In a strategic efficiency enhancement initiative that will boost Egypt’s power generation capacity with no extra fuel consumption, General Electric Company (NYSE:GE) is providing its advanced D200 steam turbines to upgrade the West Damietta and Assiut Power Plants to generate an additional 750 MW through combined-cycle operation. This will take the total capacity of the two plants from 1.5 GW to 2.25 GW, further contributing to helping meet the increasing demand for power in the country.
Dr. Mohammed Shaker, Minister of Electricity of Egypt, said: “The shift from single-cycle to combined-cycle operation at the West Damietta and Assiut Power Plants is a key part of our strategy to enhance operational efficiency and strengthen generation capacity. Both power plants already help meet peak summer demand as part of our Power Boost Program and now the planned upgrade will help enable the power plants to be even more efficient, sustainable and productive.”
West Damietta and Assiut Power Plants are part of the mega-deals signed by GE earlier this year as part of its commitment to the country to strengthen energy sector efficiency and boost power production. At the Egypt Economic Development Conference, GE had announced its support to the ‘Egypt Power Boost Program,’ by helping generate the 2.6 GW of electricity, the amount equivalent to the power needed for approximately 2.5 million Egyptian homes.
Mohammed Mohaisen, President & CEO, GE Power Generation Products Middle East and North Africa, said: “The enhancement of the West Damietta and Assiut Power Plants underlines the focus of the Egyptian Ministry of Electricity to implement energy efficiency measures that add to the power capacity and help meet growing demand for power for household and industrial use. We are committed to supporting the Ministry in fulfilling the Egypt Power Boost Program through such advanced technologies and by drawing on our proven expertise. With the two plants already in operation, we will work with the teams to install the steam turbines for a seamless upgrade.”
GE will provide three D200 steam turbines, which will use the waste heat from the gas turbines to generate extra power. West Damietta has four GE 9E gas turbines that generate 500 MW, while the Assiut plant has eight 9E turbines that generate 1 GW. Both plants already contribute to the national grid, as committed to help meet the peak summer demand.
Sofiane Ben Tounes, GE’s President and CEO for North East Africa, said: “With Egypt focused on ambitious economic development programs, helping meet the growing demand for power is imperative to strengthen its all-round competitiveness. The upgrade of the two power plants builds on our commitment to the nation to serve as a technology partner by providing efficient technologies for boosting the energy sector.”
GE’s advanced gas turbines already help generate more than 11.68 GW of electricity. The company is also investing in a new US$200 million multimodal manufacturing, engineering, services and training center in Egypt which will focus on various industries including power generation, renewables, water, oil & gas, aviation and rail transportation.
With 40 years of presence and partnerships in the country with headquarters in Cairo, GE has over 400 employees in Egypt. In other key growth sectors, over 12,600 GE Healthcare technologies are deployed in hospitals across the country. (Original Source)
Shares of General Electric closed yesterday at $26.26. GE has a 1-year high of $28.68 and a 1-year low of $23.41. The stock’s 50-day moving average is $26.76 and its 200-day moving average is $25.90.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on July 20, UBS analyst Shannon O’Callaghan reiterated a Buy rating on GE, with a price target of $32, which represents a potential upside of 21.9% from where the stock is currently trading. Separately, on June 26, William Blair’s Nicholas Heymann reiterated a Hold rating on the stock and has a price target of $30.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Shannon O’Callaghan and Nicholas Heymann have a total average return of 17.0% and 1.0% respectively. O’Callaghan has a success rate of 79.5% and is ranked #153 out of 3718 analysts, while Heymann has a success rate of 33.3% and is ranked #2436.
The street is mostly Bullish on GE stock. Out of 7 analysts who cover the stock, 4 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $33.00, which implies an upside of 25.7% from current levels.