General Electric’s footprint on the energy world could soon look substantially several as the conglomerate embarks upon a transformation plan declared on Monday.
The company intends to remain available of supplying power plants with equipment and services, a business it dominates alongside German rival Siemens. But GE could exit the oil and gas industry, and its own role in renewable energy remains somewhat uncertain.
Shares of GE closed about 7 percent lower on Monday.
The rise of solar and wind energy has generated challenges for GE’s power business, which is focused on selling and servicing the turbines and additional equipment at the heart of organic gas- and coal-fired plants. GE and Siemens are selling fewer of the systems, raising questions about their capability to capitalize on lucrative service contracts.
“Our power organization is a challenged organization at this time. We’ve got a lot of work to accomplish,” stated GE CEO John Flannery throughout a conference ask Monday.