) entered into a long-term Preventive Service agreement with
China LNG Shipping International Co. Ltd. As per the terms of the
agreement, ABB will provide maintenance services to all ABB
equipment that are on board the vessels of LNG Shipping. The
scope of the agreement includes maintenance of the power
generation plant and the entire mechanical as well as electrical
system on board.
Long-term service contracts help improve fleet reliability
thereby saving lifecycle costs for a company. This is because
such agreements facilitate optimized utilization of the vessel at
the lowest maintenance cost possible. The current agreement is
for six vessels owned by the Chinese shipping company over the
next five years. The contract is effective from Jan 1, 2013.
As per the terms of the agreement, ABB will not only provide
complete annual site survey and on-call services for the six
vessels but will also provide the shipping company with dry dock
service once in two and a half years. Dry docking of vessels is a
very important aspect of sea fleet maintenance for shipping
companies. Shipping companies during the off-season send their
fleet out of operation for complete maintenance and overhauling.
Dry docking ensures maximum non-stop services during the
ABB is a leader in power and automation technologies that
enable utility and industry customers to improve performance
while lowering the environmental impact. The growing global
investment in power distribution, both in mature and the emerging
markets, is expected to drive momentum for ABB, going forward.
Recently, the company has been making strategic acquisitions to
further strengthen its position in various emerging areas of the
power industry. In the last reported quarter (1Q13), Power
Systems revenue was $2.0 billion, up 15% in terms of local
ABB currently has a Zacks Rank #3 (Hold). However, some other
companies operating in the same industry and worth considering at
the moment are
Quanta Services Inc
Willdan Group Inc
Harris & Harris Group Inc
), all having a Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis
HARRIS & HARRIS (TINY): Get Free Report
WILLDAN GROUP (WLDN): Get Free Report
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