General Electric Company’s (GE - Free Report) unit, GE Renewable Energy, yesterday announced that it has received a contract to supply onshore wind turbines to Powerica Ltd. Financial terms of the contract were not disclosed by the parties involved.
It is worth noting here that General Electric’s share price increased 0.9% on May 21, eventually closing the trading session at $6.48.
Powerica engages in providing power solutions for standby, prime power and conventional diesel-related applications. Also, it owns as many as 11 winds farms in Tamil Nadu and Gujarat.
Inside the Headlines
As noted, GE Renewable Energy will supply 38 units of 2.7-132 onshore wind turbines to Powerica. Of these, 19 onshore wind turbines will be delivered at Powerica’s wind farm based in Rajkot while the rest will be supplied to Khambaliya wind farm. Both projects can collectively can generate 102.6 MW of energy.
The wind turbines are expected to work efficiently in Gujarat, which has low wind speed conditions.
This contract has helped build a healthy relationship between GE Renewable Energy and Powerica.
Other Contracts Won Recently
In May 2020, GE Renewable Energy received a contract to supply 52 units of 3 MW platform onshore wind turbines. The other party to the contract was Fina Enerji. Financial terms of the transaction were not disclosed.
The wind turbines will be delivered to Fina Enerji’s wind farms located in Pazarkoy, Baglama, Tayakadin and Yalova. These wind farms collectively can produce 193 MW of energy.
In April, GE Renewable Energy secured a service contract from DIF Capital Partners. Per the 10-year deal, the company will be responsible for servicing 122 GE 1.56-82.5 turbines.
It is worth mentioning here than GE Renewable Energy’s revenues in the first quarter of 2020 increased 26% year over year. The improvement was primarily driven by onshore wind turbine — including deliveries of 731 new unit and supply of 219 repower kit.
Zacks Rank, Price Performance, Estimate Trend and Competitors
General Electric currently has a market capitalization of $56.2 billion and a Zacks Rank #3 (Hold). Debt reduction efforts, portfolio-restructuring actions and digital business might support the company’s performances in the quarters ahead. However, the coronavirus outbreak is expected to severely hurt its second-quarter performance — especially that of GECAS and Aviation.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, General Electric’s earnings estimates for 2020 and 2021 have changed. Currently, the Zacks Consensus Estimate for its earnings is pegged at 4 cents for 2020 and 36 cents for 2021, reflecting decline of 91.5% and 48.6% from the respective 60-day-ago figures.
General Electric Company Price and Consensus