Shares of Jereh Oilfield Services Group hit their daily trading limit after the company announced securing a $1.5 billion order to supply gas turbine generators to a prominent cloud services provider.
The company’s stock jumped 10 percent to close at 135.11 Chinese yuan (approximately $19.95) per share in Shenzhen today, marking a 91 percent increase since the end of last year.
J&F Power Systems, a joint venture between Jereh and FTAI Aviation, signed a five-year master sales agreement for gas turbine generator sets with an undisclosed client. The company received its first order under this agreement, which states that deliveries will be phased in and completed by November of next year, according to the company’s recent announcement.
The order’s value represents roughly 61 percent of Jereh’s audited revenue from the previous year. The company highlighted that executing this contract smoothly would positively contribute to its business performance.
This isn’t the first time this client has ordered gas turbine generators from Jereh. In total, the company has secured approximately $1.72 billion worth of business from this customer, based on recent disclosures.
The company did not disclose the buyer’s identity or the project location, citing confidentiality. However, it confirmed that the client has entered into similar agreements over the past 12 months. Earlier reports indicate that all major buyers have been technology firms based in North America.
The rising demand for computing power, driven by artificial intelligence training, has triggered a boom in U.S. data center construction, providing growth opportunities for Jereh’s gas turbine generator business.
The new contract underscores the client’s confidence in Jereh’s power supply solutions, product performance, and delivery capabilities. It also strengthens Jereh’s competitive position in the data center equipment market, boosting its global brand recognition and market competitiveness.
Since last November, this marks the seventh gas turbine generator contract that Jereh’s subsidiaries have signed with data center or AI-related clients, and it is by far the most lucrative.
Between November of last year and early April, Jereh’s wholly owned U.S. subsidiary, GenSystems Power Solutions, signed six sales agreements for gas turbine generators totaling over $1.1 billion with local data center and AI companies, including several contracts with the client behind this latest deal.