Gas turbine orders
General Electric (GE) stock rose ~5% on May 14 after Reuters reported that the industrial conglomerate’s Power division had the highest number of orders for gas turbines in the first quarter of 2019.
Citing data from McCoy Power Reports, Reuters revealed that GE Power had booked six orders for its most-advanced HA-class gas turbines compared with none in the previous year’s quarter.
Reuters further revealed that GE’s first-quarter results had counted only three orders. The three orders, which the company didn’t count in its results, were received from Japan-based Tokyo Electric Power Company.
GE’s orders for gas-fired power plants outpaced the orders booked by its rivals Mitsubishi Hitachi Power Systems and Siemens AG. During the first quarter, Mitsubishi Hitachi received orders for five advanced HA-class gas turbines, while Siemens received orders for four units.
Gas turbine orders in 2018
GE’s Power division had the most orders for gas turbines in 2018 too. GE Power received 33% of the total orders for electricity-generating gas turbines in the year. Mitsubishi Hitachi and Siemens received 31% and 26% of total orders, respectively.
GE dominated its competitors in terms of orders for the older generation F-class turbines last year. However, the industrial conglomerate slipped to the second spot in terms of orders for more advanced and bigger gas turbines that can generate over 100 megawatts of energy. In the HA class, Mitsubishi Hitachi received the highest number of orders at 41%, and GE Power and Siemens accounted for 28% and 25% of orders, respectively.
In the newest-generation turbine or post-F-class category, GE Power lagged behind Mitsubishi Hitachi again. Of the total orders, Mitsubishi Hitachi, GE Power, and Siemens accounted for 49%, 34%, and 16%, respectively.
To gain exposure to GE stock, investors can consider the Industrial Select Sector SPDR ETF (XLI), which has allocated ~3.6% of its fund to the stock. The ETF tracks the performances of industrial-sector stocks in the S&P 500 and has allocated 5.5%, 4.8%, and 4.5% of its fund to GE’s main peers Honeywell (HON), United Technologies (UTX), and 3M Company (MMM), respectively.