More fantastic reporting by Intelligence Online: shortage of Israeli homegrown SAR and optical satellites has provided opportunity for Blacksky and Maxar. Israel’s ImageSat (TLV: ISI) owns and operates just one optical satellite in its EROS constellation – EROS C3. (Partners own EROS C1 and C2.) Israel needing more frequent imagery, fully booked tasking of Blacksky’s constellation. Intelligence Online reports the DOD and Israeli military is reserving all tasking and Blacksky satellite imaging in the region is unavailable to third-parties. Same also for Maxar imagery.
Intelligence Online contrasted Blacksky with Planet Labs. While Blacksky is commercially fully booked in Lebanon and Gaza, Planet Labs imagery remains available. No additional information was provided. Intelligence Online concluded that, “[Planet Lab’s] images play only a minor role for US and Israeli defense agencies.” One explanation may lie in 3 meter resolution Dove satellites comprising 90% of Planet’s constellation. Imagery Planet Labs has released related to the Gaza War appears to be from Doves (recent example here). Defense agencies may desire higher resolution imagery explaining why Planet’s imagery remains unsold.
Planet Labs does not appear to be the only imagery company missing out on sales. We checked Ayta ash Shab, site of prior Israeli military engagements in Lebanon. Here, as of the date of this article, tasking remains available from Korean and Chinese satellites. Specifically imagery from two Satrec Initiative (KOSDAQ: 099320) satellites, and two Beijing-3 Constellation satellites (BJ3A and BJ3B) was available. Sadly for Satrec, their satellites when passing over one the currently most imaged regions of the world … appear to go untasked. Interestingly for Satrec shareholders, Chinese satellites offer equal and better resolution than Satrec in Lebanon at approximately 40% lower cost. High pricing may partially explain why Satrec’s imagery sale business growth is lagging. However, at least for military sales, Western governments likely make minimal to zero purchases from Chinese satellites.
This all bodes well for Blacksky stock holders. Now multiple fronts appear opening it the war, Blacksky may benefit from increased revenue in the region. Imagery revenue in 2Q 2024 actually slipped versus Q1. Watch to see if Blacksky rebounds in Q3.