KNM subsidiary faces PETRONAS license compliance issue


PETALING JAYA: Practice Note 17 (PN17) company KNM Group Bhd’s wholly-owned subsidiary KNM Process Systems Sdn Bhd (KNMPS) remains classified as non-compliant under Petroliam Nasional Bhd’s (PETRONAS) licensing requirements due to a qualified auditor’s report in its 2024 financial statements.

In a filing with Bursa Malaysia, KNM said PETRONAS, via an email on Oct 13, informed KNMPS that its appeal against the licensing non-compliance could not be resolved until its external auditors, Messrs KPMG PLT, issue an unqualified audit report.

KNM said the regularisation process is not expected to be completed in the current financial year, adding that the matter will be revisited during the audit for the financial year ending Dec 31, 2026.

Despite the status, KNM noted that KNMPS remains eligible to participate in PETRONAS-related projects as a subcontractor.

“Majority of KNMPS’ existing and ongoing PETRONAS-related projects, including the RAPID project and other smaller projects such as the skid fabrication works at the Gebeng plant, are carried out in this capacity.”

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