Larsen &Toubro expects pick up in oil sector orders in 2 years
With global oil prices stabilising, L&T Hydrocarbon Engineering expects orders from international and domestic players to improve in the next two years.
Also, the wholly-owned subsidiary of engineering giant Larsen & Toubro (L&T) expects international markets to contribute nearly 60 per cent of its orders in the next two years.
L&T Hydrocarbon Engineering provides services to offshore and onshore hydrocarbon projects.
"The markets, both domestic and international, are stabilising and we expect them to improve over the period. The oil prices are stabilising so we expect the orders from the international market to pick up," L&T Hydrocarbon Engineering CEO and Managing Director Subramanian Sarma told PTI.
At the same time, the government's expenditure is also improving in the oil and gas sector especially on the back of the Make In India initiative and other programmes.
"We expect most of the investments in the domestic market to come from the state and central governments depending on the ability to spend. Both put together, we hope that 2017 and 2018 will be good years for a company like us which is present in international and domestic markets," he said.
Sarma explained that in India there are a few private players in the sector. "So as such we have a part of share in terms of construction or supply of things. Thus maximum investments come from the state government or central depending on the ability to spend," he said.
The company caters to the needs of its client base in multiple geographies India, the Middle East, Asia-Pacific, Africa, the Americas and Europe.
When asked about the listing plans of the company, Sarma said, "It will take at least another year and a half to come to a position to go for listing. We want to stabilise in the business and only then we will go public."