L&T's Share Price Shoots Up On Reports Of $4B Orders From Saudi Aramco

Shares of Larsen & Toubro (L&T) were on the rise on Tuesday amid reports that India’s largest infrastructure company has clinched massive orders from global oil and gas major Saudi Aramco

What Happened: The orders from Saudi Aramco to expand its gas projects are worth over $4 billion (₹33,394 crore), media publication Meed reported.

The order from the state-owned petroleum giant reportedly covers gas compression systems, tied to Aramco’s ambitious $110 billion (₹9.18 lakh crore) Jafurah gas project in Saudi Arabia’s eastern province.

Part of Aramco’s $25 billion (₹2.08 lakh crore) in engineering, procurement, and construction (EPC) contracts, these orders were said to have been announced on June 30 for two major gas expansion programs.

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Double Whammy: Reports indicate that L&T secured two key packages from Aramco: the first being worth $2.9 billion (₹24,210 crore) for a gas processing plant and main process units, and the second valued at $1 billion (₹8,348 crore) for gas compression units. Both orders will be handled by L&T’s energy hydrocarbon division, the publication reported.

Other winners in the Jafurah expansion include South Korea’s Hyundai Engineering with a $2.4 billion (₹20,038 crore) contract and Spain’s Tecnicas Reunidas with two contracts totalling $3.2 billion (₹26,717 crore).

Last September, L&T secured two EPC orders worth nearly $4 billion (₹33,394 crore) from Saudi Aramco as part of the Jafurah gas project expansion.

Price Action: L&T’s share price was up 2.51% at ₹3,615.05 in afternoon trade on Tuesday. The stock has risen only 2.54% so far this year.

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