On February 19, Larsen & Toubro (L&T) shares experienced a decline following reports that Saudi Aramco had postponed the bid process for $10 billion worth of orders related to Safaniyah oilfield projects.
By 10:50 hours on Monday, L&T’s stock on the BSE was trading 1 percent lower at Rs 3,352. The decline was attributed to speculation that L&T was competing to secure a significant EPC order for the Safaniyah oilfield.
According to CNBC-TV18 reports, the delay in the Safaniyah expansion was linked to a Saudi directive to limit production. Approximately 10 EPCI deals involving the expansion of Aramco’s Safaniyah oilfield were reportedly cancelled. EPCI refers to engineering, procurement, construction, and installation.
During the quarter ended December 31, 2023, L&T secured orders worth Rs 75,990 crore at the group level, reflecting a 25 percent year-on-year growth. International orders accounted for Rs 50,562 crore, comprising 67 percent of the total order inflow during the quarter.
Larsen & Toubro, a $23-billion Indian multinational, specializes in engineering, procurement, and construction (EPC) projects, as well as high-tech manufacturing and services. The company operates in more than 50 countries.
