Shares of Larsen & Toubro opened about 1% higher on September 7 after reports that the Indian infrastructure company is likely to win $2.9 billion worth of orders ( approximately Rs 24,000 crore) from Saudi Aramco’s unique onshore gas development project Jafurah.
Saudi Aramco has planned the $110 billion Jafurah gas project in the Eastern province. A report by CNBC-TV18 said L&T was the preferred bidder for the $2.9 billion contract.
The company classifies projects worth Rs 1,000 to Rs 2,500 crore as large orders, while those between Rs 2,500 and 5,000 crore are classified as “large”.
According to the report, L&T will develop a gas treatment plant and main treatment units for the project. However, the company has yet to respond to questions from CNBC-TV18.
As of 9:19 a.m., L&T shares were trading up 0.5% at Rs 2,743 on the National Stock Exchange. In addition, L&T also recently submitted bids for another series of orders worth $10 billion for the Saudi Aramco Safaniyah gas field.
In August, the construction giant also received a large order from Australian company Saipem & Clough JV to manufacture and supply pipeline and process modules for the 2.3 MMTPA urea plant for Perdaman Chemicals and Fertilizers.
Larsen & Toubro’s power, transmission and distribution sector also secured new orders in the Middle East last month. At the end of FY23, L&T’s backlog stood at Rs 399,526 crore, reflecting an increase of nearly 12% year-on-year.
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