L&T Obtains Contract from Middle East for the Hydrocarbon Offshore Sector
Larsen & Toubro Ltd. obtained a significant contract from a customer in the Middle East for the hydrocarbon offshore sector.
The 'ultra-mega' classification refers to projects valued over Rs 15,000 crore. The order involves several offshore packages, and the scope entails engineering, procurement, construction, and installation of offshore structures, as well as the enhancement of current facilities.
The contract was secured by L&T Energy Hydrocarbon Offshore Ltd., a subsidiary. The unit is a top supplier of engineering, procurement, construction, installation, and commissioning (EPCIC) services in the offshore oil and gas industry.
L&T stated that, supported by strong internal engineering expertise, advanced fabrication facilities, and a committed fleet of marine vessels, it has a solid history in the development of both shallow and deep-water fields.
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The business sector has previously engaged in intricate projects involving fixed platforms, subsea pipelines and structures, brownfield enhancements, and decommissioning. L&T is a key participant in the construction and engineering sector of the Middle East, which plays an important role in its income.
Analysts' consensus estimates compiled by Bloomberg suggest the company is expected to achieve a net profit of Rs 3,400 crore and revenue of Rs 62,814 crore for the quarter that concluded in June.
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The earnings before interest, taxes, depreciation, and amortisation, or operating income, are estimated to be Rs 6,342 crore with a 10.1 percent margin. L&T shares were up 0.9 percent at Rs 3,453 on the NSE by 11:30 p.m., while the benchmark Nifty 50 saw a 0.1 percent increase.