L&T's hydrocarbon business bags 'significant' orders

Larsen & Toubro (L&T) said that its hydrocarbon business L&T Energy Hydrocarbon (LTEH) has secured two 'significant' orders for its asset management and AdVENT business verticals.

Organized under offshore, onshore, construction services, modular fabrication, asset management and advanced value engineering & technology (AdVENT) verticals, LTEH offers integrated design-to-build solutions across the hydrocarbon sector to domestic and international customers.

Larsen & Toubro Energy Hydrocarbon - Asset Management (LTEH-AM), a new business vertical for operations and maintenance (O&M) and associated services in the global market, has secured its first integrated O&M contract from Vedanta, Cairn Oil & Gas division. This 5-year contract is for integrated O&M of upstream oil & gas processing facility at Raageshwari Gas Terminal and associated Gas Well Pads and South Satellite Fields, located in Rajasthan, India.

Further, the AdVENT business vertical has received an order for engineering, procurement and construction (EPC) of a hydrogen generation unit (HGU) from Matheson Tri Gas, Inc. (Matheson), a subsidiary of Nippon Sanso Holdings Corporation (NSHD).

Matheson's Global HYCO business group secured the order for this HGU from Numaligarh refinery in Assam, on a build - own - operate (BOO) basis for 20 years with Topsoe, Denmark, as the overall process licensor for the unit.

The HGU, with a capacity of 95 KTPA, is an integral part of the Numaligarh Refinery Expansion Project (NREP), to expand current refining capacity from 3 to 9 MMTPA. The EPC work of the project will be executed by L&T, under a stringent timeline of 30 months.

Subramanian Sarma, whole-time director & sr. executive vice president (energy), L&T, said: "These orders reaffirm L&T's execution prowess across the hydrocarbon value chain and leadership as a one-stop solution provider which is translating into growing partnerships with global oil & gas majors.

As per L&T's classification, the value of the said contract lies between Rs 1,000 crore and Rs 2,500 crore.

Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide.

The EPC major's consolidated net profit rose 22.5% to Rs 2,228.97 crore on 23% rise in net sales to Rs 42,762.61 crore in Q2 FY23 over Q2 FY22.

The scrip shed 0.26% to currently trade at Rs 2189.05 on the BSE.

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