Doble Awarded Contract by NGRID SA, ESCO to Gain - Analyst Blog


ESCO Technologies Inc. ( ESE ) recently announced that Doble Engineering Company was conferred with a utility services contract by National Grid Saudi Arabia (NGRID SA) for augmenting the reliability of its electric grid. ESCO being an approved National Grid provider is expected to benefit from this deal.

NGRID SA, the forefront developer of power grids in the Middle East, has been taking initiatives to enhance its electrical grid for expanding its quality and capacity. The government of Saudi Arabia has extended its support by investing in the water and electricity infrastructure developments in 2014.

One of the most important components of the grid is transformers, in which Doble possesses significant expertise. Doble will be making condition-based assessments of 1,000 transmission transformers along with NGRID SA. These transformers are part of NGRID SA's service area.

This deal will enable NGRID SA to evaluate and improve its testing and maintenance work by improving its root cause analyses of historical failures. This apart, Doble will also be providing a comprehensive assessment of NGRID SA's in-house electrical insulating oil laboratories.

This initiative will be crucial for NGRID SA as its grid performance is expected to improve significantly if the problems are detected and managed sooner. The company will be able to deploy a predictive-based maintenance methodology.  Moreover, NGRID SA will be able to optimize its internal resource allocation by using some time-based practices. This deal is crucial for the region and it will allow NGRID SA to meet the rising demand for electricity.

ESCO currently carries a Zacks Rank #2 (Buy). Some other stocks that can be considered at present include EnerSys ( ENS ), AO Smith Corp. ( AOS ) and Quanta Services, Inc. ( PWR ). While EnerSys and AO Smith Corp. sports a Zacks Rank #1 (Strong Buy), Quanta Services has the same Zacks Rank as ESCO.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AOS , ESE , PWR , ENS

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