WRAPUP 1-Alt energy results mixed: solar shines, fuels flop
(Wraps earnings from LDK Solar, Pacific Ethanol, Rentech and Metabolix)
*LDK Solar profit beats estimates, stock up 19 percent
*Pacific Ethanol loss wider than expected, shares slide
*Rentech, Metabolix losses widen on development costs
LOS ANGELES, Aug 11 (Reuters) - Alternative energy companies posted mixed results on Monday as LDK Solar Co Ltd's (LDK.N) quarterly earnings tripled on soaring demand for solar power, while Pacific Ethanol Inc (PEIX.O) reported a wider-than-expected loss on surging corn prices.
LDK shares soared 19 percent in extended trade as its profit and revenue blew past estimates as a manufacturing capacity expansion allowed the company to meet surging demand in Spain, where key government subsidies will be rolled back later this year. The Chinese solar wafer maker also raised its 2008 sales and shipment forecasts.
Pacific Ethanol, meanwhile, said a 67 percent jump in corn prices and surge in the cost of natural gas more than offset a 74 percent rise in the Sacramento, California company's sales. Its shares slid 13.5 percent to close at $2.05 on Nasdaq.
LDK and other solar power companies have enjoyed rapid growth as rising fossil fuel prices and concerns about global warming have spurred demand for renewable energy sources.
Ethanol makers, however, have struggled this year as higher corn prices have squeezed margins for the fuel, offsetting the growing demand from U.S. government mandates that require gasoline marketers to increase their use of ethanol.
Also on Monday, alternative fuel and plastics companies Rentech Inc (RTK.A) and Metabolix Inc (MBLX.O) recorded wider net losses due to higher costs for developing their products.
LDK's second-quarter net income rose to $149.5 million, or $1.29 per American Depositary Share, from $49.8 million, or 45 cents per ADS, a year ago.
Excluding the change in fair value of prepaid forward contracts, the company earned 82 cents a share, according to Reuters Estimates. Wall Street analysts had been expecting earnings of about 40 cents a share.
In recent months, investors have shunned solar stocks due to fears that an expected pullback in Spain's generous solar subsidies could hamper demand.
ThinkPanmure analyst Peter Peng said much of the second-quarter demand for LDK's solar wafers likely came from Spanish solar system installers who are scrambling to finish projects before a cap on subsidies goes into effect.
"There is a pull for the Spanish integrators to get projects in by September, but even beyond that most of these solar companies are seeing very, very strong demand for 2009," Peng said. "There is a possibility that Germany, Italy and potentially France and other smaller markets could offset the loss of market size in Spain." Continued...
