General Electric (GE) Wins Gas Turbine Contract in Greece
General Electric Company GE recently announced that it secured a deal from Greek Copelouzos Group’s Damco Energy S.A. (“DAMCO”) to supply power generation equipment for the latter’s 840 megawatts (MW) natural gas-fired power plant. The power plant will be constructed in Alexandroupolis, Greece.
Per the contract, General Electric will supply an engineered equipment package that includes a GE 9HA.02 gas turbine, an STF-D650 steam turbine, a W88 generator, a triple pressure with reheat Heat Recovery Steam Generator (HRSG) and Mark VIe Distributed Control System (DCS) software solution for the Alexandroupolis plant. Also, the deal includes a 14-year full-service contract. The plant will likely come online in 2026.
Alexandroupolis Electricity Production SA will finance, own, build and operate the power plant and Public Power Corporation S.A. and DEPA S.A. will have 51% and 29% share in the company, respectively. Alexandroupolis Electricity Production SA has selected DAMCO as the EPC contractor for the project.
Electricity generated from the new plant will boost Greece’s energy supply, develop the Alexandroupolis region and will support the country’s ongoing transition to renewable energy resources by balancing the intermittency of solar and wind generation.
GE is benefiting from the strong performance of the Aerospace segment. Continued recovery in the commercial market bodes well for the unit. Robust consumer demand is driving orders in the segment.
The Zacks Consensus Estimate for GE’s 2023 earnings per share is currently pegged at $1.97, suggesting a 24.8% decline from the year-ago reported figure. The same for 2024 stands at $3.89, indicating growth of 32.6% from the prior-year reported number.
Price Performance
Shares of General Electric have gained 41% compared with the industry’s 2.3% increase in the past six months.
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Zacks Rank and Stocks to Consider
GE currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked companies are discussed below:
Deere & Company DE presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.7%. The stock has rallied 16.3% in the past six months.
Alamo Group Inc. ALG presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.
In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 46.6% in the past six months.
Allegion plc ALLE presently carries a Zacks Rank #2 (Buy). ALLE’s earnings surprise in the last four quarters was 10.3%, on average.
In the past 60 days, estimates for Allegion’s fiscal 2023 earnings have increased 4.1%. The stock has gained 18% in the past six months.
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