb Due to Satellites Left in Russia After Canceled Launches
Although several Russia-launched satellites had to be scrapped, OneWeb's operating losses for the year increased by 631 percent due to the losses during shipment.
However, following Russia's invasion of Ukraine, the Russian space agency Roscosmos restricted access to its Soyuz rockets, the type of rocket used by OneWeb's original launch partner Arianespace. Afterward, the agency asked the UK government to divest its stake in OneWeb.
The project's second phase included upgrading and replacing the original air handling units in the data center. Over three weeks, an energy-efficient FlaktGroup Direct Expansion Multi-DENCO air-cooled air handling unit was installed in a downflow configuration.
As a result, the satellite company will not be launching more satellites from the facility. In total, six launches will be canceled. In addition, OneWeb revealed that the satellite slated to launch this week hadn't been returned to the company.
The company noted a $229.2 million impairment charge in its annual report for 2022 due to the losses incurred.
According to OneWeb, "due to the postponement of a planned launch on 4 March 2022, the associated postponement of subsequent scheduled launches, the loss of satellites not returned to the group, and the impairment of a portion of the Group's prepaid launch insurance."
Based on the current report, "negotiations are ongoing" with vendors for the recoverability of satellites and undelivered services: "As the outcome of these negotiations is uncertain, no asset has been recognized,"
In a report, Sunil Bharti Mittal, the chairman of OneWeb, said. "Our shareholders were steadfast in supporting the business while it navigated the impact of this postponement. As a result, the business pivoted quickly to source replacement launches from the international market in weeks. This effort has been recognized by our investors, distribution partners, vendors, and the wider industry."
The posted revenues for the year totaled $9.6 million, an EBITDA of $186.9 million in losses, $425.9 million in losses, and a total loss of $389.8 million overall. Capital expenditures for the year were $667.1 million.
A total of 37 distribution partner agreements were signed, with commitments totaling more than $300 million, according to OneWeb.
OneWeb has signed a deal with rival satellite company SpaceX for launch on the latter's rockets in the US and another agreement with New Space India to cover the world by 2023.
The company operates eight Satellite Network Portals and has agreed to build 38 more in 27 countries.
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