GE's (NYSE: GE) Oil and Gas Sector Boosts Q4 Results
Oil and Gas Investments Show Promise
General Electric’s (NYSE: GE) foray into the oil and gas sector has returned good results; the company was able to see its net income go up 8 percent in Q4, while also tallying up $210 billion in backlogged orders.
Net income amounted to $4 billion, or 38 cents per share, resulting in a profit of 44 cents per share. Per-share prices for GE rose to $21.95, up 3.1 percent.
Under Jeffrey Immelt, GE has renewed focus on its industrial operations, such as industrial equipment, services to industrial businesses, etc., while forging ahead into providing equipment and support services to the oil and gas industry. That’s a smart move considering the ongoing oil and gas boom across North America driven by shale discoveries and explorations.
It’s that move that has proven key for GE in the latest quarter, with the company’s oil and gas, energy management, aviation, and transportation segments each posting growth higher than 10 percent, as USA Today reports.
GE’s net income based on total revenues of $147.4 billion was $13.6 billion for 2012, and both are expected to increase through 2013.
New contracts have been unveiled with Brazil’s Petrobras and Chevron’s (NYSE: CVX) Angola projects, and the company has received enough orders for jet engines to supply 50 airplanes for Alaska Airlines.