General Electric seals $400m Iraq power deal

GE-built technologies are today generating up to 50 percent of Iraq’s power. (Reuters)
Updated 22 November 2017

General Electric seals $400m Iraq power deal

LONDON: General Electric has signed a $400 million deal to develop Iraq’s power infrastructure as companies around the world continue to pitch for reconstruction work in the war-torn Middle Eastern nation.
The transaction aims to bring electricity to areas facing significant power outages, a legacy of years of conflict that has hobbled supplies in large swathes of the country.
GE said on Wednesday that the contract will help build 14 electric substations and supply critical equipment such as transformers, circuit breakers and other outdoor equipment to revamp existing substations.
The substations will hook up power plants in the provinces of Nineveh, Salahuddin, Anbar, Baghdad, Karbala, Al-Qadisiyah and Basra to the national grid.
Many areas in Iraq experience severe power cuts, despite billions of dollars spent since the 2003 US-led invasion.
Mussab Al-Mudaris, spokesperson of the Iraqi Ministry of Electricity said, “The agreement represents a major milestone in our efforts to strengthen Iraq’s power transmission sector, through a comprehensive grid project across the nation.
“Our focus remains on providing our people with the most reliable and advanced technology to meet their daily needs, and to accomplish this we need strong partners in this journey of development and reconstruction. GE has the technology, global capabilities and local presence to ensure the successful and sustainable execution of the project.”
Several of the locations, in conflict-affected areas, are in immediate need of reliable power infrastructure, according to GE.
GE said in a statement it has previously provided power generation equipment for some of the power plants that the substations will be connected to, including the three-gigawatt Besmaya Power complex.
Also included in the deal are the sale of nine 9FA gas turbines, four C7 steam turbines and a number of digital industrial applications — all GE products.
Mohammed Mohaisen, CEO of GE Power’s Grid Solutions business in the Middle East, North Africa and Turkey said, “A holistic approach to national infrastructure building is vital, from the provision of technical expertise to working with partners, such as export credit agencies, in securing long-term financial solutions.
“This agreement is a continuation of our firm commitment to driving industry and infrastructure forward in Iraq, working with the ministry of electricity in finding sustainable and effective solutions to some of the country’s most pressing issues.”
The current agreement builds on GE contributions toward strengthening Iraq’s power sector in years gone by. These include establishing captive power plants to provide power for industrial use, converting power plants from simple cycle to combined cycle configuration and the provision of services to improve the reliability and efficiency of operations generally.
The American company said GE-built technologies are today generating up to 50 percent of Iraq’s power, employing 300, more than 95 percent of whom are said to be Iraqi nationals.
Last month, the World Bank approved a $410 million aid package to bankroll the reconstruction of essential Iraqi infrastructure in areas liberated from Daesh. Iraq has estimated that the cost of reconstruction in the country, damaged by 14 years of war and civil strife could exceed $100 billion.


Huawei’s third-quarter revenue jumps 27% as smartphone sales surge

Updated 17 October 2019

Huawei’s third-quarter revenue jumps 27% as smartphone sales surge

  • American companies, significantly disrupting its ability to source key parts
  • Huawei was all but banned by the United States in May from doing business with American companies

SHENZHEN, SHANGHAI: Huawei Technologies Co. Ltd’s third-quarter revenue jumped 27%, driven by a surge in shipments of smartphones launched before a trade blacklisting by the United States expected to hammer its business.
Huawei, the world’s biggest maker of telecom network equipment and the No. 2 manufacturer of smartphones, was all but banned by the United States in May from doing business with American companies, significantly disrupting its ability to source key parts.
The company has been granted a reprieve until November, meaning it will lose access to some technology next month. Huawei has so far mainly sold smartphones that were launched before the ban.
Its newest Mate 30 smartphone — which lacks access to a licensed version of Google’s Android operating system — started sales last month.
Huawei in August said the curbs would hurt less than initially feared, but could still push its smartphone unit’s revenue lower by about $10 billion this year.
The tech giant did not break down third-quarter figures but said on Wednesday revenue for the first three quarters of the year grew 24.4% to 610.8 billion yuan.
Revenue in the quarter ended Sept. 30 rose to 165.29 billion yuan ($23.28 billion) according to Reuters calculations based on previous statements from Huawei.
“Huawei’s overseas shipments bounced back quickly in the third quarter although they are yet to return to pre-US ban levels,” said Nicole Peng, vice president for mobility at consultancy Canalys.
“The Q3 result is truly impressive given the tremendous pressure the company is facing. But it is worth noting that strong shipments were driven by devices launched pre-US ban, and the long-term outlook is still dim,” she added.
The company said it has shipped 185 million smartphones so far this year. Based on the company’s previous statements and estimates from market research firm Strategy Analytics, that indicates a 29% surge in third-quarter smartphone shipments.
Still, growth in the third quarter slowed from the 39% increase the company reported in the first quarter. Huawei did not break out figures for the second quarter either, but has said revenue rose 23.2% in the first half of the year.
“Our continued strong performance in Q3 shows our customers’ trust in Huawei, our technology and services, despite the actions and unfounded allegations against us by some national governments,” Huawei spokesman Joe Kelly told Reuters.
The US government alleges Huawei is a national security risk as its equipment could be used by Beijing to spy. Huawei has repeatedly denied its products pose a security threat.
The company, which is now trying to reduce its reliance on foreign technology, said last month that it has started making 5G base stations without US components.
It is also developing its own mobile operating system as the curbs cut its access to Google’s Android operating system, though analysts are skeptical that Huawei’s Harmony system is yet a viable alternative.
Still, promotions and patriotic purchases have driven Huawei’s smartphone sales in China — surging by a nearly a third compared to a record high in the June quarter — helping it more than offset a shipments slump in the global market.