Page 6 - AsiaElec Week 30 2022

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GE Renewable Energy loss

widens, profit outlook dim

GLOBAL IN the second quarter, GE Renewable Energy’s is a long-term investment, and as an industry, is
losses widened, while the company says it “no still not at full maturation.
longer expects a step-up in profit in Renewable “Grid is a critical part of the energy transition,
Energy in the second half” of 2021. and is where we’re making good progress today.
Executives for the US conglomerate cited “Our priority is onshore wind, where many
pressure in the US onshore sector, “fleet dura- pressures are converging. The ongoing paraly-
bility”, high inflation and new product costs as sis in Washington with the PTC exploration is
reasons. hitting our most profitable market (which is US
GE Renewable Energy posted losses of onshore wind), impacting demand. This is also
$419mn in Q2, compared with a loss of $99mn coupled with inflationary pressures.”
in the same period a year earlier. Orders for Q2 were down 3%, or for the first
Orders and revenue were also down from six months of the year down 12% to $5.9bn com-
2021, by 3% to $3.1bn and 23% to $3.1bn pared with a year earlier.
respectively. Revenues for the second quarter dropped
“Renewables remains challenged,” said GE 23% to $3.1bn compared with a year earlier,
CEO Larry Culp. But the division is anticipated and the division’s negative margin broadened to
to return to profitability over time, said the 13.5% from 2.4%.
company. Earlier in July, GE announced that its energy
Company officials cited the expiration in the portfolio of businesses, including GE Renewable
US of the Production Tax Credit (PTC), which Energy, GE Power, GE Digital and GE Energy
will be completely phased out in 2023. Efforts to Financial Services, will be rebranded as GE Ver-
extend it have so far failed in the US Congress. nova starting in 2024.™
Chief financial officer Carolina Dybeck
Happe said on a conference call: “Offshore wind

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