General Electric To Upgrade Edison's Power Plant In Italy
Zacks Investment Research | Apr 04, 2018 11:02PM ET
General Electric Company’s (NYSE:GE) Power segment recently entered into an agreement with Edison — the second largest integrated energy company in Italy — to improve performance at the latter’s Candela combined-cycle power station based in Puglia. Per the deal, General Electric will be assigned the task of installing its industry-leading Advanced Gas Path ("AGP") technology at the plant. This, in turn, might improve the company’s operational performance as well as flexibility with more output, efficiency and availability. Notably, this AGP installation marks the first of this type of implementation in south Europe.
As part of the contract, General Electric should be responsible for the upgradation of hardware to the current gas turbine that would increase the plant’s efficiency and output to 400 megawatts (MW). Apart from the AGP solution, the company’s predictive maintenance software and cybersecurity solution will allow Edison to improve asset visibility, reliability and security. The solution is likely to reduce the plant’s operating and maintenance costs as well. Particularly, the deployment of Predix-based Asset Performance Management (APM) digital solution will offer important insights into operational risks along with improving inspection intervals.
GE Power was also selected to lead Engineering Procurement and Commissioning (EPC) project together with Alstom (PA:ALSO) Power Systems to build the ultra-supercritical (USC) coal power plant Ostroleka C in Poland. Apart from co-leading the consortium, the company’s work will encompass of designing, manufacturing and delivering its ultra-supercritical technology components for this power plant.
Notably, GE Power is the largest business segment of the company in terms of corporate revenues. However, the business has been a drag on earnings over the last few quarters. This is because global demand started to decline with increasing popularity of renewable energy sources, overcapacity, lower utilization and fewer outages. Moreover, in a bid to focus more on its core business activities, the company has exited from the financial business and has increased its investments in key industrial businesses through restructuring, state-of-the-art technology and research & development initiatives.
Earlier this week, the company inked an agreement to sell a trio of its health-care information technology businesses to a private equity firm, Veritas Capital. This divestment is a step toward General Electric’s initiatives to streamline its operations and sharpen its focus on smart diagnostics and connected devices.
In the last three months, the Zacks Rank #4 (Sell) company has underperformed the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.