UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549
                            FORM 10-Q
(Mark One)

[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 1998

                                OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

For the transition period from            to

Commission file number 0-1055

                 FLORIDA PUBLIC UTILITIES COMPANY
      (Exact name of registrant as specified in its charter)

           Florida                                      59-0539080
(State or other jurisdiction of          (I.R.S. Employer Identification No.) 
  incorporation or organization)

401 South Dixie Highway, West Palm Beach, FL          33401
  (Address of principal executive offices)          (Zip Code)

(Registrant's telephone number, including area code)   (561)  832-2461

(Former name, former address and former fiscal year, if changed since last   
report)

  Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes x    No

        APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
           PROCEEDINGS DURING THE PRECEDING FIVE YEARS

  Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.  Yes    No

               APPLICABLE ONLY TO CORPORATE ISSUERS

  Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.  At July 31, 1998 there were
2,996,913 shares of $1.50 par value common shares outstanding.






                 FLORIDA PUBLIC UTILITIES COMPANY
        CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                          (in thousands)


                                               June 30,  December 31, 
                                                 1998        1997     

ASSETS

Utility Plant                                 $115,133       $112,356 
  Less accumulated depreciation                 41,276         39,632 
      Net utility plant                         73,857         72,724 
 
Current Assets
  Cash and overnight investments                   431            123 
  Accounts receivable                            7,304          7,621 
  Inventories and prepayments                    3,620          4,063 
      Total                                     11,355         11,807 

Investments Held in Escrow for
  Environmental Costs                            3,086          3,024 

Deferred Charges                                 1,267          1,067 

      Total                                   $ 89,565       $ 88,622 


CAPITALIZATION AND LIABILITIES

Capitalization
  Common shareholders' equity                 $ 27,362       $ 26,189 
  Preferred stock                                  600            600 
  Long-term debt                                23,500         23,500 
      Total                                     51,462         50,289 

Current Liabilities
  Notes payable                                  5,800          7,600 
  Accounts payable                               5,659          5,596 
  Taxes accrued                                  1,301            146 
  Other                                          5,380          5,149 
  Customer deposits                              3,812          3,782 
      Total                                     21,952         22,273 

Deferred Credits                                 8,168          7,909 

Deferred Income Taxes and
  Regulatory Liability                           7,983          8,151 

      Total                                   $ 89,565       $ 88,622 





                   FLORIDA PUBLIC UTILITIES COMPANY
      CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
           (dollars in thousands, except per share data)



                                   Three Months Ended         Six Months Ended
                                        June 30,                  June 30,    
                                    1998         1997         1998        1997

Revenues
  Natural gas                     $ 6,828     $ 7,578      $16,582      $18,280
  Electric                          9,691       8,891       18,787       18,451
  Propane gas                         993         923        2,430        2,365
  Water                               603         486        1,028          925
      Total revenues               18,115      17,878       38,827       40,021

Cost of Fuel and Taxes
Based on Revenues                  11,375      11,492       24,168       26,278

Operating Margin                    6,740       6,386       14,659       13,743


Operating Expenses                  4,104       3,897        8,107        7,875
  Depreciation                      1,059       1,003        2,105        1,997
  Income taxes                        295         256        1,077          837
    Total operating expenses        5,458       5,156       11,289       10,709

Operating Income                    1,282       1,230        3,370        3,034

Interest Expense                     (711)       (723)      (1,420)      (1,482)
Other Income                           --          19           24           20
                                          
Net Income                            571         526        1,974        1,572 
  
Preferred Stock Divide                  7           7           14           14 

Earnings For Common Stock         $   564     $   519      $ 1,960      $ 1,558 

Earnings Per Common Share         $   .19     $   .17      $   .66      $   .53

Dividends Per Common Share        $   .15     $   .15      $   .30      $   .30 

Weighted Average Common Shares
  Outstanding                   2,989,120   2,962,594    2,987,462    2,960,068 




                 
                        FLORIDA PUBLIC UTILITIES COMPANY
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                  (in thousands)


                                                        Six Months Ended  
                                                             June 30,      
                                                        1998          1997 
Cash Flows from Operating Activities
  Net income                                         $ 1,974       $ 1,572 
  Adjustments to reconcile net income to net
    cash provided (used) by operating activities
    Depreciation                                       2,104         1,997 
    Deferred income taxes                               (169)         (432)
    Other                                                 49           132 
  Changes in operating assets and liabilities
    Accounts receivable                                  303         1,335 
    Inventories and prepayments                          458           724 
    Accounts payable and accrued expenses              1,446        (1,139)
    Deferred credits                                    (134)          (28)     
    Over recovery of fuel costs                          195         1,420 

    Net cash provided by operating activities          6,226         5,581 

Cash Flows from Investing Activities
  Construction expenditures                           (3,328)       (3,591)
  Other                                                  (21)          117 

