Additional revenues from services and maintenance contracts mooted
General Electric is reportedly pushing to derive more revenue from the services and maintenance portion of a power facility, rather than focussing purely on turbines and their components. Although the full scope of the push has yet to be determined, the group may, for example, include diagnostics services for ancillary equipment such as transformers or switch gear.
According to reported comments from Ricardo Artigas, chief executive of the energy services arm, the business section is expected to post double-digit sales growth into the foreseeable future. said that the company hasn’t yet determined the full list of new offerings. But one example would be to provide diagnostics on transformers located outside the plant itself.
In 1997, total revenue for GE’s energy unit was about $8 billion, of which some 40% was contributed by energy services work. This year, revenue is expected to be about $20 billion, with about 55% from services. GE aims to ship about 120 new turbines over the year, equating to some $3 – $4 billion in future service revenue.