Israel Electric Corporation, Ltd. (IEC), Israel’s main electric utility, and General Electric Company’s (NYSE:GE) Power Services business announced a new multiyear services agreement in which GE will support the long-term availability of its three 9FA gas turbines at IEC’s Eshkol Power Station, Tzafit Power Station and Alon Tavor Power Station.
Paul McElhinney, president and CEO of GE’s Power Services business, today met with IEC and other GE executives in a formal signing ceremony for the multiyear agreement at IEC’s headquarters in Haifa. The new deal follows a previous 13-year multiyear agreement between IEC and GE for the three stations. The new pact goes into effect when the old service agreement expires in 2017. The agreement covers parts, repair and technical advisory services for planned outages for the three 9FA units.
GE’s McElhinney said, “GE is delighted to continue our close working relationship with IEC by implementing this multiyear agreement and maintaining IEC’s three power plants. We are proud to help IEC work to increase the country’s long-term energy supply by improving the reliability and availability of its existing 9FA gas turbine fleet.”
The multiyear services agreement will cover the following sites:
- The natural gas-fired, 1,449-megawatt (MW) Eshkol Power Station, which is located in the north industrial zone of Ashdad and supplies power to Israel’s Shephelah region. This station is Israel’s third largest power plant in production capacity.
- The 650-MW Tzafit Power Station, located 40 kilometers southeast of Tel Aviv. The facility features a 9FA-gas turbine combined-cycle system and two 9E gas turbines in simple-cycle mode to provide peaking power. Tzafit is one of GE’s first IEC gas turbine project sites.
- The 650-MW Alon Tavor Power Station is a sister power station to Tzafit and includes one 9FA natural gas combined-cycle system with a steam block from Alstom Power, which GE acquired in November 2015. The station is located in the Alon Tavor industrial zone.
GE and IEC have a long-standing relationship that dates back to 1950. GE has supplied IEC with gas and steam turbines, as well as equipment and services, to help improve its transmission and distribution operations. (Original Source)
Shares of General Electric are currently trading at $30.94, down $0.11 or -0.35%. GE has a 1-year high of $33 and a 1-year low of $24.26. The stock’s 50-day moving average is $31.42 and its 200-day moving average is $30.67.
On the ratings front, GE has been the subject of a number of recent research reports. In a report issued on August 31, Morgan Stanley analyst Nigel Coe reiterated a Hold rating on GE, with a price target of $32, which represents a slight upside potential from current levels. Separately, on August 18, Credit Suisse’s Julian Mitchell reiterated a Buy rating on the stock and has a price target of $34.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nigel Coe and Julian Mitchell have a total average return of 1.5% and 8.7% respectively. Coe has a success rate of 51.5% and is ranked #1679 out of 4147 analysts, while Mitchell has a success rate of 76% and is ranked #305.
The street is mostly Bullish on GE stock. Out of 12 analysts who cover the stock, 6 suggest a Buy rating , 4 suggest a Hold and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $31.20, which represents a slight upside potential from current levels.