PORT HURON, Mich., July 31 /PRNewswire/ -- Today, SEMCO ENERGY (NYSE: SEN)
reported on its earnings forecast for 2001 in a conference call with analysts
and investors broadcast on the Internet. The Company's management noted that
the analysts' current earnings per share consensus estimate for 2001 is
approximately $0.90. Management stated that the estimate does not reflect the
$0.06 per share impact of warmer weather during the second quarter or the
$0.08 per share impact of higher gas costs and lower transportation revenue
during the first half of the year. Management indicated it would be
difficult, if not impossible, to make up these items and suggested that the
total of $0.14 per share be factored out of current estimates.
Gas costs have been higher in 2001 as a result of purchasing gas with a
higher thermal content than anticipated. However, this trend is now
diminishing. Transportation revenue has declined because some of the
Company's industrial and large commercial customers reduced their
transportation volumes having switched to alternative fuels earlier in the
year due to high natural gas prices. The softening of the economy and general
conservation also contributed to the decrease in transportation revenue.
SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that
distributes natural gas to more than 367,000 customers in Michigan and Alaska.
It also owns and operates businesses involved in natural gas engineering and
quality assurance services, pipeline construction services, propane
distribution, intrastate pipelines and natural gas storage in various regions
of the United States. In addition, it provides information technology and
outsourcing services, specializing in the mid-range computer market.
The following is a "Safe-Harbor" statement under the Private Securities
Litigation Reform Act of 1995. This release contains forward-looking
statements that involve risks and uncertainties. Statements that are not
historic facts, including statements about the Company's outlook, beliefs,
plans, goals and expectations, are forward-looking statements. Factors that
may impact forward-looking statements include, but are not limited to, the
effects of weather, the economic climate, competition, commodity prices,
changing conditions in the capital markets, regulatory approval processes,
success in obtaining new business and other risks detailed from time to time
in the company's Securities and Exchange Commission filings.
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SOURCE SEMCO ENERGY, Inc.
Web site: http: //www.semcoenergy.com
CONTACT: Analysts Contact: Sebastian Coppola, Senior Vice President and Chief Financial Officer, +1-810-989-4101, or Media Contact: Francis R. Lieder, +1-810-987-2200, ext. 4186, fax: +1-810-989-4098, E-mail: email@example.com , both of SEMCO ENERGY, Inc.