General Electric Company’s (GE - Free Report) business unit GE Renewable Energy recently announced that it has clinched an onshore wind turbine contract from Rio Energy. Notably, this marks the company’s second contract with Rio Energy in Brazil.
Per the deal, Rio Energy 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, per the deal, it will produce, supply, install and commission 30 of its state-of-the-art turbines, capable of operating in the 4.8 MW-5.1 MW range. The company will work on installing the turbines at Rio Energy’s Serra da Babilonia wind farm facility, which currently carries an installed capacity of 223.25 MW. The installment will enhance the capacity of the wind farm by an additional 150 MW. Notably, the company expects the installation of the Cypress turbines to get completed in 2020's last quarter.
In addition, General Electric will be responsible for providing 10 years of operation and maintenance services for all of its equipment delivered in the facility, with an option of extending it to 20 years. It’s worth mentioning here that the company will produce various components of the Cypress units at its facility located in Camaçari, Bahia, while the blades will be supplied by its Port of Suape-based business unit, LM Wind Power.
Existing Business Scenario
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, challenges in the segment persist.
In the past three months, the Zacks Rank #3 (Hold) company’s share price has increased 17% compared with 6.8% growth recorded by the industry.
Some better-ranked stocks are Cintas Corporation (CTAS - Free Report) , Macquarie Infrastructure Company (MIC - Free Report) and ITT Inc. (ITT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cintas outpaced estimates in each of the preceding four quarters, the average being 8.50%.
Macquarie surpassed estimates twice in the trailing four quarters, the average positive earnings surprise being 5.34%.
ITT outpaced estimates in each of the preceding four quarters, the average being 7.85%.
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