AGL Resources’ fiscal third quarter marks the third consecutivequarter the company has exceeded analysts’ predictions. The resultsalso signify the first steadily increasing earnings trend afterbecoming the first gas utility to completely exit the gas merchantfunction.

AGL now focuses completely on delivery through its Atlanta GasLight Co. subsidiary (AGLC), and retail energy marketing through itsGeorgia Natural Gas Services (GNGS) subsidiary (see Daily GPI, June 25, 1999).

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

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

“This performance is particularly rewarding because it shows weare now gaining real traction in creating value in bothdistribution and marketing services in competitive markets,” saidWalter M. Higgins, CEO of AGL. “Our customer satisfaction resultsare up, our employees are delivering great results, and ourmarketing business is gaining profitable market share — allcritical elements to success in a competitive gas industry.”

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