"GE (ex-GE Capital)" and /or "Industrial" refer to GE excluding GE Capital. We refer to the industrial businesses of the Company including GE Capital on an equity basis as "GE". In this document, we refer to GECGH as "GE Capital". Our financial services business is operated by GE Capital Global Holdings LLC (GECGH). The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in the appendix of this presentation. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Securities and Exchange Commission rules. Certain of these data are considered "non-GAAP financial measures" under the U.S. generally accepted accounting principles (GAAP). In this document, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with U.S. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. We do not undertake to update our forward-looking statements. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. This document contains "forward-looking statements" - that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. Annual spending to limit global warming to under 1.5 degrees Celsius by 2050 could cost more than $3 trillion, estimates the UN-backed International Renewable Energy Agency (IRENA).CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: Baker Hughes is moving to offer energy transition services and could compete with the future GE energy spinoff.īut the projected size of the market may prove more enticing. The company also holds a 16% stake in oilfield services firm Baker Hughes Co remaining from its ill-timed and short-lived 2017 acquisition. That unit has not achieved an annual profit since 2018, and posted a third-quarter loss of $151 million, compared with a $204 million profit in GE's power group which includes gas turbines. ![]() GE, he said, needs "to be a market leader in sustainability, and they’re not there yet.”Īnother hurdle is the loss-making renewables business, which includes wind turbines. “We'd like to see some resolution for what they’re going to do with their steam business,” said Matt Breidert, managing director for energy transition investing at fund manager Ecofin. Servicing coal-fired power plants, which GE classifies as steam, will be an issue for some investors. And it would include renewables and digital software operations. The energy business would encompass equipment and services for gas, coal and wind turbines, hydro-, nuclear and electric power generation. Shares touched a 3-1/2 year high on the breakup, and finished up 2.6% at $111.29, compared with a 0.35% drop in the S&P 500 index. The GE energy unit's size and reputation will make the spinoff "a meaningful and credible player in the business," he said.Ĭolin Scarola, an equity analyst at investment firm CFRA Research, added, the spinoff could lead to "value creation" in businesses that "in aggregate have been shrinking and losing money both before and since the pandemic." "Investors will welcome a known franchise," said Pickering. It is also similar to electric utilities Enel and Iberdrola's embrace of renewable power over fossil fuels.įor GE, the divestment could unlock value from component businesses and be welcomed by investors valuing pure-play companies over conglomerates, said Dan Pickering, chief investment officer of financial services firm Pickering Energy Partners. The plan echoes that of GE rival Siemens AG, which in 2020 spun off its power division to form Siemens Energy. "Customers need GE at its best and at its most focused to help them navigate the energy transition," Chief Executive Officer Larry Culp said in an interview, referring to utilities and others now moving to solar, wind and hydropower. ![]() ![]() The spinoff would be complete in 2024, GE said. The energy unit will combine existing wind and gas-fired power turbines and services, and software businesses. General Electric Co's plan to spin off energy units into a standalone company could attract investors looking for a well-known name in renewables if they can overlook legacy fossil-fuel operations, financial experts said.Įarlier on Tuesday, the 129-year-old conglomerate outlined a plan to split into three publicly traded companies focused on energy, healthcare and aviation.
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