Company Update (NYSE:GE): General Electric Company Announces Over $660 Million in Orders Across Energy Ecosystem


General Electric Company (NYSE:GE) announced more than $660 million in orders for GE Power, showcasing the company’s leadership in providing customers with more efficient, reliable and digital solutions across the energy ecosystem. Announced in conjunction with this year’s Power-Gen International conference (PGI) in Orlando, the orders include a new F-class gas turbine project in Wisconsin and continued customer adoption of GE’s Operations Optimization and Asset Performance Management suites of digital solutions.

“We’ve taken our products and services to a brand new level, and our expanded portfolio of power plant solutions and innovative digital capabilities are changing the way power is delivered around the world,” said Joe Mastrangelo, president and CEO of GE Power’s Gas Power Systems. “Today’s announcements continue to drive this transformation and will help deliver more efficient, reliable and flexible power across the energy ecosystem.”

Today’s announcements include more than $450 million in orders from GE’s Power Services business, providing customers with other OEM service capabilities and enhanced upgrades. Globally, GE also continues to see growth with continued commitments for higher-efficiency combined cycle power plant technologies and digital solutions using Predix*.

Orders include:

  • An order for two GE 7F.05 gas turbines and one GE D600 steam turbine with the EPC responsible for building and commissioning the expansion of Alliant Energy’s Riverside Energy Center in Beloit, Wisconsin. With a generating capability of more than 700 MW, the expansion will generate the equivalent power needed to supply more than 535,000 U.S. homes. The 7F.05 gas turbine’s superior flexibility makes it a great fit to compliment the increase of renewable sources in the region. GE will also provide a 20-year contractual services agreement for the project.
  • A 14-year agreement with Dynegy to increase output and efficiency at several plants through hardware and software upgrades, including GE’s Predix based Asset Performance Management (APM) suite.
  • A $35 million turbine generator equipment and technical support order for Grand River Dam Authority’s Grand River Energy Center in Oklahoma. In July, the Center suffered a severe lightning strike, which initiated a fire causing catastrophic damage to the 520 megawatt (MW) Unit 2 turbine generator. GE’s Power Services will restore the turbine generator to service using GE’s repair centers around the world, illustrating the Company’s global capabilities.
  • Multiple Heat Recovery Steam Generator (HRSG) orders with U.S. customers worth more than $20 million. These include unit agreements with Dynegy and Oglethorpe Power for performance upgrades and enhanced analytics.

Also at PGI, GE Oil & Gas launched its latest NovaLT12 gas turbines for cogeneration applications (CHP). The NovaLT12 leverages the success of GE’s NovaLT gas turbines program overall, designed to meet residential, industrial, commercial customers’ needs with a reliable and efficient plug and play solution below 20 MW. With an efficiency of up to 85 percent in CHP, these gas turbines represent an advanced solution to produce heat and power, and they can increase industrial plant efficiency while reducing NOx and CO2 emissions. (Original Source)

Shares of General Electric closed yesterday at $31.86, up $0.08 or 0.25%. GE has a 1-year high of $33 and a 1-year low of $27.10. The stock’s 50-day moving average is $30.29 and its 200-day moving average is $30.56.

On the ratings front, GE stock has been the subject of a number of recent research reports. In a report issued on November 22, William Blair analyst Nicholas Heymann reiterated a Buy rating on GE, with a price target of $35, which represents a potential upside of 10% from where the stock is currently trading. Separately, on November 15, Merrill Lynch’s Andrew Obin reiterated a Buy rating on the stock and has a price target of $37.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicholas Heymann and Andrew Obin have a yearly average return of 3.8% and 8.8% respectively. Heymann has a success rate of 64% and is ranked #1667 out of 4269 analysts, while Obin has a success rate of 70% and is ranked #675.

Overall, one research analyst has rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $35.25 which is 10.6% above where the stock closed yesterday.