Delivering on its commitment to support the development of Iraq’s energy infrastructure, General Electric’s (GE) power unit, GE Power, provided an advanced 9E gas turbine to the Ministry of Electricity’s (MoE) Al Qudus Power Plant. GE will also service up to seven GE 9E gas turbines at the facility throughout 2019, including maintenance, supply of parts and rehabilitation.
GE is installing the new gas turbine at the site and it is expected to generate up to an additional 125 megawatts (MW) of electricity. The service agreement will enhance the reliability of operations at the plant, helping to maintain a stable supply of up to 875 megawatts (MW) of power over the course of the coming year.
Mussab al-Mudarris, Director of the Media Department of the MoE said, “We made a promise to the people of Iraq to bring efficient power online as soon as possible. One of the fastest ways to deliver on this promise is to enhance the productivity of existing power generation facilities. GE, with its large installed base of power generation equipment across Iraq, can help us meet this objective. The delivery of a new gas turbine at Al Qudus Power Plant and our new services agreement with GE will help deliver much-needed power to the national grid reliably within a short timeframe.”
GE’s 9E technology is capable of running on more than 50 different kinds of fuel. This allows the MOE the flexibility it needs to operate the unit on the most economical source available and to keep generating power using liquid fuels when gas is unavailable.
“It is essential to bring quick, proven and efficient solutions to help the Ministry of Electricity strengthen the country’s power infrastructure,” said Joseph Anis, President and CEO of GE’s Power Services business in Africa, South Asia and the Middle East. “Since 2011, GE has brought more than 14 gigawatts of power online across the country, and we remain committed to delivering the power technologies of the future to keep supporting the progress of the Iraqi people.”
This announcement builds on GE’s strong legacy of over 50 years of contributions to the development of Iraq’s power sector. In the north, GE’s teams have been powering liberated areas with the rehabilitation of Mosul’s Al Qayara Power Plant. In central Iraq, the company is helping to set up the country’s largest combined cycle power plant – the 3 gigawatts Basmaya Power Station – which will also be Iraq’s first digital power plant. In the south, GE’s Advanced Gas Path (AGP) upgrade solution is allowing the MOE to decrease the downtime of gas turbines, improve availability, enhance performance and lower annual operations and maintenance costs at the Najibiya Power Plant. From north to south, GE-built solutions are helping to enable growth, health, connection and safety in communities across Iraq.
GE employs up to 300 people in Iraq, with three offices across the country – in Baghdad, Basra and Erbil. Today, GE and its partners power more than 90 percent of the aircrafts operated by Iraqi Airways, the company’s technologies contribute up to 55 percent of the country’s current electricity production and nearly 4,000 GE Healthcare products are deployed in hospitals and clinics across Iraq.
Shares of General Electric are currently trading at $10.02, down $0.07 or -0.73%. The stock has a 1-year high of $15.59 and a 1-year low of $6.66. The stock’s 50-day moving average is $9.23 and its 200-day moving average is $10.30.
On the ratings front, GE has been the subject of a number of recent research reports. In a report issued on February 14, J.P. Morgan analyst Stephen Tusa upgraded GE to Hold. Separately, on February 12, Gabelli’s Justin Bergner maintained a Buy rating on the stock.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stephen Tusa and Justin Bergner have a yearly average return of 12.8% and 7.7% respectively. Tusa has a success rate of 73% and is ranked #348 out of 5180 analysts, while Bergner has a success rate of 55% and is ranked #1740.
Overall, GE has eight bullish analysts in its corner over the last three months, six analysts playing it safe on the sidelines , and one analyst who sees the stock a Sell. The 12-month average price target showcase 7% in upside potential for the ‘Moderate Buy’ rated stock. (See GE’s price targets and analyst ratings on TipRanks).