KUALA LUMPUR (Oct 3): Kuala Lumpur Kepong Bhd (KLK) said its wholly‑owned Indonesian unit, PT Perindustrian Sawit Synergi (PT PSS), has received the arbitral award in a dispute involving the termination of a gas supply agreement.
KLK did not disclose the terms of the arbitral award in its bourse filing on Friday, but said the award is not expected to have any material impact on the group’s earnings, net assets or gearing for the financial year ended Sept 30, 2026.
"The arbitral award reflects a consensual commercial resolution of the dispute and does not constitute any admission of liability, fault or wrongdoing by either party, nor any determination on the merits of the respective claim and counterclaim," the group added.
The arbitration against PT PSS was commenced by PT Pertagas Niaga (PT GN) at Badan Arbitrase Nasional Indonesia (BANI) in July.
PT GN had sought about US$39 million (RM158.73 million) under a ‘take‑or‑pay’ clause, claiming payment for the remaining contract period even if PT PSS did not take the agreed supply.
KLK, in its filing, said that while the arbitration proceeding was ongoing, PT PSS and PT GN concurrently engaged in mediation process to explore an amicable resolution of the dispute.
"Following the mediation, the parties have agreed to resolve the dispute amicably on mutually acceptable terms," it added.
KLK’s share price closed down 42 sen or 1.96% to RM21 on Friday, giving the group a market capitalisation of RM23.4 billion.