General Electric Co. (GE) - Get General Electric Company Report shares edged lower Thursday, following a weaker start for the S&P 500, after the group agreed a $1.2 billion power contract with the government of Iraq.
GE said late Wednesday that it's inked two new agreements with Iraq's Ministry of Electricity to strengthen the country's power infrastructure. One contract, valued at $500 million, will focus on maintenance of key power plants while the second, worth $727 million, will work towards reinforcing Iraq’s transmission network with the electricity grid of Jordan, GE said.
"GE has a long history in Iraq, and we continue to deliver on our promise to the nation and its people. In recent years, we have further accelerated our project execution to scale up and rebuild the country’s electricity infrastructure," said GE Power and Gas CEO Scott Strazik. "As demand for power increases in tune with a growing population and to support industries and developmental projects, identifying gaps and addressing them is our focal area. We are thankful to the Iraqi government for their confidence in our capabilities to deliver power where and when needed."
"The new agreements will contribute to a more reliable and stronger power infrastructure, which is the top priority of the government," he added.
GE shares were marked 1.1% lower in early trading Thursday to change hands at $6.30 each, a move that would extend the stock's year-to-date decline of around 44%.
Late last month, GE said revenues from GE Power, one of the group's biggest divisions fell 11.1% during its June quarter to $4.16 billion, but were far more resilient than those in Aviation, which fell 44% as global aircraft demand collapsed during coroanvirus travel restrictions and Boeing's BA 737 MAX remained grounded under FAA orders.
Overall group revenues, GE said, fell 38.5% from last year to $17.7 billion during the second quarter, a figure that topped analysts' forecast by around $700 million. Industrial free cash flow was also better-than-forecast, at -$2.1 billion from $-2.2 billion in the first quarter, and the conglomerate said it expected to be free-cash flow positive by next year.