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United States

GE Renewable Energy continues to operate at a loss

The conglomerate's renewables business posted its third straight quarterly net loss despite growth in revenue and orders.

Orders for GE Renewable Energy's 12MW Haliade-X offshore turbine are mounting up
Orders for GE Renewable Energy's 12MW Haliade-X offshore turbine are mounting up

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GE Renewable Energy saw its revenues in Q3 grow 13% year-on-year to $4.43 billion, while order income totalled $5 billion — up 30% on the same quarter of 2018.

For onshore wind, GE received 3.41GW of new business, a 56% increase on the same period a year ago. Meanwhile, it was named preferred supplier to deliver its 12MW Haliade-X offshore wind turbine for 4.8GW of offshore wind projects in the US and the UK.

Reporting Period Segment Profit / (Loss) Revenue
Q4 2018 $67 million $3,361 million
Q1 2019 ($162 million) $1,604 million
Q2 2019 ($184 million) $3,627 million
Q3 2019 ($98 million) $4,425 million

It is the third straight quarter of posting an operating loss. In Q1, GE Renewable Energy recording a segment loss of $162 million, followed by a further loss of $184 million in Q2.However, the business segment posted a operating loss of $98 million, compared to $116 million profit in Q3 2018.

The company explained the loss in Q3 was "driven by higher losses on legacy contracts, pricing, tariffs and increased R&D investment".

It was partly offset by "cost productivity and strong volume", the company added.

For the nine-month period between January and September, GE Renewable Energy saw orders income grow 22% to $12.2 billion and revenues increase 10% to $10.6 billion. Segment performance across the first nine months has fallen from a $312 million profit to a $469 million loss.

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