GOMBAK: Helicopter operator Weststar Group, owned by billionaire Tan Sri Syed Azman Syed Ibrahim, reassures that its new RM2bil financing is not a response to the Middle East tensions and the surging crude oil prices.
The group, however, said it is in need of funds to double the size of its helicopter fleet and strengthen operational capabilities.
Syed Azman, who is also the group managing director, also highlighted Weststar’s prudent decision to exit operations before the Middle East conflict escalated.
“We were operating in Saudi Arabia for around four years and anticipated the instability. So, we decided to exit.”
AmBank Group, through AmBank Islamic Bhd, has granted RM2bil syndicated financing to Weststar Aviation Services Sdn Bhd, the aviation arm of Weststar group.
This was announced in a signing ceremony yesterday.
AmInvestment Bank Bhd is the lead coordinator and one of the joint mandated lead arrangers, while AmBank Islamic Bhd is one of the financiers.
Syed Azman said the rising crude oil price does not have major impact on Weststar’s operational costs.
“The rise in oil prices does not significantly affect us.
“For instance, for the essential offshore transportation services that we provide, the fuel costs incurred are typically absorbed by the oil companies themselves.”
Syed Azman also noted that the RM2bil financing was planned since last year to support ongoing contracts, and is therefore not a response to the current crisis.
“From our perspective, the financing serves two key purposes.
“First, it enables us to accelerate our fleet expansion, with plans to grow from 32 helicopters currently to over 60 within the next two years.
“Second, it strengthens our operational capabilities, reinforcing our position as a global market leader.
“With this in mind, we are also looking to broaden our presence across different sub-segments, moving beyond offshore services into areas such as government operations and maintenance, repair and overhaul.
“This outlines our pipeline over the next three to five years,” he told reporters.
Weststar’s management also clarified its stance on potential opportunities amid the crisis escalation.
“The instability has led to some fluctuations in certain regions.
“While we do not welcome the situation, increased oil and gas activity generally drives demand in areas more relevant to us, such as drilling and exploration.
“Higher activity naturally requires support by sea or land, which we expect will create additional opportunities for our offshore transportation services,” Syed Azman added.
On the group’s current initiatives, Weststar acknowledged that it is still building a presence in the oil and gas sector.
“For the oil and gas sector, we are new.
“Meanwhile, for the past 15 years, we have operated in Malaysia, Indonesia, Thailand, Saudi Arabia, and one country in Africa, with a strong presence in Africa.
“Locally, we also operate VIP charter services.
“Nevertheless, looking at our three to five-year plan, we hope to further expand our footprint and service offerings,” the group said.
Jamie Ling, group chief executive officer of AmBank, noted in a statement that: “Weststar’s expanded capabilities will support commercial oil and gas operations vital to Malaysia’s energy security and enhance defence and emergency response readiness.”
