ABB Ltd. (ABB) received several orders for equipment from Samsung Heavy Industries, Hyundai Heavy Industries, Keppel FELS and Jurong Shipyard Pte Ltd., for a total value of $200 million. The company will be supplying 23 new Jack-Up and DP drilling vessels and one FPSO will be executed in South-Korea and Singapore as the per the orders booked during the second quarter of 2011.
The vessels will be used in oil and gas extraction, production and transportation. These vessels include semi-submersible drilling rigs, drill ships, mobile oil and gas platforms as well as floating production, storage and offloading vessels.
Equipments from ABB will increase the energy efficiency of ships and will also provide a dependable power supply to improve the utilization of onboard equipment. The scope of supply includes complete Supplies from ABB along with electrical systems and related equipment such as generators, distribution switchboards, and transformers. Further, drives and motors to power the ships’ thrusters and drilling systems will also be provided by ABB.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world's resources. The company has a number of technologies for the solar power industry with a growing installed base. ABB Ltd. has witnessed improving signs in late-cycle power, with some recent large contracts.
However, ABB's results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company's orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
ABB Ltd. is a Zurich (Switzerland) based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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