Within the SES fleet we operate nine Lockheed Martin A2100 satellites which have experienced varying degrees of power loss in some of their solar array circuits. To date, the power loss has caused a minor reduction in available commercial capacity in two of these nine satellites (AMC-4 and AMC-16). AMC-4 C-band customers have been transferred to AMC-2, which has been co-located with AMC-4 at the 101 degrees West orbital position. The AMC-16 satellite capacity reduction resulted in an adjustment to the monthly revenue payments by the customer.
Together with Lockheed Martin, we have undertaken an extensive assessment of the potential impact of solar array circuit anomalies across the fleet. There is some potential for future additional degradation, although the likelihood of this is difficult to estimate. SES has in-orbit backup capacity for certain of these satellites. If the observed solar array circuit degradation continues at historical rates, over time we may need to switch off additional payload on affected satellites or advance the procurement of replacement satellites. Contingency plans are in place such that the impact on SES group revenues and replacement capital expenditure requirements is anticipated to be marginal. Our existing in-orbit insurance policy provides coverage based on the net book value of our satellites. The policy includes a deductible that may limit any proceeds from future insurance claims related to such anomalies. Current and future financial guidance will incorporate any development relating to the SES fleet health.