Patrick Kron, ALSTOM’S
chairman and CEO told World-Generation during a visit to the US in December
that the financial rescue package of 3.2 billion euros “was now
fully approved and being implemented”. Short and medium funding
needs are covered and contract bonding is available for future needs,
sending a strong message to customers and suppliers that ALSTOM is a “long
term player”.
Kron’s market overview
projects a 3 percent CAGR until 2020. Deregulation is ongoing but meeting
cyclical difficulties in the US and Canada where merchant activity is
postponed. Latin America is facing regulatory obstacles. Kron sees European
markets opening as utilities consolidate and swallow up IPP’s. The
target of 12 percent production from renewables and CC PP and steam plant
efficiencies are being pushed aggressively by the EU. “Except for
China, Asia is adopting a ‘wait and see’ approach”,
Kron said adding that ALSTOM has a long track record of serving both private
and public clients in over 70 countries. He further projects infrastructure
needs in developing countries, replacement of existing infrastructure
in developed countries where over 24 percent of worldwide capacity exceeds
30 year life cycles.
“ALSTOM is in a good
position to leverage global presence,” Kron admitted because ALSTOM’s
number one market position in steam generators, turn key plants, and environmental
control systems lead the market. ALSTOM is number two in overall power
service.
Kron provided an update on
the status of the GT 24/26 fleet acquired from ABB. “ It’s
a difficult story with a positive ending,” Kron commented. “The
current performance levels are competitive, with 765,000 operating hours
and output returned to above guarantee values”.
POWER TURBO-SYSTEMS
Q3 04 is the highest quarter
in terms of order intake for eighteen months. The main order received
in Q3 was a turn key contract, valued at around 430 million euros, to
design and build a 1,200 MW GT26 based combined-cycle power plant in Cartagena
(Spain) for Gas Natural.
Under the terms of the contract,
ALSTOM will supply three single-shaft power trains each composed of one
GT26 gas turbine, heat recovery steam generator, steam turbine and electrical
generator as well as the overall power plant control system. The plant
is scheduled for completion in 2006.
ALSTOM has already completed
two GT26 based combined-cycle power plants for Gas Natural, which are
currently in operation. This confirms the success of the recovery programme
and ensures ALSTOM is again present in this segment with a competitive
product,” Kron said.
On a comparable basis, orders
in the first nine months of 2004 decreased by 9% as compared to the same
period of last year. The level of sales reflects the declining order volumes
over the past two years.
POWER ENVIRONMENT
The level of order intake
in Q3 04 is the highest in two years. Main orders received included a
Euro 250 million contract for Sudan, where we will provide ten 125 MW
hydroelectric turbines and generators, and an environmental control system
(FGD) for Duke Energy in the US (Euro 130 million). The orders received
in the first nine months are 12% up on the same period of the previous
year.
POWER SERVICE
Order intake in Q3
04, over 1 billion Euro, was at a record level. For the first nine months
of 2004, orders have increased by 8% compared with the same period of
the previous year, confirming the continued growth of this activity.
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