Stock Update (NYSE:GE): General Electric Company Completes Upgrade at Upper Egypt Electricity Company’s Kureimat Plant in Egypt


General Electric Company (NYSE:GE) announced that it has completed the modernization of its latest combustion solutions for the 9FA gas turbine at the Kureimat power plant, located in Atfieh, Upper Egypt, and owned by the Upper Egypt Electricity Production Company (UEEPC). The upgrade has been implemented on the first of two 9FA gas turbines at the site, increasing the unit’s output from 250 megawatts (MW) to 270 MW and improving its efficiency by 2.8 percent, in addition to lowered fuel consumption and reduced operational costs by extending outages intervals. As a result, UEEPC will be able to recognize approximately $3.5 million in extra revenues annually.

Eng. Ibarahim AlShahat, chairman of the Upper Egypt Electricity Company, said: “The upgrades by GE will include best-in-class technology and will help us meet our three main goals: increasing efficiency and output of our power plant as well as reducing downtime for outages. Through our collaboration, we look forward to improving flexibility and operational efficiency of our existing power plant for the coming years.”

The Kureimat power plant is a combined-cycle plant that is powered by two 9FA gas turbines, each generating 250 MW, and a steam turbine, with a total output of 750 MW. The upgrade, which includes GE’s Advanced Gas Path (AGP), Advanced Extendors Combustion and Dry Low NOx (DLN) 2.6 XD5, is expected to increase availability and lower maintenance costs due to the extension of maintenance intervals of approximately 32,000 hours; almost four years of operations. This upgrade will help power an additional 75,000 Egyptian households nationwide.

Joe Anis, president and CEO of GE’s Power Services in the Middle East and Africa, said: “We are proud to be supporting the Upper Egypt Electricity Company to bring this unique upgrade to the Kureimat plant. Our priority is to continue working with UEEPC to further support the Ministry of Electricity’s goal to improve performance and efficiency across the energy sector.”

This is the second time this upgrade is implemented in Egypt, and upgrade of the second unit is expected to be completed by mid-2017. This project reflects GE’s commitment to making a positive impact on the quality of life of Egyptians by helping provide a seamless supply of electricity. GE has been a partner to Egypt for more than 40 years; today, more than 140 GE gas and steam turbines are installed in country, generating more than 15.5 gigawatts of power, enough to meet the electricity needs of more than 15 million Egyptian homes.

Shares of General Electric closed yesterday at $29.39, down $-0.35 or -1.18%. GE has a 1-year high of $33 and a 1-year low of $28.19. The stock’s 50-day moving average is $29.92 and its 200-day moving average is $30.26.

On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on March 13, J.P. Morgan analyst Stephen Tusa maintained a Sell rating on GE, with a price target of $29, which represents a slight downside potential from current levels. Separately, on March 9, Cowen’s Gautam Khanna 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, Stephen Tusa and Gautam Khanna have a yearly average return of 3.5% and 11.4% respectively. Tusa has a success rate of 68% and is ranked #1416 out of 4549 analysts, while Khanna has a success rate of 66% and is ranked #694.

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 $34.5 which is 17.4% above where the stock closed yesterday.

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