By VITA BEKKER
HUECKELHOVEN, Germany, November 28, 2000 (Bloomberg)– Umweltkontor Renewable Energy AG, a German renewable energy company whose shares have tripled since September, said nine-month profit rose more than six times because of higher demand for wind power.
Profit rose to 1.84 million deutsche marks ($805,400) from 271,000 marks the same period last year. Sales rose to 69.3 million marks from 18.7 million marks in the year-ago period, it said.
Renewable energy companies are benefiting from a German law subsidizing more environmentally friendly forms of energy, while higher oil prices are prompting consumers to seek cheaper alternatives. Umweltkontor plans to invest more than 60 million marks to broaden its renewable energy business and expand abroad.
“In the coming months we will embark on expanding our services in the hydroelectric, solar and bio-mass energy fields abroad,” Chief Executive Heinrich Lohmann said on a company conference call. In the first nine months, the company expanded in Spain, he said.
Still, the shares fell 3 euros, or 4.4 percent, to 65 euros, valuing the company at 507 million euros ($431.5 million). The stock has risen about six times since debuting in July, while the Nemax Technology Index has fallen 29 percent.
The company said it more than tripled its investment in wind parks in the first nine months to 28.7 million marks from 8.5 million marks last year. The company also boosted its workforce to 66 people from 25 people in the same period last year.
Umweltkontor last week raised its 2000 earnings forecasts. It expects operating profit of 12 million marks, about a third more than forecast earlier, while sales probably will rise to 157 million marks instead of 120 million marks.
In the first nine months, the company earned 0.42 marks per share. It didn’t report earnings per share for the same period a year earlier.
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