Energy Companies

General Electric Company (GE) is a high-tech industrial company that operates worldwide through its four industrial segments: Power, Renewable Energy, Aviation and Healthcare, and its financial services segment, Capital.

The Company serves customers in over 170 countries. Manufacturing and service operations are carried out at 82 manufacturing plants located in 28 states in the United States and Puerto Rico and at 149 manufacturing plants located in 34 other countries. According to the press-release for the third quarter 2021 consolidated revenues were $18.4 billion, down $0.1 billion for the quarter, driven by decreased GE Industrial and GE Capital revenues. GE Industrial revenues decreased by $0.1 billion or by 1%, driven primarily by decreases at Renewable Energy and Healthcare. GE Capital revenues decreased by 3%.

For the three months ended September 30, 2021, GE Industrial profit was $0.9 billion or 5% profit margin and increased by $2.2 billion from ($1.3) billion or (7.2%) in the 3^rd quarter 2019, driven primarily by a higher net gain on equity securities of $1.1 billion, higher profit at industrial segments of $0.4 billion.

GE Jenbacher Gas Engine



For the three months ended September 30, 2021, consolidated continuing earnings increased by $1.7 billion primarily due to an increase in GE Industrial profit, partially offset by an increase in GE Industrial provision for income taxes and an increase in GE Capital continuing losses.

For the three months ended September 30, 2021, GE Industrial revenues decreased by $1.2 billion or by 2%. Equipment revenues decreased primarily at Power and Aviation segments, partially offset by an increase in Renewable Energy driven by more wind turbine deliveries and higher revenue at Offshore Wind. GE Capital revenues increased by 1%, primarily as a result of lower marks and impairments primarily in Insurance.
GE Capital continuing losses increased by $0.2 billion or by 28%, primarily as a result of higher debt costs, lower tax benefits related to the BioPharma sale in the first quarter of 2020.

The COVID-19 pandemic has impacted global economies, resulting in workforce and travel restrictions, supply chain and production disruptions and reduced demand and spending across many sectors. These factors have had a material impact on operations and financial performance of the Company, as well as of many of the customers and suppliers in industries that the Company serves.
On March 31, 2020, GE completed the sale of BioPharma business within Healthcare segment to Danaher Corporation for consideration of $21.1 billion, and recognized a pre-tax gain of $12.4 billion.
According to the Company´s Annual Financial Report consolidated revenues were $79.6 billion, down by $15.6 billion or by 16% for the year 2020 primarily driven by decreased GE industrial revenues of $14.6 billion and decreased GE Capital revenues of $1.5 billion.
GE Industrial revenues decreased by $14.6 billion or by 17%, with decreases in services and equipment. The decrease in services was primarily at Aviation, driven by lower commercial spare part shipments and decreased shop visits.

For the year ended December 31, 2020, GE Industrial profit was $7.3 billion and profit margins were 10.0%, up $5.5 billion, driven by the gain on the sale of our BioPharma business of $12.4 billion, lower interest and other financial charges of $0.8 billion.
Orders included $1,136 million, $3,643 million and $3,210 million related to BioPharma for the years ended December 31, 2020, 2019 and 2018, respectively.
For the year ended December 31, 2020, orders decreased by $18.3 billion or by 20%, with decreases at Aviation, primarily driven by declines in both commercial equipment and service orders due to COVID-19 and at Renewable Energy primarily due to a decrease in services orders.

General Electric Company (GE). NYSE Delayed Price, USD; Total revenues (GAAP) and Renewable Energy, USD in millions



Source: GE Earnings Reports,  Yahoo Finance, GE  

GE Industrial cash flows from operating activities (CFOA) were $(1.3) billion and $4.6 billion for the years ended December 31, 2020 and 2019, respectively. GE Industrial CFOA decreased primarily due to lower net income, largely as a result of COVID-19 impacts.

As of December 31, 2020, backlog decreased by $18.1 billion or by 4% compared to 2019 primarily driven by Aviation due to a reduction in Commercial Services backlog and cancellations of commercial equipment orders. Excluding the BioPharma disposition, backlog decreased by $16.8 billion or by 4%.

For the year ended December 31, 2020, consolidated continuing earnings increased by $5.4 billion, due to increased GE Industrial profit of $5.5 billion and decreased provision for GE Industrial income taxes of $0.9 billion. GE Industrial profit increased by $5.5 billion driven primarily by the gain on the sale of our BioPharma business of $12.4 billion. GE Capital continuing losses increased by $1.2 billion primarily due to an impairment of goodwill of $0.8 billion.

Renewable Energy has one of the broadest portfolios in the industry, offering onshore and offshore wind, grid, hydropower, and hybrid solutions including solar and storage. Renewable Energy segment revenues represent 21% of total industrial revenues and Renewable Energy segment profit represents (10)% of total industrial profit for the year ended December 31, 2020.

For the year ended December 31, 2020, segment orders were down $0.6 billion (3%). Segment revenues were up by $0.3 billion or by 2% and remained $15.6 billion in 2020 compared to $15.3 billion in 2019. The increase was primarily due to Onshore Wind with 300 more wind turbine shipments on a unit basis, and 13% more on a megawatt basis, and to Offshore Wind and Hybrid Solutions. Segment profit was up by $0.1 billion or by 10% and remained ($0.7) billion in 2020 compared to ($0.8) billion in 2019. The increase was impacted by higher sales volume at Onshore Wind and favorable cost reduction measures.

Onshore Wind in US



In spite of the negative results within the Renewable Energy Segment in 2020 the Company delivered strong third quarter results in 2021. Renewable Energy orders increased to $6.6 billion or by 65% for the nine months of 2021, driven by Offshore Wind. Onshore Wind orders grew modestly, driven by services and international equipment. Revenues of $4.2 billion decreased by 7% due to Onshore Wind services. For the year 2021 the Company expects Renewable Energy revenue outlook to be roughly flat. Onshore Wind is going to be slightly positive but down year-over-year. Offshore Wind margins is going to remain negative.