General Electric Company
) recently inked an agreement with Saudi Electricity Company
(SEC), the largest utility company of west Asia, to provide gas
turbines and other related equipment to meet the increased energy
demands of the Kingdom of Saudi Arabia. The contract, worth $700
million, also includes two eight-year service agreements for
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In accordance with the deal, indigenous technology from General
Electric will help to generate more than 3.8 gigawatts of power
for SEC's combined-cycle power plants. In addition, it will also
provide significant fuel savings and lower emissions with high
levels of fuel efficiency.
General Electric is likely to ship equipment for the project from
the beginning of 2015. These include gas turbines that are
manufactured in its Greenville facility, and steam turbines and
generators that are produced in its Schenectady facility.
To date, General Electric has over 500 gas turbines installed in
the Kingdom of Saudi Arabia and operates in 40 SEC power plants,
generating more than half of the country's energy requirements.
The current contract further reinforces the business relationship
between SEC and General Electric that spans for over four
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content, and
industrial products, the company serves over 100 million
Its segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital. The Power & Water segment
produces gas, steam and aero derivative turbines; generators;
combined cycle systems; and renewable energy solutions, as well
as provides water treatment services and equipment. This segment
also sells surface and sub-sea drilling and production systems,
floating production platform equipment, compressors, turbines,
turbo expanders and high pressure reactors to oil and gas
companies, as well as provides related services.
General Electric currently has a Zacks Rank #3 (Hold). Other
companies in the industry that are worth mentioning include
Hutchison Whampoa Ltd.
Raven Industries Inc.
), each having a Zacks Rank #2 (Buy).