GomSpace and ESA cancel next phase of climate observation mission

Written by Copernical Team Tuesday, 06 June 2023 04:53

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Aalborg, Denmark (SPX) Jun 06, 2023

In European space news, GomSpace and ESA have decided not to proceed to the next phase of the CubeMap mission, a climate observation initiative. The mission had been envisaged as a collaboration between the ESA, Denmark-based GomSpace, and UK-based RAL Space. In December 2021, GomSpace and RAL Space signed a contract with the European Space Agency (ESA) for the Scout-1 Mission, otherwise k

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GomSpace and ESA cancel next phase of climate observation mission
by Staff Writers
Aalborg, Denmark (SPX) Jun 06, 2023

In European space news, GomSpace and ESA have decided not to proceed to the next phase of the CubeMap mission, a climate observation initiative. The mission had been envisaged as a collaboration between the ESA, Denmark-based GomSpace, and UK-based RAL Space.

In December 2021, GomSpace and RAL Space signed a contract with the European Space Agency (ESA) for the Scout-1 Mission, otherwise known as CubeMap. Over the past year, all parties worked tirelessly to finalize the scope and requirement specifications for the mission. However, following extended discussions, it was determined that GomSpace and RAL Space could not meet the Scout-1 Mission's program budgetary constraints set by the ESA.

The decision, while not desirable or easy for any of the parties involved, was a reflection of GomSpace's commitment to ensuring reasonable profitability and cash flow in all their ventures. The CEO of GomSpace, Carsten Drachmann, expressed his gratitude towards their partner, RAL Space, and commended the ESA's program management for their efforts in trying to make the mission feasible.

Despite the setback, Drachmann remains optimistic about future space exploration opportunities with the ESA and other partners. "Despite current disappointments in not being able to complete such an exciting mission, I am looking forward to continuing our new space explorations in other areas, together with ESA and other partners," he said.

GomSpace revealed that the company has invoiced approximately EUR 3,200,000 for the work carried out to date, from the original contract value share of EUR 7,000,000. The remaining EUR 3,800,000 will be subtracted from the order backlog. It's worth noting that the revenue from this aspect was not expected to contribute any margin under the given conditions.

Additionally, GomSpace reported an order intake of EUR 24,000,000 as part of the original contract, of which EUR 17,000,000 was for passthrough sales to third parties. Approximately EUR 650,000 of this amount has been invoiced to date, and the order backlog for passthrough sales will be reduced by approximately EUR 16,350,000.

Drachmann recognized that this development would impact the company's top line in the short term, but he maintained that it was not expected to substantially affect the company's contribution margin and free cash flow, given the circumstances. With this unexpected turn of events, the space exploration community waits in anticipation to see what other missions GomSpace and its partners will embark upon in the future.