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AGL Makes Good In Fiscal Third Quarter

AGL Makes Good In Fiscal Third Quarter

AGL Resources' fiscal third quarter marks the third consecutive quarter the company has exceeded analysts' predictions. The results also signify the first steadily increasing earnings trend after becoming the first gas utility to completely exit the gas merchant function.

AGL now focuses completely on delivery through its Atlanta Gas Light Co. subsidiary (AGLC), and retail energy marketing through its Georgia Natural Gas Services (GNGS) subsidiary (see NGI, June 28, 1999).

The company generated a net income of $13.9 million with an earnings per share of 26 cents for the fiscal third quarter that ended June 30. Over the same period last year, AGL posted a net income of $7.2 million and earnings per share of 12 cents. For the nine month period that ended June 30, net income for the company rose to $53.7 million, a 14% increase over last year's $47.3 million. Earnings per share at 97 cents, were up 15 cents over the last 9 month period.

The company points to its improvements in operating costs, system modernization, growing customer base at AGLC and continued efficiencies by GNGS, as the reasons for the strong results in Georgia's fully competitive gas markets.

"This performance is particularly rewarding because it shows we are now gaining real traction in creating value in both distribution and marketing services in competitive markets," said Walter M. Higgins, CEO of AGL. "Our customer satisfaction results are up, our employees are delivering great results, and our marketing business is gaining profitable market share - all critical elements to success in a competitive gas industry."

Alex Steis

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