    Net cash used by investing activities             (3,349)       (3,474)

Cash Flows from Financing Activities
  Net change in short-term borrowing                  (1,800)       (1,800)
  Dividends paid                                        (909)         (900)
  Other                                                  140           150 

    Net cash used by financing activities             (2,569)       (2,550)

Net Increase in Cash and Cash Equivalents                308          (443)

Cash and Overnight Investments at Beginning
  of Period                                              123           841 

Cash and Overnight Investments at 
  End of Period                                      $   431       $   398 





                 
                     FLORIDA PUBLIC UTILITIES COMPANY
       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          JUNE 30, 1998

1.   In the opinion of the Company, the accompanying condensed consolidated
     financial statements contain all adjustments (consisting only of normal
     recurring accruals) necessary to present fairly the financial information
     contained therein.  The results of operations are not necessarily
     indicative of the results expected for the full year.

2.   The First Mortgage Bond Indentures provide for restrictions on the payment
     of cash dividends.  At June 30, 1998 under the most restrictive provision,
     approximately $5,900,000 of retained earnings were unrestricted.          




          
                       FLORIDA PUBLIC UTILITIES COMPANY
                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                JUNE 30, 1998



Financial Condition.  The Company has a $15,000,000 line of credit with its
primary bank of which $5,800,000 is outstanding at June 30, 1998.  The line
provides for interest at LIBOR plus 50 basis points.  The Company is approved 
by the Florida Public Service Commission to borrow up to $15,000,000 on a line 
of credit basis, $14,000,000 of which is available for general corporate 
purposes with the remaining $1,000,000 reserved as a contingency for major 
storm repairs in the Marianna electric division.

Overview.  The Company is organized into three regulated business segments,
natural gas, electric and water and a non-regulated operation, propane gas.
The water operations are not significant, approximating 2.5% of revenues.

Contributing to variations in operating margins are the effects of seasonal
weather conditions, the timing of rate increases and the migration of winter
residents and tourists to Florida during the winter season.

Summary of Operating Margins
  (in thousands)
                                               Six Months Ended June 30,    
                                               1998        1997        1996
Natural and Propane Gas
  Operating margin                          $ 8,954     $ 8,305     $ 8,815 
  Less propane gas                            1,478       1,286       1,518 
  Remainder                                 $ 7,476     $ 7,019     $ 7,297 

Electric
  Operating margin                          $ 4,721     $ 4,556     $ 4,591 
  Less industrial                               282         281         264 
  Remainder                                 $ 4,439     $ 4,275     $ 4,327 


                                               Three Months Ended June 30,   
                                               1998        1997        1996 
Natural and Propane Gas
  Operating margin                          $ 3,812     $ 3,679     $ 3,502 
  Less propane gas                              659         526         578 
  Remainder                                 $ 3,153     $ 3,153     $ 2,924 

Electric
  Operating margin                          $ 2,350     $ 2,244     $ 2,258 
  Less industrial                               139         148         139 
  Remainder                                 $ 2,211     $ 2,096     $ 2,119 

Operating Margin.  Operating margin, defined as gross operating revenues less 
cost of fuel and taxes passed-through to customers which are based on revenues, 
provides a more meaningful basis for evaluating utility operations since fuel 
costs and taxes passed-through to customers have no effect on results of 
operations.


Six Months Ended June 30, 1998 Compared With Six Months Ended June 30, 1997

Natural and Propane Gas Service.  Total natural and propane gas service 
operating margin increased $649,000, about 8% in 1998 as compared with 1997.  
Excluding propane gas operating margin from total gas operating margin, 
remaining operating margin increased $457,000, about 7%.  The increase in 
natural gas operating margin was due to a 1.5% increase in average customers 
for the first half ended June 30, 1998 and an increase in per customer 
consumption of about 5%, resulting primarily from an increase in heating degree 
days of approximately 60% from the comparable period in 1997.  Propane gas 
operating margin increased $192,000 or about 15% as compared with 1997.  
Propane gas had an 1% decrease in average customers for the six month period 
ended June 30, 1998, some of whom were converted to natural gas.  The net 
increase in propane operating margin is primarily due to the increase in 
heating degree days in 1998 and a propane rate increase that became effective 
in April.

Total natural and propane gas service operating margin decreased $510,000 or
about 6% in 1997 as compared with 1996.  Excluding propane gas operating margin
from total gas operating margin, remaining operating margin decreased $278,000
or about 4% in 1997 as compared with 1996.  The decrease in natural gas 
operating margin is due principally to a 60% decrease in heating degree days 
early in 1997. Propane gas operating margin decreased $232,000, or about 15%.  
Similarly, the decrease in propane gas operating margin is due principally to 
the warmer weather early in 1997.

Electric Service. Total electric service operating margin increased $165,000, or
almost 4% versus 1997.  There was an approximate 9% increase in average
consumption per customer, primarily due to warmer weather in the second quarter,
and a 2% growth in average customers for the six month period.

