Thursday, April 10, 2008

SES AMERICOM Declares AMC-14 a Total Loss

SES declared its new AMC-14 a total loss for insurance purposes. The company said that while an initial assessment of the available options to reposition the satellite appeared encouraging, more detailed examinations by SES and Lockheed Martin engineers determined that the various scenarios could not provide a reasonable chance of success. While AMC-14 is currently in a stable orbit, SES is exploring plans to retire the satellite.

"The loss of any satellite is a disappointment, and the failure of AMC-14 means there will be no revenues to come from this programme. However, SES is fully insured for its investment, and there will be no negative P&L impact from the accelerated write-down of AMC-14. We expect to receive the insurance proceeds of approximately USD 150 million in the next few months, thereby enhancing our cash position. The rest of our business in North America and worldwide has no connection with, and is unaffected by, this launch failure," commented Mark Rigolle, Chief Financial Officer of SES.

  • On March 15, SES AMERICOM's AMC-14 satellite failed to reach its intended orbit following its launch on board a Russian Proton Breeze-M launch vehicle on March 15. An anomaly during the second burn of the fourth stage of the rocket resulted in the satellite being placed short of the planned geostationary transfer orbit. The spacecraft is entirely contracted by EchoStar.