Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

General Electric Company (GE - Analyst Report) recently inked an agreement with Saudi Electricity Company (SEC), the largest utility company of west Asia, to provide gas turbines and other related equipment to meet the increased energy demands of the Kingdom of Saudi Arabia. The contract, worth $700 million, also includes two eight-year service agreements for planned maintenance.

In accordance with the deal, indigenous technology from General Electric will help to generate more than 3.8 gigawatts of power for SEC’s combined-cycle power plants. In addition, it will also provide significant fuel savings and lower emissions with high levels of fuel efficiency.

General Electric is likely to ship equipment for the project from the beginning of 2015. These include gas turbines that are manufactured in its Greenville facility, and steam turbines and generators that are produced in its Schenectady facility.

To date, General Electric has over 500 gas turbines installed in the Kingdom of Saudi Arabia and operates in 40 SEC power plants, generating more than half of the country’s energy requirements. The current contract further reinforces the business relationship between SEC and General Electric that spans for over four decades.

General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content, and industrial products, the company serves over 100 million customers worldwide.

Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. The Power & Water segment produces gas, steam and aero derivative turbines; generators; combined cycle systems; and renewable energy solutions, as well as provides water treatment services and equipment. This segment also sells surface and sub-sea drilling and production systems, floating production platform equipment, compressors, turbines, turbo expanders and high pressure reactors to oil and gas companies, as well as provides related services.

General Electric currently has a Zacks Rank #3 (Hold). Other companies in the industry that are worth mentioning include ITT Corp. (ITT - Analyst Report), Hutchison Whampoa Ltd. (HUWHY) and Raven Industries Inc. (RAVN), each having a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%