L&T Hydrocarbon planning stock market listing in 3 years

Hopes to more than double annual revenue in next five years

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L&T Hydrocarbon Engineering, subsidiary of Larsen & Toubro, plans to list itself on the stock exchange in the next three years.

The company is an integrated oil and gas services provider, with a focus on construction and engineering.

Subramanian Sarma, managing director, said in addition to the 2019 target year for listing, another aim was to raise annual revenue from the present Rs 9,000 crore to Rs 20,000 crore in another five years.

It hopes to close the current financial year with 10 per cent growth and to increase the margin to around eight per cent, from the earlier 7.1 per cent.

The international business contributes to around 50 per cent and the company hopes to increase this to 60 per cent. It plans to look at North Africa and some of the Asia-Pacific markets. it is currently focused on West Asia.

On Friday, it unveiled a high-tech spool base facility at Kattupalli, near here. These are being employed on a turnkey contract from Oil and Natural Gas Corporation (ONGC) for a subsea installation, by a consortium of J Ray McDermott SA, Berlian McDermott & L&T Hydrocarbon Engineering. L&T has 25 per cent stake in the consortium, with the balance held by McDermott. It is a $370 million order.

Sarma said it was the first time that the high-end technology required for deepwater operations was being transferred in India, through McDermott.

T K Sengupta, director-offshore at ONGC, said the aim was to commence production by mid-2017 and achieve the full capacity of two billion cubic metres a year by end-2017. This 91 km of pipeline laying from the onshore terminal to the offshore deepwater field involves 55 km of shallow water lay and 36 km of deepwater lay. The installation has to ensure an operating life of 25 years in a harsh marine environment. A project of this magnitude is being done in deepwater for the first time in India, said Sengupta.