General Electric Company (NYSE-GE) has been awarded a contract by Chinese State Development & Investment Corp., Ltd. to supply two giant gas turbines. These turbines will be installed at a new combined cycle power plant on the Zhoushan Archipelago in Zhejiang Province, China. By using these super-efficient gas turbines, General Electric HA can help reduce emissions by up to 60% and can provide the plant with equivalent capacity to coal. For the same generating capacity, the company would need to burn 1.35 million tons of coal per year. The gas turbines will also increase reliability and flexibility by boosting electricity capacity in Zhejiang province, but also ensure the stability of the power grid.
The completion of the aforementioned 1.7 gigawatt plant will power China’s largest archipelago, which includes 1,390 islands. The first unit is expected to be operational by the end of 2025. When mixed with natural gas, it is likely to burn around 10% of the volume of green hydrogen in the future.
General Electric Company also recently released its financial results for 2Q 2023. According to the press release, the company increased its total sales by 59% to $22 billion compared to the same quarter of the previous year. And it doubled the number of orders. This performance reflects strong market demand for innovative technologies and services, as well as a demonstration of leaner operations with the company’s more focused businesses. Services once again proved that it is clearly one of the company’s best assets, accounting for more than 85% of revenue, not only because of its resilience and higher margins, but also because the company keeps its customers in touch on a daily basis.
The company’s stock has more than doubled from the previous year, with the stock trading at $50.52 per share on October 12, 2022 and now trading at $113.26 per share. General Electric Company (NYSE-GE) also pays quarterly dividends to its shareholders. The dividend yield is currently 0.28% p.a. The actual dividend amount was approved by the company’s board of directors at $0.08 per share. The average target price for the short , to medium term investment horizon was set at USD 131.38 per share.
