Semco Energy announced the resignation of its chairman, president and CEO, Marcus Jackson, Wednesday, after its board determined that new leadership is needed because the company has not reached certain financial goals. Semco shares rose 2.4% to $5.03 on the news.

Jackson will be succeeded on an interim basis by Eugene N. (Gene) Dubay who previously served as a vice president of the company and senior vice president and COO of its gas unit. Lead director John Hinton will serve as non-executive chairman. CFO John Schneider will assume responsibility for a broad range of administrative functions. In the meantime, the board will search for a permanent successor to Jackson.

Jackson, 52, has led the company since June 2001, “a point in time when the company was already dealing with significant strategic, operational and financial issues,” he said in a statement. “We have made some progress in addressing those issues over the past two years, but not nearly as much progress as the board and I had anticipated. Accordingly, with a clear strategic path and focus on the core gas distribution business that position the company for long-term strength and success, the time has come for Semco to move forward under new leadership.”

Jackson recently announced the company’s decision to seek a buyer for its pipeline construction business. Other significant actions Semco has taken under his leadership include the pending sale of Alaska Pipeline Co. to Atlas Pipeline Partners for $95 million, the successful closing of $155 million of syndicated credit facilities, and the successful completion of rate cases in both Alaska and Michigan.

Semco’s 2003 guidance calls for earnings of 18-23 cents/share, which is down from prior expectations of 30-35 cents/share. Wall Street analysts expect the company to earn 20 cents/share this year and 30 cents/share in 2004. The company earned 48 cents/share in 2002, had a loss of 35 cents/share in 2001 and reported 90 cents/share in earnings in 2000.

Semco distributes gas to 385,000 customers in Michigan and Alaska. It also owns and operates pipeline construction services, propane distribution and intrastate pipelines and natural gas storage in various regions of the United States.

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