Following the crash involving the Super Puma helicopter chartered out to Exxon Mobil Exploration and Production Malaysia Inc (EMEPMI) last Sunday, 5 November 2006, the remaining three MHS Aviation Berhad’s (MHSA) Super Puma helicopters used for EMEPMI’s operations have been grounded, pending investigation. This was the second incident involving MHSA’s Super Puma helicopters used in oil rig operations since 2005. The earlier incident in April 2005 was due to aircraft mechanical failure and did not involve any fatality.

MHSA is presently the leading provider of helicopter services to major oil and gas players in the country. Operating from its four bases; Kertih, Kota Bharu, Miri and Labuan, with a fleet size of more than 26 aircrafts, the company serves the requirement of a number of oil majors such as EMEPMI, PETRONAS Carigali Sdn Bhd, Sarawak Shell Berhad, Murphy Sarawak Oil Company Ltd, Talisman Malaysia Limited and Carigali-Hess Operating Company Sdn Bhd. MHSA posted a pre-tax profit of RM2.6 million on the back of RM229.0 million revenue for FY2005.

MARC will review the impact of the incident on MHSA’s operations and financial performance. Any rating implications will be disseminated in due course. Meanwhile, the rating of MHSA’s RM140 million Junior Notes is placed on MARCWatch with developing outlook.