GE Wins Oil & Gas Order - Analyst Blog

General Electric Company's (GE) Oil and Gas business division has won a couple of contracts from Daewoo Shipbuilding & Marine Engineering Co., Ltd of South Korea. The total value of the contracts is $120 million.

GE will supply a blowout preventer (BOP) stack and control system. It will be commissioned on a drill ship for oil and gas exploration activities offshore Brazil. A blowout preventer is a large, specialized valve used to seal, control and monitor oil and gas wells. Blowout preventers were developed to cope with extreme erratic pressures and uncontrolled flow emanating from a well reservoir during drilling.

In addition, GE will supply two complete drilling packages for installation on drill-ships.

GE 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 infrastructure technologies.

Energy Infrastructure business is a leader in the field of development, implementation and improvement of products and technologies that harness resources such as wind, oil, gas and water. Its operations are located in North America, Europe, Asia, South America and Africa.

Within Energy Infrastructure, Oil & Gas supplies mission critical equipment to the global oil and gas industry, used in applications spanning the entire value chain from drilling and completion through production, transportation and pipeline inspection and including downstream processing in refineries and petrochemical plants.

General Electric Company is a global infrastructure, finance and media company. GE provides aircraft engines, power generation and water processing equipment, and security technology, medical imaging, business and consumer financing, media content and industrial products. GE has presence in more than 100 countries and employs in excess of 300,000 people worldwide.  

We currently have a Neutral recommendation on General Electric.