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General Electric's (GE) Renewable Energy Secures Twin Contracts

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General Electric Company’s (GE - Free Report) unit, GE Renewable Energy, yesterday announced to have finalized contracts to supply Haliade-X wind turbines for the Dogger Bank wind farm. The financial terms of the contract were not disclosed by the parties involved.

On the same day, GE Renewable Energy secured a contract from the Austrian National Railway Operator, ÖBB, to supply pumped storage turbines (variable speed).

Inside the Headlines

As noted, GE Renewable Energy will supply Dogger Bank’s third phase — Dogger Bank C — with 87 units of Haliade-X 14-megawatt (MW) winds turbines (offshore). Installation of the turbines is expected to start in 2025.

In addition to the turbine supply, Renewable Energy will provide full services to the turbines for five years as per the terms of the Services and Warranty agreement.

Notably, Dogger Bank Wind Farm, situated on the northeast coast of England, will have a combined installed capacity of 3.6 GW of electricity. It will be developed in three phases (each with an installed capacity of 1.2 GW) and will be the biggest offshore wind farm upon completion in 2026. The first two phases — Dogger Bank A & Dogger Bank B — are joint ventures between Equinor ASA (EQNR - Free Report) , SSE Renewables and Eni S.p.A (E - Free Report) , with shares of 40%, 40% and 20%, respectively. Then again, both Equinor and SSE Renewables have a 50% share in Dogger Bank C.

In addition to the Dogger Bank contract, GE Renewable Energy will supply 2 units of 85 MW pumped storage turbines (variable speed) at Austria-based Pumped Hydro Storage Power Plant.

As noted, Renewable Energy will engage in the designing, engineering and model testing of the turbines. Also, it will manufacture the turbines and supply them at the Tauernmoos plant. Supervision of the erection procedure and commissioning will also be done by Renewable Energy.

Other Recent Contracts Won by GE Renewable Energy

In April 2021, GE Renewable Energy secured a contract from CleanMax to supply 42 units of onshore wind turbines (2.7-132) at the latter’s onshore wind hybrid projects in India. Also, the company will provide related services to CleanMax for 10 years.

In March 2021, Renewable Energy received a contract to supply onshore wind turbines in Oklahoma. As noted, GE Renewable Energy will supply 492 units of 2.X-127s and 39 units of 2.X-116 wind turbines. The turbines will be used for Oklahoma-based 1485 MW North Central Wind Energy Facilities.

Also, in the same month, GE Renewable Energy secured a contract from Vietnam Join-Stock Construction Electricity Corporation to supply onshore wind turbines in Vietnam. This marks the company’s second such contract in the Binh Thuan Province of the country.

Renewable Energy provides offshore wind turbines, high-voltage equipment, blades for wind turbines (onshore and offshore), and other products and services. Its revenues in the first quarter of 2021 increased 1.7% year over year to $3,248 million. Organically, the segment’s sales were flat year over year, while orders increased 13%.

Zacks Rank, Price Performance and Estimate Trend

General Electric currently has a market capitalization of $115.4 billion and a Zacks Rank #3 (Hold). The company is poised to benefit from its healthy liquidity position, actions to restructure portfolio and solid contract wins. However, the market-related challenges in Aviation are worrying.

In the past three months, General Electric’s share price has gained 3.8% as compared with 9.5% growth recorded by the industry.




 

In the past 30 days, the company’s bottom-line estimates for 2021 and 2022 have been revised upward. Currently, the Zacks Consensus Estimate for earnings is pegged at 26 cents for 2021 and 53 cents for 2022, reflecting improvements of 8.3% and 1.9% from the respective 30-day-ago figures.

Also, earnings estimates are pegged at 4 cents for the second quarter of 2021, reflecting growth of 33.3% from the 30-day-ago figure.

A Stock to Consider

Crane Co. (CR - Free Report) , belonging to the same industry, presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, Crane’s earnings estimates have improved for the current year. Also, its earnings surprise for the last reported quarter was 26.72%.

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