ABB Wins $20M Contract for Offshore Vessels - Analyst Blog

ABB Ltd.ABB recently won contracts of over $20 million for providing electrical power and propulsion systems for a couple of advanced offshore vessels for optimizing their operational flexibility and safety.

The two vessels, designed using ULSTEIN SX165 and Rolls-Royce UT 777, respectively, are state-of-the-art ships for conducting advanced subsea operations primarily for the offshore oil industry.

The scope of the contracts requires ABB to provide the advanced complete power and diesel electric system package that includes core installations like medium voltage generators, switchboards, transformers apart from frequency converters and motors for both the vessels. This package will ensure the reliability and fuel efficiency of the propulsion units for the vehicles.

The first vessel, designed on the lines of ULSTEIN SX165, is being manufactured by the Ulstein Verft and is scheduled to be completed by the third quarter of 2015. The mega vessel will be equipped to handle more than 200 people and nearly 540 tons of weight. ABB's expertise in providing the propulsion system especially for a DP class 3 Drill Ship will be of significant use in this contract. The vessel is being designed for the Island Ventures 11, a joint venture between Edison Chouest Offshore and Island Offshore.

The second vessel for the Island Offshore is being constructed on the Rolls-Royce UT 777 technology by the Kawasaki Heavy Industries in Japan and is likely to be delivered by 2017. The vessel is being designed to meet the requirements of subsea construction, inspection, maintenance and repair work. Additionally it will be adept in performing top hole drilling and light well intervention as well.  ABB will also be providing integrated fire & gas monitoring and control systems for this vessel.

The power distribution and propulsion systems for both the vessels will be tracked by the company's remote diagnostic system (RDS). This will enable ABB to monitor the installations efficiently and cut down on repair time. Hence it will not only optimize the operational safety but will also lower the requirements for on-site maintenance visits.

Prior to this, on May 14, the company received another propulsion contract from the Finnish Transport Agency FTA to provide power solutions including Azipod propulsion units and an electric power plant for the Arctech Helsinki Shipyard.

ABB currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks that can be considered at present include AVT Inc. (AVTC), EnerSys ENS and AO Smith Corp. AOS.  All these stocks carry a Zacks Rank #2 (Buy).