L&T Hydrocarbon Consortium wins orders worth Rs 2450 crores

Indian multinational conglomerate Larsen and Toubro Ltd (L&T) informed stock exchanges on Thursday that its fully owned subsidiary L&T Hydrocarbon Engineering (LTHE) bags an order worth Rs 2450 crores. It bagged an offshore contract from Oil and Natural Gas Corporation (ONGC) in consortium with US based engineering company McDermott. LTHE's share in consortium is Rs 640 crores.

LTHE provides complete EPCI solutions for the offshore Oil & Gas industry combining customised engineering, procurement, fast-track project management, as also world-class fabrication & installation capabilities meeting stringent timelines coupled withh conforming to international safety standards. It has been serving the upstream hydrocarbon sector since the early 1990s.

The contract is for development of ONGC's Vashishta and S1 deep water field situated off the East Coast of India. It encompasses complete EPCI work - engineering, procurement, construction and installation - of major subsea facilities in ONGC’s deepwater fields. The full scope of the contract includes the supply and installation of subsea structures rooted in seabeds, of water depths ranging from 200 metres to 700 metres; and subsea pipelines interconnecting subsea wells to ONGC’s onshore facilities at Odalarevu in Andhra Pradesh.

The project is part of ONGC’s strategy to monetise its deepwater oil & gas fields on the East Coast. Upon final commissioning, the facilities will add about 4.55 MMSCM of hydrocarbon gas per day to India’s domestic gas production. The consortium has developed a cost-effective solution which includes utilisation of LTHE’s strategically located Kattupalli facility in Chennai for fabrication, and setting up of a local spoolbase in India; in addition to  scheduling improvements using a combination of reel-lay and S- lay methods for laying of subsea pipelines by McDermott.

L&T received new orders of Rs 9095 crores in Q3FY16. With this new order the total order book of L&T stands at Rs 255642 crores.

Further, according to media reports L&T is set to get a major share in a Rs 5000 crore deal to upgrade and refit Russian-origin Kilo class submarines. Key factor in choosing L&T was an evaluation of at least three yards that was conducted by Russian shipbuilders.

On the financial front L & T's operating revenue increased by 8.07 per cent to Rs 92004 crores in FY15 from Rs 85128 crores in FY14. The EBITDA margin of the company increased from 17.54 per cent in FY14 to 18.08 per cent in FY15. The net profit stands at Rs 4765 crores in FY15, a decrease of 2.79 per cent from last year. The total debt stood at Rs 24607 crores in FY15 an increase of 20.80 per cent compared to Rs 20370 crores in FY14. The debt burden stood at 52.70 per cent of total assets of company. The stock of the company is hit the 22 month low and trading at Rs 1178 on Friday, a decrease of 2.35 per cent from the previous close.