Despite warmer than normal weather during the quarter ended Dec. 31, 2001, AGL Resources Inc., led by results from its Sequent Energy Management subsidiary, reported earnings of $0.45 per basic and diluted share, compared with $0.41 per share for the same quarter of the prior year. AGL’s earnings also outdid Thomson Financial/First Call’s consensus of $0.43 per share.

The results reflect a 10% increase in earnings per share, despite weather that was 25% warmer than normal in the Virginia, Tennessee and Georgia service territories. Net income for the quarter ended Dec. 31, 2001 was $24.9 million compared with net income of $22.5 million for the equivalent quarter in 2000.

“Two years ago, we made the commitment to diversify our sources of income,” said Paula G. Rosput, CEO of AGL Resources. “Our Texas and Virginia operations are making solid contributions and our ability to identify wholesale asset optimization opportunities is growing.”

AGL Resources’ diversification strategy is already paying dividends. Despite the fact that the company’s distribution operations segment posted flat earnings during the quarter, Sequent Energy Management, the company’s wholesale services segment, contributed earnings before income taxes of $3.3 million ($0.04 per share). Sequent was non-existent during the similar quarter of 2000. At that time, the Sequent Energy subsidiary was still in its developmental stage.

Dick O’Brien, executive vice president of AGL Resources, called Sequent “clearly a success story” in its business for the quarter. “I think these results are further proof that we are aggressively identifying asset optimization opportunities even during periods of low market volatility.” During the quarter, AGL reported that Sequent’s trading volumes increased by approximately 300% as a direct result of the Enron situation.

AGL Resources said the remaining increase in its earnings during the quarter was a result of favorable interest rates and continued productivity improvements in the corporate organization.

As previously announced by the company, AGL Resources has changed the end of its fiscal year from Sept. 30 to Dec. 31, effective Oct. 1, 2001. This change created a stub period from Oct. 1, 2001 to Dec. 31, 2001, prior to the beginning of the company’s new fiscal year on Jan. 1, 2002. Looking ahead, the company estimates that earnings per share for the 12 months ending Dec. 31, 2002 will be between $1.65 and $1.72.

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