CMS Energy said it completed its exit from the Australian energy industry with the sale of its interests in the Parmelia and Goldfields pipelines in western Australia to the Australian Pipeline Trust for about US$147 million (AU$206 million), or about $2 million more than prior estimates.

It is CMS Energy’s second major asset sale in Australia this year. In April, CMS Energy and its partners sold the 2,000 MW Loy Yang power plant and adjacent coal mine in Victoria to an international consortium. With completion of the pipelines sale, CMS said it has exceeded this year’s plan for asset sales. Sale proceeds will be used to reduce debt.

CMS was the sole owner of the 260-mile Parmelia pipeline system and held a 39.7% ownership interest in the 860-mile Goldfields system. The Australian Pipeline Trust previously owned 48.5% of Goldfields.

Earlier this month, CMS beat Wall Street estimates of second quarter earnings by reporting $16 million in net income, or 10 cents a share, versus a net loss of $65 million, or 45 cents a share, a year ago. CMS posted a $19 million gain from continuing operations versus a $12 million loss a year ago. CMS said that because of favorable asset sale proceeds and timing it now expects to break even in 2004 versus its previous expectation of a loss of 35 cents a share.

Along with many other energy companies that previously focused on the merchant energy business, CMS has undergone a significant transformation and a back to basics strategy that now focuses on its core Consumers Energy utility business in Michigan.

“We’ve resolved a number of business challenges over the past year as we’ve continued our strategy of focusing on our core utility business, complemented by non-regulated businesses that have a similar profile for predictable earnings,” CEO Ken Whipple said earlier this month. “We still have a number of business and regulatory challenges ahead of us. We’ll tackle those at the same time we’re taking care of our main priorities: Customer satisfaction, operational excellence, financial flexibility, and debt reduction.”

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