GE Renewable Energy records wider loss, lower revenues in Q3

GE’s Haliade-X offshore wind prototype. Picture credit: GE Renewable Energy

October 26 (Renewables Now) - The renewable energy segment of General Electric (NYSE:GE) saw its loss widen to USD 151 million (EUR 130m) in the third quarter of 2021 from USD 51 million a year ago as revenues declined 7% reported and 9% organically.

The fall in revenues down to USD 4.2 billion was mainly attributed to fewer repower deliveries at onshore wind services.

The segment’s margin deteriorated 250 basis points reported and organically to negative 3.6%, with onshore wind margins being slightly positive but down year-over-year on new products ramp and supply chain pressure, and offshore wind margins staying negative due to legacy projects.

Offshore wind, however, fuelled a 65% jump in quarterly orders, up to USD 6.6 billion. Onshore wind orders showed modest growth, reflecting increases in services and international equipment, which were partially offset by lower US equipment due to pending modifications to and extension of the Production Tax Credit (PTC).

In its third-quarter report today, GE said that customer preference continues to shift to larger, more efficient turbines to cut costs and that it has witnessed significant demand for its 5-6 MW Cypress and 3-4 MW Sierra Onshore units and its 12-14 MW Haliade-X offshore turbines.

GE now expects the renewable energy division's revenue outlook for the year to be roughly flat. Free cash flow is seen to be down and negative chiefly due to the PTC impact.

More details of the segment's performance:

in USD millions Q3 2021 Q3 2020 9-mo 2021 9-mo 2020
Total segment revenues 4,208 4,525 11,505 11,224
- Onshore Wind 3,047 3,303 8,048 7,914
- Grid Solutions equipment and services 759 936 2,330 2,587
- Hydro 190 160 549 490
- Offshore Wind and Hybrid Solutions 211 127 577 232
Segment profit (loss) (151) (51) (484) (628)
Segment profit margin (3.6) % (1.1) % (4.2) % (5.6) %

(USD 1 = EUR 0.862)

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Browse all articles from Plamena Tisheva

Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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