) received an $80 million order from the Samsung Heavy Industries
for supplying energy-efficient, reliable electrical systems for
five drill ships and two liquefied natural gas carriers to be built
by Samsung at its shipyard in Korea. The function of these vessels
will be to extract, process and transport oil and gas.
Samsung Heavy Industries, a branch of the Samsung's South-Korean
holding that primarily focuses on manufacturing a wide range of
large vessel types including LNG carriers, drill ships and
semi-submersible drilling rigs.
Of the five drill ships to be built in the project, three are
for Seadrill Ltd. in Norway, one for Pacific Drilling S.A in Brazil
and one for Ensco plc in the UK. The two LNG carrier vessels are to
be built for Golar LNG Ltd in the UK. The supplies from ABB will
enhance the energy efficiency of the ships. Further, the
reliability of power supply will increase, which in turn, will
improve the use of onboard equipment. Commissioning of the project
will be done between 2014 and 2015.
ABB has long been engaged in development of technologies to
facilitate oil and gas exploration, extraction and transportation
from deep sea and other new sources and has gained expertise in it.
The company is also an expert in marine application.
Moving ahead, ABB expects the emerging markets to be a
significant growth driver, however demand in mature markets is also
expected to improve. Customer capital expenditures have increased
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 increased its prices to offset rising raw material
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. A major competitor of ABB Ltd. is
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
Currently, we maintain a Zacks #3 Rank (short-term Hold
recommendation) on ABB Ltd.
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