GE Cypress platform turbine. Image by: GE Renewable Energy.
The renewable energy segment of General Electric (NYSE:GE) cut its loss by 61% year-over-over in the second quarter of 2021 to USD 99 million (EUR 83.8m).
Segment margin was negative 2.4%, which represented an improvement of 480 basis points reported and 520 basis points organically from a year ago, mainly stemming from cost reductions and higher volume in the onshore wind business, the company said on Tuesday.
Renewables’ revenues increased 16% reported and 9% organically to USD 4 billion on the back of higher equipment revenues in onshore wind thanks to more international unit deliveries. Onshore wind services showed a decline due to fewer repower upgrades.
It was onshore wind repower demand, however, that drove a rise in second-quarter orders as onshore wind equipment orders were down due to US production tax credit (PTC) uncertainty. Orders increased 7% reported and 5% organically to USD 3.2 billion.
GE highlighted the finalisation of a contract to supply 87 Haliade-X 14 MW turbines for the Dogger Bank C offshore wind project in the UK in the period.
More details of the segment's performance:
in USD million
Total segment revenues
- Onshore wind
- Grid solutions
- Offshore wind and hybrid solutions
Segment profit (loss)
Segment profit margin
GE’s total orders grew 33% to USD 18.3 billion, and total revenues were up 9% to USD 18.3 billion.
GE chairman and chief executive said the company showed strong overall performance in the quarter, with orders and revenue returning to growth and operating margins expanding across all segments. It increased its full-year free cash flow outlook.