General Electric Company (NYSE:GE)’s Distributed Power business announced that four of its Waukesha gas Enginators were commissioned at the Lekki Free Zone (LFZ) near Lagos, providing 12 megawatts (MW) of uninterrupted power supply to the first phase of the Lekki development zone.
With three Waukesha 275GL+ and one VHP 7104GSI gas Enginators, this project is the largest of its kind in sub-Saharan Africa using GE’s 275GL+ and VHP Enginator technology. The engines’ wide fuel flexibility and ability to run on compressed natural gas and propane provides operators with a cost-effective alternative to other fuels as well the ability to meet the zone’s strict environmental guidelines regarding exhaust emissions.
“The future of the Lekki Trade Zone is essential to Nigeria’s growth as West Africa’s economic driver,” said Omodele Doherty, AGM—Business Development of the LFZ. “We cannot accomplish our expansion goals without a reliable source of continuous power, which is why we turned to GE’s Waukesha technology as a solution.”
The LFZ covers a total area of 16,500 hectares and is being developed in a joint venture between the Lagos State Government and the Chinese consortium CCECC-Beyond International Investment & Development Co., Ltd (CCECC-Beyond). The Waukesha Enginators were procured from GE and supplied by China Diesel Support Services Ltd (CDSS), a Hong Kong-based authorized distributor of GE’s Waukesha gas engines.
The LFZ’s (Phase I) electrical power needs and requirements at full occupancy is envisaged to expand to an estimated 540 MW gross capacity, as the LFZ quickly develops into one of the largest free-trade commercial, logistics and manufacturing hubs in West Africa. Development in the LFZ is supported by investment incentives from the Lagos State government and further growth is expected as the area becomes an increasingly important global distribution center.
“The Lekki Free Zone is a landmark development that will further consolidate Nigeria as a leading investment destination in Africa,” said George Njenga, sub-Saharan region leader for GE’s Distributed Power business. ”We are delighted to provide GE’s proven Waukesha power solutions to this important industrial and commercial hub.”
With over 150 units installed throughout Nigeria, GE’s Waukesha customers receive local expert sales and service support for the lifetime of their equipment from IGPES Gas & Power, the authorized Waukesha gas engines distributor in Nigeria. GE’s reciprocating engine network in the country also is strengthened by Clarke Energy, the authorized distributor for GE’s Jenbacher and diesel engine product lines, which serves hundreds of commercial and industrial customers with complete power generation solutions.
This announcement comes one year after GE launched its Distributed Power business for Africa in Lagos, building on GE’s commitment to help address the continent’s need for reliable, local power to promote economic development and security in urban and rural areas. (Original Source)
Shares of General Electric opened today at $26.61 and are currently trading up at $26.7199. 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 $26.95 and its 200-day moving average is $25.74.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on June 26, William Blair analyst Nicholas Heymann reiterated a Hold rating on GE, with a price target of $30, which implies an upside of 12.7% from current levels. Separately, on June 18, Deutsche Bank’s John G. Inch maintained a Hold rating on the stock and has a price target of $29.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicholas Heymann and John G. Inch have a total average return of -3.2% and 12.8% respectively. Heymann has a success rate of 25.0% and is ranked #2948 out of 3708 analysts, while Inch has a success rate of 83.3% and is ranked #815.
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 24.0% from current levels.