General Electric (NYSE: GE ) has spent billions of dollars over the past two to three years assembling an oil and gas services business to rival incumbent oil-services giants such as Schlumberger and Halliburton. Now, it's beginning to pay off for GE.
GE announced Tuesday that its new oil and gas business has won a $500 million contract to supply turbomachinery equipment and services to Brazil's Petrobras (NYSE: PBR ) for use in deepwater drilling. The services will be provided to four new floating production, storage, and offloading facilities, designated FSPOs P-74, P-75, P-76, and P-77, in the Cessao Onerosa region of the Santos Basin pre-salt fields, off the coast of Sao Paulo.
The specific equipment being sold includes 16 PGT25+ gas turbines and electric generators, eight turbocompression trains powered by LM2500+ gas turbines, and 32 electric motor-driven compressors for moving gas through pipelines and injecting CO2 into gas wells to aid in gas extraction.
Shares of GE nonetheless followed the market down this morning, before managing to close with a slight 0.38% gain. The stock finished the day at $21.20.