Munich-based Siemens had been close to securing a contract to supply 11 gigawatts of power-generation equipment to Iraq, a deal worth about $15 billion, but then the Trump administration intervened on behalf of GE, the Financial Times reported, citing unnamed people familiar with the matter.
The Trump administration reportedly pressured the Iraqi government, and now "GE is expected to take a substantial share of the sale," the Financial Times said.
GE declined to comment.
Shares of GE rose 1.6% to $12.29 at 9:30 a.m. New York time. The stock has fallen about 32% year to date as the beleaguered industrial conglomerate has struggled with challenges to its power business.
The contract with Iraq would mark a significant victory for GE's troubled power unit, which has experienced declining profit over the past couple of years and recently disclosed that the power business will take a goodwill charge of nearly $23 billion, although it noted the final amount was "not yet finalized and remains subject to review."
Earlier this month, credit ratings giant Moody's Investors Service put its A2 credit rating for GE on review for possible downgrade.
"Among the range of issues that Moody's will consider is the impact on GE's earnings and cash flow prospects of the continuing deterioration in its Power business, which is likely to persist for some time," Moody's said. "The dimmer prospects for GE Power take on heightened importance given the loss of free cash flow from GE's planned divestitures, including the highly cash generative GE Transportation and GE Healthcare."
The Boston-based company announced last Friday it would be delaying its third-quarter earnings by five days, and will now report on Oct. 30 to let the newly appointed CEO Larry Culp complete initial business reviews and site visits.
Culp is expected to share his initial observations on the third-quarter conference call, "with more detail expected in early 2019," GE said.
GE is expected to report earnings of 20 cents a share on revenue of $29.7 billion, according to FactSet.