NEW YORK, March 6 (Reuters) - General Electric's ( GE )

energy spin-off, GE Vernova, on Wednesday said it expects to

clear a massive backlog in offshore wind equipment over the next

two years, signaling improved market conditions for the

beleaguered sector.

The company has faced an offshore wind equipment backlog

totaling some $4 billion over the past two years, executives

said during an investor day in New York.

"[The equipment backlog] will meaningfully convert to

revenue over the next two years," said GE Vernova CEO Scott

Strazik. "We will only add to that backlog with meaningfully

better economics and terms than what is in our backlog today."

The U.S. offshore wind industry has been hit with

cancellations and delays, and companies have faced hefty

writedowns as soaring inflation, interest rate hikes and supply

chain issues increased project costs.

"We're encouraged by the market," said GE Vernova Wind CEO

Vic Abate. "When you look at the tailwinds and offshore, I would

say there's a reset underway," he said.

GE's offshore wind business posted $1.1 billion in losses in

2023.

GE announced in November 2021 it would break up into three

companies focused on energy, aviation and healthcare. GE

Vernova, its energy business, is expected to be fully separated

from General Electric ( GE ) and begin trading on the New York Stock

Exchange on April 2.

On Wednesday, the company reaffirmed its expectation for GE

Vernova to generate revenue of $34 billion to $35 billion and

free cash flow of $700 million to $1.1 billion in 2024.

GE Vernova plans to tap into the $265 billion energy

transition market to improve margins in the troubled onshore

wind sector and also bolster profits in its gas power business,

Strazik said.

The energy transition market is expected to grow from $265

billion today growing to at least $435 billion by 2030, Strazik

told investors.

"The energy transition is the next investment supercycle,"

he said.