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GE reports fall in first quarter power segment revenues

28 Apr 2021 (Last Updated April 28th, 2021 12:21)

GE has reported a 3% decline in revenues in its power segment to $3.9bn in the first quarter of this year, compared to $4bn in the first quarter of last year.

GE has reported a 3% decline in revenues in its power segment to $3.9bn in the first quarter of this year, compared to $4bn in the first quarter of last year.

Revenues in the company’s renewable energy unit increased by 2% to $3.2bn, as against $3.1bn during the same quarter of last year.

GE said that power segment orders of $3.6bn had declined by 12% reported and organically.

Equipment orders at the company’s gas power segment edged down, driven by the nonrepeat of a large turnkey order and partially offset by an increase in service orders.

GE said in a statement: “Power portfolio orders were down as we continue to exit the new build coal business.

“Gas power revenues were down by 1% reported and 2% organically, driven by significantly lower turnkey projects.

“This was partially offset by services, which were up by 13% reported and organically, as we saw strong transactional backlog execution and higher outages.”

Power portfolio revenues fell by 6% reported and 9% organically, driven by the steam segment, despite growth in the power conversion and nuclear segments.

The company’s renewable energy unit reported orders of $3.5bn, up by 15% reported and 13% organically, due to a large high-voltage direct current (HVDC) order in the grid segment.

In the first quarter, onshore and offshore wind orders also increased.

Onshore wind procured the most equipment, with more than 760 new units delivered in the first quarter of this year. The company failed to deliver any repower upgrades, which led to a decline in onshore wind services.

Offshore wind orders increased with the execution of EDF’s 6MW wind farm project in Saint-Nazaire, France, partially offset by lower revenue in the grid segment.

GE said: “In the grid and hydro segments, cost out and better project execution more than offset the incremental restructuring expenses.”

Earlier this month, GE secured a contract to supply 42 turbines, totalling 110MW, for CleanMax onshore wind hybrid projects in India.

The clean energy generated by the wind turbines will be used to meet the electricity demands of several industrial companies in the states of Karnataka and Gujarat.