One of the main complaints from an SES major shareholder, Appaloosa (which holds 7 per cent of SES) was the company’s poor dividend policy.

However, SES used its report to shareholders ahead of its AGM on April 4th to explain in some detail how its dividend policy would evolve, and in some respects answer at least one of Appaloosa’s complaints. Attached to the documents, (and on Page 205 out of 206) is SES’s explanation.

SES says it wants to maintain its investment grade status with its benefits in terms of borrowing costs, but it is “prioritising shareholder renumeration”. It wants to see its Adjusted Net debt to Adjusted EBITDA return to 3-times within 12-18 months after the closing of the Intelsat transaction. “The company then intends to increase the annual base dividend and then prioritise shareholder remuneration when allocating any future exceptional cashflows of the combined company.”

This suggests that with the Intelsat purchase closing in H2 2025 (and some expect it to happen this summer) then 12-18 months later will take the company to the end of 2026, and thus a new dividend policy should emerge in time for the April 2027 first portion payment.

Meanwhile, SES has some expensive obligations in the current financial year, not least closing its acquisition of Intelsat (for $3.1 billion) plus beginning its investment in SpaceRISE consortium, where it is a leading member of the IRIS2 scheme to build a new constellation of satellites for “governmental institutions, commercial organisations, and European citizens”. SES has – at least – to develop, procure and operate 18 new MEO satellites.

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Categories: Blogs, Business, Inside Satellite, Satellite

Tags: Appaloosa, SES