((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Rewritten entire text to add details about the conference call) by Mrinalika Roy and Tanay Dhumal
GE Vernova GEV.N reported a rise in fourth-quarter profit on Wednesday as the growing need for reliable energy boosted demand for gas turbines and equipment and services for power grids.
The company’s gas turbine orders doubled in 2024 and have been linked to growth in U.S. electricity load, partly fueled by data center demand.
Meanwhile, increased investments in grid strengthening benefited GE Vernova’s electrification segment.
Overall, its quarterly net profit more than doubled to $484 million.
The gas and network equipment order book is expected to increase significantly in 2025 with better margins, the company said.
“The world is evolving, relying more on electrons and megawatts. This is changing the energy landscape and leading to increased demand for our equipment and services,” CEO Scott Strazik said in a phone call after publication of results.
However, orders for the company’s wind segment, which provides turbines, blades and services, fell about 41% during the quarter, hurting overall revenue, which did not did not reach the estimates.
-The company was cautious in its forecast for the wind sector, saying it expected organic revenue to be down a mid-single digit percentage.
“We remain cautious about the timing of the North American ground order inflection as customers continue to face increasingly long interconnection queues and higher interest rates” , said a company executive.
The company expects core profit from its wind segment to improve in the second half of the year.
MORE OPPORTUNITIES FOR NUCLEAR
Sixty-five nuclear power plants currently use GE Vernova technology in the United States.
The company is in talks to add megawatts to existing plants.
“Customer interest, not only in the United States, but also outside the United States, is only intensifying,” said a senior company executive.
“Last week, we also announced a joint effort with several major U.S. utilities to accelerate the deployment of its small modular nuclear reactor.”
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