It seems to be a great time for ABB Ltd. (ABB - Analyst Report) as the company scored yet another deal win. Close on the heels of winning contracts in China, Iraq, Saudi Arabia and Norway, the power and automation technology company has now secured a $27-million order from Statoil for the upgradation of safety and automation systems at the key Heimdal platform in North Sea, off the Norway coast. The contract with Statoil was signed during the second quarter of 2013. However, the financial details of the transaction were not disclosed.
This is ABB’s second deal win this very month in Norway. Last week, ABB received an order from the Norwegian Transmission System Operator, Statnett SF, wherein ABB will be responsible for the construction of two 420 kilovolts (kV) transmission substations.
According to the current agreement, ABB will be required to upgrade certain parts of the safety and automation systems in order to make the Heimdal platform safer and at the same time more profitable. ABB is responsible for the complete engineering, procurement, construction and installation. Post the upgradation, the Heimdal platform will comprise ABB’s modern 800xA Extended Automation platform, which will be the main control system and will be completely tailored to comply with Statoil's guidelines for workstations layout and design of process graphic.
Heimdal platform is an offshore natural gas field in the central North Sea. It gets gas from the Huldra, Oseberg, Skirne and Vale fields and exports it via Vesterled or Statpipe pipelines for processing. When operating at its full capacity, the amount of processed gas in Heimdal contributes 15% to 20% of Norway’s total gas production.
ABB Ltd. has a Zacks Rank #3 (Hold). Some other players in the same industry, which can be considered for buying are Chicago Bridge & Iron (CBI - Analyst Report) and Dycom Industries (DY - Analyst Report), both carrying a Zacks Rank #1 (Strong Buy). Another peer, Emcor Group Inc. (EME - Analyst Report) is also a good pick and it carries a Zacks Rank #2 (Buy).