Semco restructuring brings loss; Enstar parent exits engineering business

Allen Baker

Semco Energy Inc. showed a loss of $5.4 million for the fourth quarter and $6.4 million for the year as the parent of Enstar restructured its business.

Even before the write-offs, fourth-quarter profits for the Farmington Hills, Mich., company were reduced $1.6 million by warmer than normal weather in Michigan and Alaska, where it sells natural gas for heating and other uses.

Net quarterly income from continuing operations was $5.2 million, compared with a profit of $12.4 million a year earlier. Operating income from gas distribution shrunk to $19.6 million for the quarter, down 29 percent from $27.8 in the final quarter of 2000. The construction services business showed a loss of $3.9 million for the quarter, compared with a $2.8 million profit a year ago.

Semco’s restructuring charges include its decision to discontinue its engineering business, which triggered a $6.1 million write-down.

Revenues dropped 7 percent for the quarter to $132.5 million, from $142.8 million a year earlier. For the year, revenues were up 9 percent to $445.8 million.