) recently won contracts of over $20 million for providing
electrical power and propulsion systems for a couple of advanced
offshore vessels for optimizing their operational flexibility and
The two vessels, designed using ULSTEIN SX165 and Rolls-Royce UT
777, respectively, are state-of-the-art ships for conducting
advanced subsea operations primarily for the offshore oil
The scope of the contracts requires ABB to provide the advanced
complete power and diesel electric system package that includes
core installations like medium voltage generators, switchboards,
transformers apart from frequency converters and motors for both
the vessels. This package will ensure the reliability and fuel
efficiency of the propulsion units for the vehicles.
The first vessel, designed on the lines of ULSTEIN SX165, is
being manufactured by the Ulstein Verft and is scheduled to be
completed by the third quarter of 2015. The mega vessel will be
equipped to handle more than 200 people and nearly 540 tons of
weight. ABB's expertise in providing the propulsion system
especially for a DP class 3 Drill Ship will be of significant use
in this contract. The vessel is being designed for the Island
Ventures 11, a joint venture between Edison Chouest Offshore and
The second vessel for the Island Offshore is being constructed
on the Rolls-Royce UT 777 technology by the Kawasaki Heavy
Industries in Japan and is likely to be delivered by 2017. The
vessel is being designed to meet the requirements of subsea
construction, inspection, maintenance and repair work. Additionally
it will be adept in performing top hole drilling and light well
intervention as well. ABB will also be providing integrated
fire & gas monitoring and control systems for this vessel.
The power distribution and propulsion systems for both the vessels
will be tracked by the company's remote diagnostic system (RDS).
This will enable ABB to monitor the installations efficiently and
cut down on repair time. Hence it will not only optimize the
operational safety but will also lower the requirements for on-site
Prior to this, on May 14, the company received another
propulsion contract from the Finnish Transport Agency (FTA) to
provide power solutions including Azipod propulsion units and an
electric power plant for the Arctech Helsinki Shipyard.
ABB currently has a Zacks Rank #5 (Strong Sell). Some
better-ranked stocks that can be considered at present include
AO Smith Corp.
). All these stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ABB LTD-ADR (ABB): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis
AVT INC (AVTC): Get Free Report
ENERSYS INC (ENS): Free Stock Analysis Report
To read this article on Zacks.com click here.