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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).

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