• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 3 hours WTI @ 67.50, charts show $62.50 next
  • 1 hour Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 hours Mike Shellman's musings on "Cartoon of the Week"
  • 7 hours Venezuela set to raise gasoline prices to international levels.
  • 12 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 1 hour Batteries Could Be a Small Dotcom-Style Bubble
  • 7 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 14 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 24 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 13 hours Corporations Are Buying More Renewables Than Ever
  • 2 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 18 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 4 hours France Will Close All Coal Fired Power Stations By 2021
Peak Lithium Won’t Happen Anytime Soon

Peak Lithium Won’t Happen Anytime Soon

Peak lithium is not happening…

Goldman: Trade War Won't Crash Oil Prices

Goldman: Trade War Won't Crash Oil Prices

In spite of the impact…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

GE Considers Selling Baker Hughes Assets

GE

General Electric is going through some serious changes in its core business structure, according to some news from CEO John Flannery, and is looking at selling off its Baker Hughes assets.

Activist investor Trian Partners had been vying for GE to simplify its business model.

"Complexity has hurt us," CEO John Flannery told investors. "We have not performed well for our owners. The management team is completely devoted to doing whatever it takes to correct that. Going forward, we really just have to focus on how we can create the most value from the portfolio of assets we have for our owners. We are going to do that with a very dispassionate eye."

GE "has constantly leveraged its technology strength to remake itself over time," the CEO said. "It has used its grip to move forward and reinvent the company and that's really where we are again today."

The American firm expects to sell off some key assets to continue its core operations – including selling off Baker Hughes from its conglomerate entity. Other assets that may find themselves on the chopping block are locomotives and industrial lighting.

"We want to maximize the value" of the Baker Hughes stake "for shareholders of our company," Flannery said. "Part of that might be, 'Is there is a different form for the structure/ownership of that asset?”

Related: Is Peak Permian Only 3 Years Away?

Bakes Hughes still holds some power over the fate of its corporate life, according to previous contracts. Through mid-2019, the sub-company still has a say over approval rights over its parent company’s planned actions, but GE is taking the energy market’s antics blow-by-blow.

"We see a protracted slowdown in the North American market," Flannery said, driven in part by a long-term slowdown in coal shipments. Still, "we have an excellent franchise. We're exploring the options we have with these assets. It may be a sale, it may be a spinoff."

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News