) has been receiving key orders for its power segment in the
recent past. Over the last 30 days, ABB has received contracts
varying from powering the copper mine in Africa to signing a
joint Industry Program with
). During this period, the stock price has surged about
However, the announcement of a contract win on Sep 19 failed
to cheer investors' sentiment and the shares dropped 1.04% on
Friday, Sep 20. The company announced on Thursday that it has
received an order worth $25 million to provide marine propulsion
system, Azipod, and complete electric power plants for two new
rescue and salvage icebreaker vessels owned by Russia's State
Maritime Rescue Coordination Centre (SMRCC).
These two vessels are currently under construction at Nordic
Yards GmbH in Germany. The SMRCC intends to use these vessels for
patrols and rescue operations in offshore oil & gas fields.
These vessels are specially designed for Arctic conditions and
can perform rescue operations in waters which are covered by up
to one meter thick ice.
The Azipod system is a special feature that allows ships with
a complete 360 degree turn. The Azipod system is believed to be
5% to 6% better and more efficient than the traditional
propulsion system. This is because the propeller is on the front
of the pod and pulls the ship through the water rather than
The scope of the contract requires ABB to supply 3.5 megawatt
(MW) Azipod VI units, main switchboards, drives, bow thrusters
and generators. The total power capacity of the vessel is 7
To date, ABB has invested heavily in Russia in order to shore
up the country's fast-growing offshore oil & gas activities
in the Arctic. ABB has 27 offices in Russia along with five
production sites, including a head office in Moscow. ABB has
established dedicated marine centers in Moscow and St.
Petersburg, supported by specialized marine service teams in
Murmansk and Sakhalin.
ABB has been providing its Azipod propulsion system since 1990
and has so far supplied 60 units globally, out which 30 are for
ice breaker vessels. According to the company, on an average two
out of three high ice-class vessels install Azipod propulsion
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 aid ABB going forward. Recently, the
company has been making strategic acquisitions to further
strengthen its position in various emerging areas of the power
ABB currently has a Zacks Rank #4 (Sell). However, some other
companies operating in the similar industry and worth considering
at the moment are
Plug Power Inc.
AO Smith Corp.
). Both these stocks carry a Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis
PLUG POWER INC (PLUG): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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