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GE HA Gas Turbine Aids HEPCO to Start Commercial Operations

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General Electric Company’s (GE - Free Report) unit GE Power recently announced that its state-of-the-art gas turbine — the 9HA — has aided Hokkaido Electric Power Company’s (“HEPCO”) Ishikariwan-Shinko Power Plant Unit 1 to achieve the start of commercial operation. Notably, the plant, dubbed as HEPCO’s first liquified natural gas fueled thermal power plant, leverages General Electric’s 9HA.01 variant of its leading gas turbines, together with Toshiba Corporation’s (TOSYY - Free Report) steam turbine.

General Electric’s 9HA.01 will make the Ishikariwan-Shinko plant’s operations more efficient in the production of reliable energy in Hokkaido island. This will help in meeting the requirements of steady electricity for citizens and industrial customers across the island. In addition, the power plant will help HEPCO in modernizing its power infrastructure. Notably, this latest development highlights the strength of the company’s long-standing collaboration with Toshiba to offer advanced gas generation technology.

Our Take

General Electric intends to become more competent by focusing on core businesses. The company intends to strengthen its Power business, which dented its performance over the past few quarters. It is looking to resolve the external and internal challenges through better inventory and material management, product development and delivery, as well as billings and collections.

Notably, the Zacks Rank #3 (Hold) company’s share price has increased 21.8% on a year-to-date basis compared with 23.3% growth recorded by the industry.

Stocks to Consider

A couple of better-ranked stocks in the same space are United Technologies Corporation and Macquarie Infrastructure Company . Both these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United Technologies exceeded estimates in each of the trailing four quarters, the average being 14.87%.

Macquarie surpassed estimates twice in the trailing four quarters, the average being 0.51%.

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