Andritz Bets on Sea-Floor Turbines, Doubling Profit Per Share by 2014

Andritz AG, the world’s second- biggest maker of hydropower plants, is wagering that turbines installed on ocean floors will supply a portion of future energy use, Chief Executive Officer Wolfgang Leitner said.

Andritz expects its investments in such new-energy technologies will increase profit, he said today at a briefing in Vienna. The Graz, Austria-based company is looking to provide venture capital to start-up companies as it seeks to more than double earnings per share by 2014 to 4.15 euros, he said.

“Everyone is looking for new renewable energy technologies and resources,” Leitner said. “Ocean turbines have a number of advantages, including being out of eyesight and providing predictable energy generation.”

The Austrian company in August acquired a 33 percent stake in Hammerfest Strom SA, the Norwegian tidal-technology developer installing a 1-megawatt tidal-stream turbine off Scotland’s coast.

Spain’s Iberdrola SA and Norway’s Statoil ASA are also investing in the project, which will install a test turbine next year at the European Marine Energy Center in Orkney, Scotland.

Andritz shares rose as much as 2.4 percent to a 3-year high in Vienna, to 53.74 a share at 12:46 a.m. local time. The company said it wants to raise its dividend payout ratio to 60 percent from 50 percent by 2014.

France’s Alstom SA is the world’s biggest maker of hydropower plants.

To contact the editor responsible for this story: Jonathan Tirone at jtirone@bloomberg.net

To contact the editors responsible for this story: Peter Torday at ptorday@bloomberg.net;

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