ESCO Technologies Inc.
) 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
ESCO currently carries a Zacks Rank #2 (Buy). Some other stocks
that can be considered at present include
AO Smith Corp.
Quanta Services, Inc.
). 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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