General Electric Company’s GE unit, GE Vernova’s Gas Power business, together with Alghanim International, has completed upgrading four 9F.03 class gas turbine units at the Sabiya combined cycle power plant in Kuwait.
GE Vernova is the combined operation of GE Digital, Renewable Energy and GE Power. Its Gas Power business includes General Electric’s gas lifecycle business (including Power Services and Gas Power Systems businesses).
Based in Al Jahra, the Sabiya facility is the largest power plant in the region, with a capacity of 2 gigawatts. The power plant, owned by the Ministry of Electricity, Water and Renewable Energy, houses six GE 9F.03 gas turbines and three D11 steam turbines.
Per the multiyear service deal between GE and Alghanim, GE Vernova was involved in upgrading the Advanced Gas Path solution for the four 9F.03 turbines in blocks 2 and 3 at the power plant. GE will also be responsible for providing supply and maintenance services for the turbine units for seven years.
This collaboration is likely to boost the Sabiya plant’s block output by 6.3% and lower the heat rate by 1.8%. It is worth noting that this upgrade will add 70 megawatts (MW) to the plant’s power generation capacity without requiring any additional fuel. The APG upgrade will aid in catering to the increasing power demand in Kuwait by providing flexible and efficient power solutions.
Earlier, General Electric modernized two gas turbine units in the Sabiya facility’s Block 1, which boosted the plant output by 6% and added more than 35 MW of power generation capacity without using additional fuel.
Zacks Rank and Price Performance
General Electric currently carries a Zacks Rank #3 (Hold).
The company is benefiting from the strong performance of the Aerospace segment due to robust demand and the solid execution of commercial engines and services. After months of softness, a rebound in demand in the Power segment augurs well for General Electric.
In the past year, the stock rose 59% against the industry’s 7% decline.
Image Source: Zacks Investment Research
However, despite improving, supply chain challenges, such as the availability of raw materials and labor shortages, especially in the defense market, continue to weigh on General Electric’s operations.
Stocks to Consider
Some better-ranked companies from the same space are discussed below:
Griffon Corporation GFF presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter average earnings surprise of 28.6%. The Zacks Consensus Estimate for GFF’s fiscal 2024 earnings has increased 13% in the past 60 days. Shares of Griffon have gained 44.3% in the past year.
ITT Inc. ITT currently carries a Zacks Rank #2 (Buy). ITT delivered a trailing four-quarter average earnings surprise of 8%.
In the past 60 days, the Zacks Consensus Estimate for ITT’s 2023 earnings has increased 0.4%. The stock has risen 36% in the past year.
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