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SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC. REPORTS 2ND-QUARTER EARNINGS

SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC. REPORTS 2ND-QUARTER EARNINGS
 PORT HURON, Mich., Aug. 10 /PRNewswire/ -- Robert J. Thomson, chairman, president and chief executive officer of Southeastern Michigan Gas Enterprises, Inc. (NASDAQ-NMS: SMGS), announced that the company experienced a smaller second-quarter net loss for common shareholders of $380,000 ($0.04 per share) compared to a net loss of $1,788,000 ($0.21 per share) for the second quarter of 1991. The net loss during the quarter is normal because the company's primary business of natural gas distribution is dependent upon the winter months for a large part of its annual operating revenues.
 For the six-month period ended June 30, 1992, net income available for common increased to $6,348,000 ($0.72 per share), compared to $4,698,000 ($0.55 per share) for the same period in 1991. Net income for the 12 months ended June 30, 1992, increased to $8,951,000 ($1.03 per share) compared to $6,289,000 ($0.74 per share) for the 12-month period ended June 30, 1991.
 During the quarter, volumes of gas sold increased 28 percent over last year primarily because it was colder in 1992 than in the comparable quarter of 1991. The second quarter of 1992 was 32 percent colder than normal, whereas in 1991 it was 26 percent warmer than normal. Colder weather and the addition of approximately 5,000 customers were the primary factors leading to improved sales. Another element contributing to the improved results for the quarter over last year was lower interest expense due to lower interest rates.
 For the six months ended June 30, 1992, gas volumes sold were 9 percent higher than for 1991. Weather was 13 percent colder than last year and 5 percent colder than normal. In addition to the factors affecting the second-quarter results noted above, the year-to-date results for 1992 also include an extraordinary charge of $901,000 for the early extinguishment of debt; the company issued $25 million of 8-5/8 percent debentures which were used to reduce short-term debt and redeem $15 million of 11-1/2 percent debentures.
 For the 12-month period ended June 30, 1992, volumes sold were 7 percent higher and weather was 6 percent colder than the prior 12-month period.
 The following is a summary of the results for the quarter, yes) for common
 ($380,000) ($1,788,000)
 Earnings per share(a) ($.04) ($.21)
 Dividends per share(a) $.19 $.18
 Average common shares outstanding(a) 8,804,000 8,586,000
 Year-to-Date Ended June 30
 Operating revenue $129,010,000 $126,484,000
 Net income available for common
 before extraordinary item $7,249,000 $4,698,000
 Extraordinary item -- loss on early
 extinguishment of debt, net of tax ($901,000) ---
 Net income available for common $6,348,000 $4,698,000
 Earnings per share before
 extraordinary item(a) $.83 $.55
 Earnings per share(a) $.72 $.55
 Dividends per share(a) $.38 $.36
 Average common shares outstanding(a) 8,774,000 8,560,000
 12 Months Ended June 30
 Operating revenue $234,048,000 $228,465,000
 Net income available for common
 before extraordinary item $9,852,000 $6,289,000
 Extraordinary item -- loss on early
 extinguishment of debt, net of tax ($901,000) ---
 Net income available for common $8,951,000 $6,289,000
 Earnings per share before
 extraordinary item(a) $1.13 $.74
 Earnings per share(a) $1.03 $.74
 Dividends per share(a) $.76 $.72
 Average common shares outstanding(a) 8,714,000 8,505,000
 (a) -- Adjusted to give retroactive effect to 5-percent stock dividends in May 1991 and May 1992.
 Enterprises is the parent company of six wholly owned subsidiaries: Southeastern Michigan Gas Company (Port Huron); Battle Creek Gas Company (Battle Creek, Mich.); Michigan Gas Company (Three Rivers, Mich.); Southeastern Development Company (Port Huron); Southeastern Financial Services, Inc. (Port Huron); and SEMCO Energy Services, Inc. (Port Huron).
 Enterprises serves natural gas to approximately 204,000 customers in 23 counties in Michigan through its subsidiaries Southeastern Michigan Gas Company, Battle Creek Gas Company and Michigan Gas Company.
 -0- 8/10/92
 /CONTACT: Allan E. Peattie, manager, Investor Relations of Southeastern Michigan Gas Enterprises, Inc., 313-987-2200/
 (SMGS) CO: Southeastern Michigan Gas Enterprises, Inc. ST: Michigan IN: UTI SU: ERN


DH-SM -- DE015 -- 8612 08/10/92 15:26 EDT
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Date:Aug 10, 1992
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