) has been awarded a contract to extend the export terminal of
) refinery in Taranto. The refinery is located at the "Mar
Grande" bay on the Ionian Sea in southern Italy. The value of the
contract is about $40 million and was booked in the fourth
Eni is trying to enhance the infrastructure of the refinery,
located at the export terminal and build a dependable connection
with the onshore Tempa Rossa oil plant. The contract received by
ABB is a part of this development plan.
Eni plans to extend the existing pipeline, currently connected
to the oil field through an underground pipeline. As per the plan
the new pier will have five loading arms with a transfer capacity
of 3,000 cubic meters per hour.
ABB has a technical expertise in the oil and gas sector and
has successfully worked on a number of projects. In the current
project, the company will provide new electrical systems as well
as the necessary mechanical equipment and automation systems
which will help in the secure mooring of the vessels and the
loading of crude oil. Expected date of completion of the project
is August 2015.
Moving ahead, the emerging markets will be a significant
growth driver for ABB. Demand in mature markets is also expected
to improve. Customer capital expenditures have soared with the
rise in commodity prices. Increased capacity in some later-cycle
infrastructure-related businesses continues to exist. In
many sectors price stability has been attained and ABB has
escalated its prices to offset rising raw material costs.
However, ABB Ltd's results are likely to be adversely impacted
by macroeconomic weakness as more than 80% of the company's
orders are derived from outside the US.
ABB Ltd. currently has a Zacks #3 Rank (Neutral). Its close
rivals such as
Tyco International Inc.
) both have Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
ENI SPA-ADR (E): Free Stock Analysis Report
SIEMENS AG-ADR (SI): Free Stock Analysis
TYCO INTL LTD (TYC): Free Stock Analysis
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