Mumbai: Engineering and construction major Larsen & Toubro (L&T) on Monday clarified that the oil project tenders in Kuwait, reportedly under discussion for cancellation, do not form part of the company’s order book, responding to a media report that weighed on its stock.
The clarification follows a report which said Kuwait was considering cancelling oil project tenders worth $8.7 billion, leading to a nearly 3% decline in L&T shares during the session. In a regulatory filing, L&T said the projects referred to in the report were not associated with the company’s existing orders.
“Projects referred to in the said report were not part of the Company’s order book,” L&T said, adding that it cannot comment on the status of tenders or commercial decisions taken by its clients.
L&T has a significant presence in the Middle East, particularly in hydrocarbons, infrastructure and power projects, and investor sentiment around overseas order flows often has a direct bearing on its share price. The company’s clarification is expected to ease concerns about any immediate impact on revenues or execution from potential cancellations in Kuwait.