ABB Ltd,(ABB - Analyst Report) recently received an order from Initec (Técnicas Reunidas Group) to deliver the electric equipment for a new natural gas processing plant in Gran Chaco, Bolivia. The order is estimated at $8.2 million and was booked in the fourth quarter 2012.
ABB’s e-house is an innovative approach to meet all the electric equipment requirement of industrial plants, particularly the oil and gas sector, given its demanding safety requirements. E-house is a complete integrated system with switchgear, drives, periphery distribution equipment and automation shipped fully functional and ready to go.
Under an E-house, the electrical and control equipment for the industrial plant are placed inside a single pre-fabricated steel building. Each e-house is built as per the specific needs of the plant and is tested before installation. The advantages of e-house are its flexibility to different types of projects, improved safety and shorter construction times.
ABB needs to manufacture the e-house for Yacimientos Petrolíferos Fiscales Bolivianos. The company produces about 27.7 million standard cubic meters of natural gas daily. Initec - a Tecnicas Reunidas Group company - has been appointed by Yacimientos Petrolíferos Fiscales Bolivianos for the construction of its plant, given its expertise in the construction of such large turnkey projects.
Recently, ABB was selected as the main electrical contractor for a new semi-submersible central processing facility at the Ichthys oil and gas field. The scope of the contract primarily includes providing a comprehensive electrical solution for the entire central processing facility.
Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company and currently has a Zacks Rank #3 (Hold). Some other players in the same industry, which can be considered buying at the moment are Franklin Electric (FELE - Snapshot Report) and Chicago Bridge & Iron (CBI - Analyst Report), which have a Zacks Rank #2 (Buy). Another peer, Orion Marine Group (ORN - Snapshot Report) is good pick and has a Zacks Rank #3 (Hold) stock, given the company’s performance and the number of new orders.