MCN Energy Group’s plan to shed exploration and productionoperations drained gallons of red ink from its 1998 bottom line,about $273 million worth. Still the company finished the year witha net loss. MCN reported a net loss of $6.2 million, compared withearnings of $112.2 million in 1997. Including results from theE&P unit – discontinued in anticipation of sale – MCN reporteda net loss for 1998 of $279 million, compared with earnings of$142.3 million in 1997. All figures include special charges.

“We have learned some key lessons from our difficulties in 1998and we are putting those problems behind us, said CEO Alfred R.Glancy III. “We have a refocused strategic direction designed torebuild shareholder value and we are confident it will put MCN backon track to achieving strong financial performances.”

Including the company’s share of joint venture operations, gastransportation volumes were 175.5 Bcf in 1998, compared with 116.0Bcf in 1997. Gas processing volumes rose to 48.9 Bcf from 42.8 Bcfthe previous year.

Electricity sales more than doubled to 3.8 million MWh from 1.8million MWh in 1997. Gas sales and exchange deliveries rose 30% to465.7 Bcf from 358.8 Bcf in 1997, with significant volume increasesin each market region. However, increased volumes were offset byreduced margins and increased gas storage costs.

The Gas Distribution group added 20,000 retail sales customers.Sales volume increases represented by the new customers werelargely offset by reduced per capita consumption due toconservation efforts.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.