Connecticut Energy announces 1994 earnings.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--Nov. 1, 1994--Connecticut Energy Corp. (NYSE:CNE) today reported earnings for fiscal 1994 which ended Sept. 30.

Earnings per share were a record $1.58, up five percent from the $1.50 per share earned in fiscal 1993, even with the issuance of one million new shares of stock.

"Fiscal 1994 marks the fifth consecutive year in which we met our goal to achieve solid and steady growth in earnings," stated J.R. Crespo, chairman, president and CEO. "This was accomplished through targeted marketing efforts, implementation of new base rates and continued attention to cost containment.

"We added over 2,500 new residential heating customers to our system and realized significant growth in firm commercial and industrial load additions," stated Crespo. "Our subsidiary, The Southern Connecticut Gas Company (Southern), implemented a rate case settlement designed to increase base rates by 6.6 percent in December 1993. In addition, we completed the consolidation of two autonomous operating centers into one central facility, which improved operating efficiencies and productivity.

"The volumes of gas distributed for the year reached a record level of 33.2 billion cubic feet," continued Crespo, "resulting in total throughput which was 13 percent higher than the previous record set in 1992. Although our firm customer base continued to be the foundation of our revenue and margin growth, sales and service to non-firm customers made a significant contribution to the increase in margins in 1994."

Southern provides natural gas service to more than 152,000 customers in Fairfield, New Haven and Middlesex counties. Connecticut Energy has the longest continuous dividend paying record (144 years) of any utility or any nonfinancial company listed on the New York Stock Exchange. -0-

Connecticut Energy Corp.
Principal Items
(Dollars in thousands, except per share)

                        Twelve Months        Three Months
                           Ending              Ending
                          Sept. 30,           Sept. 30,
                        1994      1993      1994     1993

Revenues             $240,873   $212,762  $ 25,486  $ 23,207
Gross margin         $114,003   $ 99,717  $ 13,275  $ 11,810
Net income (loss)    $ 12,843   $ 11,053  $ (4,570) $ (4,228)
Net income (loss)
 per share           $   1.58   $   1.50  $  (0.53) $  (0.57)
Weighted average
 common shares
 outstanding        8,134,021  7,377,419 8,664,277 7,456,942

CONTACT: Connecticut Energy Corp., Bridgeport

Judith E. Falango, 203/382-8156