L&T moves to calm nerves after report flags possible $8.7 bln Kuwait cancellations

Larsen & Toubro (L&T) on Tuesday clarified oil project tenders in Kuwait that are reportedly facing possible cancellation were not part of its order book, seeking to reassure investors after its shares fell sharply on the report.

In a clarification to stock exchanges, L&T said the projects referred to in media reports were not included in the company’s order book and that it could not comment on the status of tenders or the commercial decisions of its clients. “The company can’t comment on the status of tenders or commercial decisions of its clients,” L&T said.

Also Read: L&T shares drop 3% after reports flag potential cancellation of Kuwait oil projects


Shares of L&T fell as much as 3% during the session to an intraday low of Rs 3,885.50 on the BSE, before paring some losses, after a report by Middle East Economic Digest (MEED) said Kuwait was discussing the cancellation of oil project tenders worth about $8.7 billion.

The MEED report said the potential cancellations could affect multiple large-scale oil and gas projects in Kuwait amid a review of capital spending and project timelines.

According to MEED, the review was triggered after bids for multiple contracts came in well above the allocated budget, raising concerns over cost efficiency and fiscal impact. L&T had emerged as the lowest bidder for tenders valued at over $4.5 billion.

The sell-off in L&T shares reflected investor concerns over the company’s exposure to large overseas hydrocarbon projects, even though the engineering and construction major has a diversified order book spanning infrastructure, power, defence and heavy engineering.