Maersk fleet to become high-tech floating offices by 2027

LONDON - A.P. Moller - Maersk, a leading global containership operator, has entered into an agreement with Inmarsat Maritime, a Viasat company (NASDAQ: VSAT), to enhance satellite communications across its fleet of approximately 340 container ships. With Viasat’s strong revenue growth of 36% over the last twelve months and a market capitalization of $1.19 billion, this initiative marks a significant partnership in the maritime communications sector. The project is part of Maersk’s strategic plan to convert its vessels into advanced floating offices, aiming for completion by 2027.According to InvestingPro analysis, Viasat currently trades at an attractive Price/Book ratio of 0.24, suggesting potential value opportunity in the maritime communications sector.

The agreement stipulates that bandwidth improvements will be implemented fleet-wide between 2025 and 2026. These enhancements are designed to unify connectivity on board, allowing for seamless operational integration and improved conditions for crew members by offering better connectivity.

Karthikeyan Arumugam, Senior Product Manager at Maersk, emphasized the importance of connectivity in transforming vessels into floating offices. He highlighted that the partnership with Inmarsat Maritime is crucial for supporting Maersk’s digital transformation at sea and enhancing the crew’s working environment and well-being.

Ben Palmer OBE, President of Inmarsat Maritime, expressed that the partnership is tailored to meet Maersk’s evolving connectivity needs. The solutions provided by Inmarsat Maritime are intended to integrate with Maersk’s operations, ensuring a continuous and secure flow of information.

The collaboration between Maersk and Inmarsat Maritime sets a new standard in maritime connectivity, contributing to a more interconnected and efficient future in global shipping. This move aligns with the industry’s broader digitalization trend, where operational efficiency and crew welfare are becoming increasingly important. For investors interested in deeper insights into Viasat’s financial health and growth prospects, InvestingPro offers comprehensive analysis including 8 additional ProTips and a detailed Pro Research Report, available as part of the subscription.

The information in this article is based on a press release statement.

In other recent news, Viasat, a satellite communications company, has won a significant $3.5 million contract from the U.S. government under the Proliferated Low Earth Orbit Satellite-Based Services contract. This Task Order, the first for Viasat under the contract now valued at $13 billion, will see the company offering Ku-band Low Earth Orbit services to support U.S. government operations globally.

Cantor Fitzgerald, an investment firm, has initiated coverage on several companies within the Government Technology and Space sector, including Viasat, which was given a Neutral stance. The firm’s analysts see the Space industry as an increasingly catalyst-driven story, where incremental news can propel stocks upward despite high valuations.

In a strategic move aimed at bolstering its long-term growth, Viasat announced a significant restructuring of its Senior Executive Team. This restructuring announcement comes after Viasat’s acquisition of Inmarsat in May 2023, an event that combined the resources of both companies to form a new global communications partner.

Viasat has also been selected for a NASA contract potentially worth $4.8 billion. The contract is part of NASA’s Near Space Network Services, aiming to enhance direct-to-Earth communication capabilities for space missions. Viasat’s initial role under this contract will be to provide global ground segment support services.

Lastly, Viasat has been selected by NASA to provide support for the agency’s direct-to-Earth capabilities through the Near Space Network Services contract. This contract is a part of a broader five-year program, which may extend for an additional five years, reaching a total potential value of $4.82 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.