Back to top

Analyst Blog

ABB Ltd. (ABB - Analyst Report) announced last week that it won a marine contract worth $23 million in third quarter. ABB will provide waste heat recovery systems, each powered by a power turbine generator (PTG), for 14 new container vessels. Following the news, the shares of ABB rose 0.4% on Nov 18.

Installing the waste heat recovery system will increase the power output of the container vessels by up to 4%. The deployment of waste heat recovery system (WHRS) onboard ships is becoming a viable mean of reducing fuel costs. In marine propulsion plants, more than 50% of the energy from fuel is lost to heat when converted to mechanical work by the main engine.

Therefore, by supporting the ship’s main propulsion plant with a waste heat recovery solution, it is believed that up to 4% of the lost fuel energy can be recovered and converted into electricity. The WHRS system is energy efficient and reduces CO2 emissions in relation to the engine’s mechanical power output.

Per the contract, ABB is required to supply power turbines with control valves, alternators, reduction gears and dynamic compensators. The contract also requires ABB to provide two newest generation turbochargers. The electrical output of the system is 1.65 megawatt (MW).

Of the 14 ships, seven will be built at the Dalian Shipbuilding Industry Co. Ltd., (DSIC), while the other seven vessels will be constructed at New Times Shipbuilding Co. Ltd., for China International Marine Containers Group Co. and Mediterranean Shipping Co. S.A (MSC). These container vessels are expected to be delivered in 2015 and 2016.

ABB has a Zacks Rank #3 (Hold). Other companies in the industry that look promising at the moment include VSE Corp. (VSEC - Snapshot Report), Jacobs Engineering Group Inc. (JEC - Analyst Report) and Quanta Services Inc. (PWR - Analyst Report). VSE Corp has a Zacks Rank #1 (Strong Buy), while Jacobs Engineering and Quanta Services both have a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIM'S P… PPC 31.52 +3.72%
CLAYTON WIL… CWEI 138.97 +3.55%
CALLON PETE… CPE 11.50 +3.14%
ACTELION LT… ALIOF 124.80 +2.97%