Lowers

Offshore drilling contractor Global Marine reported Monday that the company’s worldwide Summary of Current Offshore Rig Economics, or SCORE, for August 2001 was down 3.2% from July because of a softening in Gulf of Mexico day rates that overshadowed the strength of the international offshore rig markets. In the Gulf of Mexico, the change was more dramatic, down 11.6% from a month earlier, and down 21.3% from a year ago.

Due to “overstated” revenues at its SouthStar retail marketing joint venture, AGL Resources Inc. has revised its earnings guidance for fiscal year 2001 to between $1.49 and $1.51 per share, from the current First Call consensus of $1.55 per share. SouthStar Energy Services LLC is a partnership among AGL Resources, Piedmont Natural Gas and Dynegy Inc.

Due to a revenue recognition issue at its SouthStar retail marketing joint venture, AGL Resources Inc. reported that it is revising its earnings guidance for fiscal year 2001 to between $1.49 and $1.51 per share, from the current First Call consensus of $1.55 per share. SouthStar is a partnership among AGL Resources, Piedmont Natural Gas and Dynegy Inc.

Industrial demand for natural gas is off about 6% from this time last year, a contributing factor to the continuing decline in gas prices, according to Energy and Environmental Analysis (EEA), an Arlington, VA-based consulting firm.

Columbia Gas of Ohio reported on Wednesday that its customers will see “significantly lower” natural gas prices on their August bills, reflecting the nationwide decrease in gas prices over the past few months. The company said that beginning in August it will reduce its gas cost from 87 cents to 60 cents per 100 cubic feet, representing a drop of about 32%.

KeySpan Corp. (KSE) revealed that it will be taking a $30 million after-tax second quarter charge, or 22 cents per share, against earnings to tie up some recently discovered loose ends on several construction projects of its Roy Kay Companies subsidiary, which it purchased last year. CEO Robert Catell also said the recent declines in gas and power prices have forced a downward revision in full-year results for the company.

UBS Warburg analyst Ronald J. Barone said in a research note on Friday that he was once again “compelled” to lower his natural gas spot price forecast because of the continuing decline in gas prices and the rapid rise in gas storage levels.

KeySpan Corp. (KSE) revealed yesterday that it will be taking a $30 million after-tax second quarter charge, or 22 cents per share, against earnings to tie up some recently discovered loose ends on several construction projects of its Roy Kay Companies subsidiary, which it purchased last year. CEO Robert Catell also said the recent declines in gas and power prices have forced a downward revision in full-year results for the company.

Reflecting the nose-dive in wholesale prices, Southern California Gas Co. in July whacked its retail prices to residential and small business customers by 48%, dropping from 52.1 cents/therm in June to 27 cents this month.