Crude meltdown: Welspun Corp says no impact on its current order book

Notwithstanding the sudden meltdown in crude oil prices in the international market, Welspun Corp Ltd on Monday said the company has no impact whatsoever on its current order book which stands at Rs 8,484 crore.

Crude oil prices plunged nearly 30 per cent to USD 32.11 per barrel after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets.

In a regulatory filing the company said that the sudden meltdown in the oil prices in the international market was due to certain geo-political realignment.

"We wish to clarify that the company has no impact whatsoever on its current order book which stands at 1,052 KMT valued at Rs 8,484 crore," the filing noted.

The company further said that, in the USA, all confirmed orders would keep its current capacity occupied till the third quarter of this year and even the potential beyond is also looking fairly robust as the major play for the company continues to be in gas sector.

"As regards the Saudi Arabia, we enjoy a healthy order book of 297KMT valued at Rs 2,066 crore and that will also keep us occupied till third quarter of this year," it said.

Over and above, the company said, it has been short-listed as one the key suppliers by the Saudi Aramco by long-term frame agreement which will bring additional significant gains to its Saudi portfolio.

"As regards India, we enjoy a very healthy order book of 522 KMT valued at Rs 4,166 crore and we are short-listed for major projects in South-East Asia. This put together, reflects a healthy and a consistent growth prospects for the company," it said.

Further, the last three quarter have shown exponential growth, both in terms of volumes and financial performance and the company expect subsequent quarters to be equally robust if not better.

"It is our strong belief that this unanticipated event should be short term. However, we operate in downstream side and since most of the capex is already over by O&G companies till that time, pipeline connectivity becomes more of a necessity than choice," it said.