• 8 hours Did U.S. just start war with China? $60 Billion tariff package coming fast
  • 4 hours Surprise! Aramco Scraps International Listing Plans
  • 4 hours Self-Driving Cars' First Fatality
  • 4 hours The Facebook/Cambridge Analytica Scandal
  • 8 hours Goldman Sachs Expects Tesla to Miss Model 3 Targets Again
  • 2 hours API Inventory Data (Tuesdays)
  • 4 hours McDonald's Sets Greenhouse Gas Reduction Targets
  • 10 hours Flying Taxis In New Zealand - Very Soon?!
  • 5 hours Trump Bans Venezuelan National Cryptocurrency
  • 6 hours Why do Driller stocks move with the daily price of oil?
  • 7 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 4 hours Why Is The EU Spending Billions On A Gas Pipeline If It Wants To Fight Climate Change?
  • 1 day Is Trump Harming Oil Industry?
  • 1 day Tillerson just sacked ... how will market react?
  • 41 mins Why Are Investors Ignoring China's Oil Giant?
  • 7 days Terminator plans to sue big oil for 'first degree murder'
Energy Sector Under Threat From Deadly Cyberattacks

Energy Sector Under Threat From Deadly Cyberattacks

Investigators are warning that hackers…

Is It Time To Abandon Oil Stocks?

Is It Time To Abandon Oil Stocks?

It has been a wild…

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


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