VALLEY FORGE, PA — Notwithstanding warmer-than-normal weather conditions, UGI Corporation (NYSE: UGI) reports strong financial achievements for the fiscal quarter ending December 31, 2023.
UGI’s Q1 GAAP diluted EPS lands at $0.44, a gigantic leap when compared to $(4.54) from the same period last year. The company’s adjusted diluted EPS also increased from $1.14 to $1.20. Earnings before interest expense and income taxes (EBIT) also saw an upward trajectory, with a rise from $411 million to $425 million.
These impressive results are largely credited to the stellar performance of UGI International, which recorded a 77% increase in EBIT. This surge is linked to the strategic decision to step away from the non-core energy marketing business, increased LPG volume, and amplified unit margins.
The corp’s liquidity remained strong, with available cash resources around the $1.5 billion mark at the end of December 2023.
UGI also earned the green light from the West Virginia Public Service Commission for Mountaineer’s gas rate case, resulting in a $13.9 million annual distribution rate hike effective from January 1, 2024, along with a weather normalization adjustment mechanism from October 1, 2024.
Interim President and Chief Executive Officer, Mario Longhi, underlined the firm’s pledge to customers, shareholders, and employees and hinted at an intensified focus on execution. The company looks to bolster reliable earnings growth, return cash to shareholders through dividends, and fortify cost efficiencies while enhancing their financial stability.
UGI International, despite unbearably warm conditions, enjoyed a 4% rise in retail volume. This, in addition to the non-core energy marketing business’s successful exit and higher LPG unit margins, led to a $64 million boost in the total margin.
AmeriGas Propane, however, experienced a dip in retail gallons sold by 13% and a total margin decrease of $34 million, primarily due to warmer weather and ongoing customer attrition.
The company’s commitment to maintaining healthy dividends to shareholders and reducing overheads in the near term, highlights its dedication towards sustainable growth and stronger balance sheets. These efforts and burdensome weather notwithstanding, UGI appears poised to further strengthen its core business and deliver increased value to its shareholders.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.