GE Power Conversion, a division of General Electric Company (GE - Free Report) , recently signed new contracts with an unnamed company for electric power and propulsion systems for two liquid natural gas (LNG) carriers and an LNG Floating Storage Regasification Unit (FSRU), bringing its tally of new contract wins to $80 million in the last six-month period. To date, GE has secured contracts to supply systems for 26 LNG carriers and five FSRUs.
GE’s combination of high power PWM technology based on insulated gate bipolar transistors (IGBTs) together with robustly simple induction motor technology offers important advantages to ship owners. The advanced motor technologies are more consistent and help in reducing maintenance costs, and improve the service life. The high power pulse width modulation (PWM) technology is a value addition for its customers.
Back-to-back contract wins have been a catalyst for GE Power Conversion. The recent contracts from Hyundai Heavy Industries – world’s largest shipbuilder – and Daewoo Shipbuilding & Marine Engineering (DSME) - another shipbuilder of Korea - exhibit success of its innovative power and propulsion technology. General Electric has deployed this technology to develop induction motor for the marine industry for the past 15 years and is now applying this technology extensively in naval, offshore, cruise ships and other diverse sectors.
General Electric is one of the most diversified technologies and financial service corporations in the world. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. GE Power & Water produces gas, steam and aero derivative turbines; generators; combined cycle systems; and renewable energy solutions, as well as provides water treatment services and equipment. .
General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now are Honeywell International Inc (HON - Free Report) , Macquarie Infrastructure Company LLC (MIC - Free Report) and Crane Co (CR - Free Report) , each carrying a Zacks Rank #2 (Buy).