Total electric service operating margin decreased $35,000 in 1997 as compared
with 1996.  Affecting the comparison of operating margin are two industrial
customers.  Excluding these customers, operating margin decreased $52,000.  The
effect on consumption of the warmer weather early in 1997 was greater than the
2.5% increase in customer growth.

Operating Expenses.  In 1998, operating expenses, excluding cost of fuel and
taxes passed-through to customers, increased $340,000, or a little more than 2%
in relation to operating margin.  Generally, operating expenses have increased
marginally in all categories of expense due to inflationary pressures with
depreciation accounting for approximately one-third of the overall increase. 
Most of the increase in depreciation is attributable to growth in utility plant.

In 1997, operating expenses, excluding cost of fuel and taxes passed-through to
customers, increased $229,000, or almost 2% in relation to operating margin. 
Operating expenses increased marginally in all classifications of expense due
primarily to inflationary effects. 

Income taxes were provided for at approximately the same rate in both six-month
periods and are reduced by amortization of deferred investment tax credits.

Interest expense decreased in 1998 versus 1997 due primarily to an approximate
17% reduction in the weighted average amounts outstanding under the line of
credit as compared with 1997.

Cash Flows.  Net cash provided by operating activities increased $645,000 due to
changes in certain components of cash provided by operating activities.  The
most significant of the changes occurred in accounts payable and accrued
expenses, a change of $2,585,000.  The effect of restoring outstanding checks to
cash as of June 30, 1998, increased payables by approximately $1,100,000 and the
decrease in gas and electric fuel costs from December 1996 to June 1997 reduced
payables by approximately $1,100,000; thus accounting for about $2,200,000 of
the $2,585,000 change.  Accounts receivable provided less cash flow in the 1998
period as there were less fuel costs to recover than in the comparable period of
1997.


Three Months Ended June 30, 1998 Compared with Three Months Ended 
June 30, 1997

Natural and Propane Gas Service.  Total natural and propane gas service 
operating margin increased $133,000, about 4% in 1998 as compared with 1997.  
Natural gas operating margin was unchanged as compared with the second quarter 
of 1997.  The increase in propane gas operating margin of 25% is due 
principally to a rate increase that became effective in April.

Total natural and propane gas service operating margin increased $177,000 or
about 5% in 1997 as compared with 1996.  Excluding propane gas operating margin
from total gas operating margin, remaining operating margin decreased $229,000
or about 8% in 1997 as compared with 1996.  The increase in natural gas 
operating margin is due principally to an approximate 2% increase in customers 
and a 5% increase in average consumption per customer.  Propane gas operating 
margin decreased $52,000, or about 9%, due primarily to a 2% decrease in 
customers (some of which were converted to natural gas) and an 8% decrease in 
average consumption per customer.

Electric Service.  Total electric service operating margin increased $106,000 
or about 5% versus the second quarter of 1997.  There was a 16% increase in 
average consumption per customer due primarily to warmer weather in 1998.  
Resulting from such increase in consumption was an increase of more than 3% 
in average operating margin per customer, excluding industrial customers.

Total electric service operating margin decreased $14,000 in 1997 as compared
with 1996.  Affecting the comparison of operating margin are two industrial  
customers.  Excluding these customers, operating margin decreased $23,000 or 1%.

Operating Expenses.  In 1998, operating expenses, excluding cost of fuel and
taxes passed-through to customers, increased $263,000, or about 4% in relation
to operating margin.  Generally, operating expenses have increased marginally 
in all classifications of expense, due primarily to inflationary pressures.

In 1997, operating expenses, excluding cost of fuel and taxes passed-through 
to customers, increased $81,000, or about 1% in relation to operating margin. 
Operating expenses increased due primarily to inflationary pressures.

Income taxes were provided for at approximately the same rate in both three-
month periods and are reduced by amortization of deferred investment tax 
credits.

Interest expense decreased in 1998 versus 1997 due primarily to an approximate
8% reduction in the weighted average amounts outstanding under the line of 
credit as compared with 1997. 






PART II.

                             OTHER INFORMATION



Item 6. Exhibits and reports on Form 8-K.

        (a)  None.

        (b)  Reports on Form 8-K:
             There were no reports on Form 8-K filed for the quarter ending
             June 30, 1998.

                                  SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, 

the registrant has duly caused this report to be signed on its behalf by the 

undersigned thereunto duly authorized.

                                                         
                                         FLORIDA PUBLIC UTILITIES COMPANY
                                         (Registrant)





                                         By   /s/ Jack R. Brown             
                                         Jack R. Brown
                                         Treasurer
                                         (DULY AUTHORIZED OFFICER
                                         AND
                                         CHIEF FINANCIAL OFFICER)


Date: August 13, 1998