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GE to combine renewable, grid assets into single unit

Published 30/01/2019, 14:20
© Reuters. FILE PHOTO: The General Electric logo is pictured on the General Electric offshore wind turbine plant in Montoir-de-Bretagne
GE
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(Reuters) - General Electric (NYSE:GE) Co said on Wednesday it would consolidate its renewable and grid assets into a single unit, seeking to tap into the growing global demand for clean energy generation, a day ahead of the company's fourth-quarter results scheduled for Thursday.

The plan is to combine GE's grid solutions and hybrid renewables, including solar and storage systems, into the GE renewable energy business, complementing the company's existing onshore wind, offshore wind and hydro offerings.

This is GE's first major move after its third-quarter earnings in October when the U.S. Securities and Exchange Commission and Department of Justice had expanded probe to include the $22-billion (17 billion pounds) writedown of goodwill from its power division.

GE last year announced plans to focus on jet engines, power plants and renewable energy, by disposing of its healthcare and Baker Hughes units, along with other ongoing restructuring programs.

GE's renewable energy contributed about 9 percent of the company's total industrial segment revenues in 2017, prior to this integration.

The new renewable energy unit will be part of GE's energy related portfolio, which also includes the newly created gas power business and GE's power unit, which produces power generation equipment.

"This strategic realignment positions GE to lead in the fast-growing renewable energy market," GE Chief Executive Officer Lawrence Culp said in a statement.

© Reuters. FILE PHOTO: The General Electric logo is pictured on the General Electric offshore wind turbine plant in Montoir-de-Bretagne

GE shares were up nearly 1 percent to $8.96 in premarket trading.

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