General Electric Expects $1 Billion Loss in Offshore Wind Sector
General Electric (GE) anticipates that its offshore wind operations will incur annual losses of approximately $1 billion for the current and upcoming years, as the company faces growing challenges due to rising costs.
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During a conference call with analysts on Tuesday, Larry Culp, the CEO of the company,
explained that “our offshore wind operations continue to face challenges
this year with losses estimated at $1 billion,
and similar losses are expected in the next year,
but with a significant improvement in financial performance.”
These statements come as companies in the offshore wind
development sector confront increasing challenges,
including disruptions in supply chains, higher component costs, and rising interest rates,
potentially leading to project delays and increased demand for turbines.
Nonetheless, there are bright spots for General Electric,
such as the successful installation of the first turbine of the “Haliade-X” model produced by the company
in southern Massachusetts as part of an ongoing project.
Concluding his remarks, Culp affirmed, “We are carefully studying many of the challenges
that need to be addressed, and we recognize that the industry has the potential for recovery.”
The company is expected to separate its operations in the energy
and renewable energy sector next year, adopting the name “GE Vernova.”
General Electric Expects $1 Billion Loss