Although GE Vernova posted a net loss of $130 million in the first quarter, this was an improvement on the $315 million loss of the previous year. Sales rose by 6% to $7.26 billion. However, the adjusted loss per share was 41 cents, above analysts’ forecasts of 32 cents.
Optimism from management
GE Vernova CFO Ken Parks and CEO Scott Strazik expressed optimism for the future. Parks expects cash generation to improve as the year progresses, while Strazik highlights the company’s progress as an independent entity, well positioned to capitalize on the growing energy transition market.
Sector performance
GE Vernova’s Power division saw its orders increase by 25%, generating $5.03 billion thanks to the sale of gas turbines in Kentucky. Conversely, the Wind division saw a significant 40% drop in orders to $1.15 billion, mainly due to permit delays in the USA. Nevertheless, offshore wind power and services have shown growth.
Challenges and prospects
The Electrification Division also recorded a 10% drop in orders, to $3.57 billion. This decrease is attributable to lower sales of equipment for high-voltage DC installations. Despite these challenges, the company remains confident in its ability to navigate a changing market.
Despite the initial challenges, GE Vernova is showing signs of stabilization with growth potential in a transforming energy sector. Management remains positive about the company’s future in the energy transition.
