Shares in Orbital Sciences (US: ORB) fell 15 per cent in pre-market trading on Wednesday after its Antares rocket exploded seconds after lift-off. The unmanned rocket, which was built at a cost of over $200m (£125m), marked the first accident since Nasa turned to private operators to deliver cargo to the International Space Station.
The chief executive of the spacecraft and test missile manufacturer blamed the rocket's decades-old Russian-built engines for the explosion and said plans had already been made to replace them. Furthermore, he added that the company is determined to fulfil its commitment to carry cargo into space for Nasa and denied that the explosion would jeopardise Orbital's proposed $5bn merger with Alliant Techsystems Inc (US: ATK).
Orbital was awarded a $1.9bn contract from Nasa in December 2008 to conduct eight cargo resupply missions to the space station, with this particular occasion marking its third flight. At present it is unclear whether its next mission will go ahead in April as previously scheduled.
While the financial impact of the explosion is not yet known, the company left its 2014 guidance unchanged and revealed that insurance will cover repairs and lost success payments.
