• New run-rate of SEK 132m
• The SEK 132m to be paid in 2024 - much supportive to B/S and CF
Extended order from SSC
This morning Ovzon announced that it has received an extended SATCOM-as-a-Service order from Swedish Space Corporation (SSC). The extended order means that Ovzon has extended the SEK 115m order that the company signed in September, comprising a value of ~SEK 17m and bringing the new run rate to SEK 132m. As we pointed out in our September commentary, the order represents a contraction compared to the annualised December 2023 order (annualised value of ~SEK 180m), which is likely partly due to a lower share of terminal sales. That said, it should be noted that today's order also includes additional On-The-Move satellite terminals (share not specified).
The SEK 132m to be paid in 2024
Although SSC's September extension was expected, today's extension was not, per se, expected, although a gradual improvement in sales is already factored into our forecasts, partly in light of the fact that Ovzon-3 is now operational (but not fully utilised). The impact of the announcements on sales estimates may therefore be limited at first sight. However, a positive aspect of the extended order is that it will be paid to Ovzon in 2024, supporting both its B/S (NIBD excluding leasing of SEK 546m in Q3) and cash flow.
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