Please ensure Javascript is enabled for purposes of website accessibility

General Electric Signs $600 Million in Brazilian Contracts

By Rich Smith - Apr 3, 2013 at 5:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Company will provide propulsion systems for Petrobras-run drillships.

General Electric (GE -1.25%) has done it again. Hard on the heels of its massive $500 million contract win in January, when the company was contracted to supply Petrobras (PBR -12.48%) (PBR.A -13.58%) with gas turbines and electric generators for use in a new pre-salt offshore oil project, GE announced multiple contract wins for further equipment to multiple customers, totaling $600 million in value.

According to the company, the contracts in question were signed over the past 12 months and pertain to "propulsion systems" sold to customers drilling in the pre-salt oilfields off Brazil's eastern coast. The systems in question "will power, propel, navigate, position, and control" 22 out of 29 drillships operating in the area "and also power and control the drilling process itself." And once again, GE singled out Petrobras as its primary customer on these contracts.

In a statement, GE noted that the pre-salt area in question is located as far as 300 kilometers from the Brazilian coast, in "rock formations up to 5 km below the seabed and in water depths of up to 2,000 meters." GE added: "The pre-salt layer holds an estimated 10-16 billion barrels of oil equivalent."

GE shares didn't respond to the news, however, instead declining 1.5% to close at $23.00.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

General Electric Company Stock Quote
General Electric Company
GE
$74.52 (-1.25%) $0.94
Petroleo Brasileiro S.A. - Petrobras Stock Quote
Petroleo Brasileiro S.A. - Petrobras
PBR
$14.23 (-12.48%) $-2.03
Petroleo Brasileiro S.A. - Petrobras Stock Quote
Petroleo Brasileiro S.A. - Petrobras
PBR.A
$12.98 (-13.58%) $-2.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
334%
 
S&P 500 Returns
117%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.