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SOUTHEASTERN MICHIGAN GAS ENTERPRISES REPORTS THIRD-QUARTER EARNINGS

 PORT HURON, Mich., Nov. 5 /PRNewswire/ -- Ward N. Kirby, president and chief executive officer of Southeastern Michigan Gas Enterprises, Inc. (NASDAQ-NMS: SMGS), announced that the company experienced a third- quarter net loss for common shareholders of $2,433,000 ($.25 per share) compared to a net loss of $2,335,000 ($.25 per share) for the third quarter of 1992. A net loss for the third quarter is normal as the company earns most of its revenues during the winter heating months.
 Earnings for the nine-month period ended Sept. 30, 1993, increased to $5,263,000 ($.55 per share) from $4,013,000 ($.43 per share) for the same period in 1992. Included in net income for 1992 is an extraordinary charge of $901,000 ($.10 per share) for the early redemption of 11 1/2 percent debentures.
 For the 12 months ended Sept. 30, 1993, the company reported net income of $9,561,000 ($1.01 per share) compared to $8,388,000 ($.91 per share) for the same period ended Sept. 30, 1992. The 1992 results include the extraordinary item discussed above.
 The improvement in year-to-date earnings, before the extraordinary item, results primarily from improvements in the earnings of the company's natural gas distribution operations.
 During 1993, temperatures in the company's natural gas distribution territories were slightly warmer than during 1992. However, the addition of approximately 5,000 new gas sales customers contributed to an overall increase in volumes sold during 1993 compared to the same nine-month period in 1992.
 Natural gas marketing earnings also improved during 1993 primarily as a result of an increase in volumes marketed.
 The year-to-date improvement in earnings from natural gas sales and gas marketing operations was partially offset by increases in income taxes and property taxes. In addition, other income decreased in 1993 compared to 1992 as a result of losses from the company's investment in the NOARK Pipeline System.
 The comparative 12 months-to-date results primarily reflect the factors discussed above including the extraordinary charge in 1992.
 The following is a summary of the results for the quarter, year-to- date and 12 months ended Sept. 30:
 SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
 Quarter Ended Sept. 30 1993 1992
 Operating revenue $40,451,000 $39,100,000
 Net income (loss) for common ($2,433,000) ($2,335,000)
 Earnings per share(A) ($.25) ($.25)
 Dividends per share(A) .20 .19
 Average common shares outstanding(A) 9,560,000 9,303,000
 Degree days - actual 265 298
 Gas sales customers - average 209,448 203,704
 Year-to-Date Ended Sept. 30
 Operating revenue $192,617,000 $168,111,000
 Net income available for common
 before extraordinary item $5,263,000 $4,914,000
 Extraordinary item - loss on early
 extinguishment of debt, net of tax --- ($901,000)
 Net income available for common $5,263,000 $4,013,000
 Earnings per share before
 extraordinary item(A) $.55 $.53
 Earnings per share(A) $.55 $.43
 Dividends per share(A) $.58 $.55
 Average common shares outstanding(A) 9,492,000 9,492,000
 Degree days - actual 4,610 4,668
 Gas sales customers - average 209,846 204,068
 12 Months Ended Sept. 30
 Operating revenue $276,032,000 $239,993,000
 Net income available for common
 before extraordinary item $9,561,000 $9,289,000
 Extraordinary item - loss on early
 extinguishment of debt, net of tax --- (901,000)
 Net income available for common $9,561,000 $8,388,000
 Earnings per share before
 extraordinary item(A) $1.01 $1.01
 Earnings per share(A) $1.01 $.91
 Dividends per share(A) $.77 $.73
 Average common shares outstanding(A) 9,460,000 9,210,000
 Degree days - actual 6,959 7,009
 Gas sales customers - average 209,170 203,577
 (A) -- Adjusted to give retroactive effect to 5-percent stock dividends in May 1993 and May 1992.
 Enterprises distributes and transports natural gas to approximately 210,000 customers in 23 counties in Michigan through its subsidiaries Southeastern Michigan Gas Company, Battle Creek Gas Company, and Michigan Gas Company. The company also has operations and investments in natural gas marketing, gas transmission and gathering and underground storage of natural gas.
 -0- 11/5/93
 /CONTACT: Allan E. Peattie, manager investor relations of Southeastern Michigan Gas Enterprises, 313-987-2200/
 (SMGS)


CO: Southeastern Michigan Gas Enterprises, Inc. ST: Michigan IN: UTI OIL SU: ERN

SB-KE -- DE016 -- 1226 11/05/93 12:25 EST
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Publication:PR Newswire
Date:Nov 5, 1993
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