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GE to Offer Onshore Wind Turbine Solution to EDF Renewables

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General Electric Company’s (GE - Free Report) unit GE Renewable Energy recently announced that it has entered into a definitive onshore wind contract with EDF Renewables. Notably, this marks General Electric’s first contract with the Brazil-based company.

Per the deal, EDF Renewables will utilize General Electric’s biggest onshore wind turbine solution — Cypress platform — for catering to consumers’ growing requirements of renewable and sustainable energy.

As noted by General Electric, the deal requires it to produce and supply 25 of its state-of-the-art turbines, capable of operating at 5.3 MW. Notably, both the companies will work on installing the turbines at EDF Renewables’ Ventos da Bahia wind farm facility, which currently carries an installed capacity of 182 MW. As a matter of fact, the installment will enhance the capacity of Ventos da Bahia wind farm by an additional 132.5 MW.

In addition, General Electric will be responsible for providing 20 years of operation and maintenance services for all of its equipment delivered in the facility. It’s worth noting here that the company will produce the Cypress units at its facility located in Camaçari, Bahia, while the blades are to be supplied by its Port of Suape-based business unit — LM Wind Power.

Our Take

General Electric intends to become more competent by focusing on core businesses. In June 2018, it rolled out a business portfolio restructuring program to become a high-tech industrial company focused on Aviation, Power and Renewable Energy. Although the company is working toward improving operations in the Power segment, persistent challenges in the segment remain a concern.

Year to date, the Zacks Rank #3 (Hold) company’s share price has increased 9.4% compared with 14.4% growth recorded by the industry.



Stocks to Consider

Some better-ranked stocks from the same space are Danaher Corporation (DHR - Free Report) , HC2 Holdings, Inc. and United Technologies Corporation . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Danaher surpassed estimates in each of the preceding four quarters, the average positive earnings surprise being 3.25%.

HC2 Holdings outpaced estimates thrice in the preceding four quarters, the average positive earnings surprise being 48.55%.

United Technologies outpaced estimates in each of the preceding four quarters, the average positive earnings surprise being 13.19%.

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