Kalpataru Projects gets Letter of Intent from Saudi Aramco for three packages in Master Gas System
Kalpataru Projects International Limited (KPIL), formerly Kalpataru Power Transmission Limited has said that it has received a Letter of Intent (LoI) from Saudi Arabia’s energy major Aramco for carrying out EPC work for three packages of the third expansion phase of the Master Gas System Network (MGS-3) in Saudi Arabia. The EPC scope covers the laying of over 800 kms of lateral gas pipeline. The exact contract value of the three packages will be confirmed upon contract execution.
Kalpataru Projects and L&T had emerged as the lowest bidder for the MGS project, news reports said. Kalpataru, according to the report, was the lowest bidder for three packages.
The $10-billion Master Gas System is operated by Aramco and is one of the world’s largest hydrocarbon networks. The Phase 3 project aims to convert a number of power plants from oil to natural gas, contributing to the country’s drive towards a cleaner energy mix and its net-zero emission goal. The MGS-3 aims to expand the existing gas network in order to provide gas supply to various industrial consumers in the region. This expansion of the gas network is expected to enhance the ability to meet the growing energy demand in Saudi Arabia.
With roughly two decades of experience in cross-country pipelines, processing facilities, refineries and fertiliser plants, KPIL has successfully commissioned over 10,000 kms of oil and gas and water pipelines and embraces best global practices in areas like project management, quality and health safety environment (HSE).
“This is a sizeable EPC order, representing a significant milestone and reaffirmation of global acknowledgement of our capabilities,” said Manish Mohnot, the company’s MD & CEO. “Moreover, this large order will strengthen our order book profile and put our oil & gas business on a robust growth trajectory going forward,” he added.
The KPIL is one of the largest specialised EPC companies engaged in Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility (Flyovers & Metro Rail), Highways and Airports.
Kalpataru Projects International (KPIL) reported over 32 per cent jump in its consolidated net profit to Rs 144 crore in the Q3 of FY24 compared to a year ago mainly on the back of higher revenues.
Its profit stood at Rs 109 crore in the quarter ended on December 31, 2022, a regulatory filing showed.
Total income increased to Rs 4,910 crore in the December quarter from Rs 4,006 crore in the same period a year ago.
The board in its meeting on Wednesday, approved the proposal for issuance of secured/unsecured redeemable Non-Convertible Debentures up to Rs 300 crore by the company in one or more tranches.
The company said in a separate statement that it received new orders of Rs 380 crores in Q4 FY24 till date and YTD (Year to Date) FY24 order inflows stand at Rs 18,065 crore.
The order book at Rs 51,753 crore as on December 31, 2023, an increase of 25 per cent YoY (Year on Year).
On Tuesday, shares of Kalpataru Projects International were trading at Rs 1,007.85, up by 0.90%.
