Saudi Electricity Company (SEC) has selected General Electric Company (GE) for providing gas turbine technology and services for its upcoming power plant expansion projects. The approximate value of the agreements with GE is expected to be $500 million and the projects are expected to create more than 100 new jobs.
The power plant expansion projects will add 1,680 megawatts of power to the grid and this is more than half of SEC’s planned annual increase in generation.
The new projects are the 600-megawatt expansion of the SEC power plant in Qurayyah, 480-megawatt expansion of the PP-10 power plant 40 kilometers south of Riyadh City 480-megawatt SEC power plant expansion at Qassim, 350 kilometers north of Riyadh and 120-megawatt expansion of the SEC power facility near Tabouk.
General Electric has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business.
Infrastructure businesses from GE are helping build the energy, health, transportation and technology infrastructure of the new century. These businesses provide the products and services that help developing regions participate in the global economy, while also helping developed regions upgrade with cleaner, more efficient and better technologies.
Financial business at GE offers an array of products and services aimed at enabling commercial businesses, consumers and markets worldwide to build astronger and financially secure future.
GE has adopted strategic imperatives to strengthen its portfolio by building strong growth platforms and generating cash from low-return businesses. Its focus remains on accelerating organic growth and achieving technical and service excellence, while building enduring customer relationships around the world.
GE has 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. Since its incorporation in 1892, the company has developed or acquired new technologies and services that have broadened considerably the scope of its activities. Philips (PHG) and Siemens AG (SI) are major competitors.
We currently have a Neutral recommendation on General Electric Company.