VALLEY FORGE, PA — UGI Corporation (NYSE: UGI), a leading distributor of energy products and services, recently released its financial results for the fiscal year ended September 30, 2023, and provided guidance for the fiscal year 2024.
The company reported a GAAP net loss of $(1,502) million and an adjusted net income of $613 million. This is compared to a GAAP net income of $1,073 million and adjusted net income of $626 million in the previous fiscal year. UGI also recorded GAAP diluted (loss) earnings per share (“EPS”) of $(7.16) and adjusted diluted EPS of $2.84, compared to GAAP diluted EPS of $4.97 and adjusted diluted EPS of $2.90 in the prior year.
UGI’s reportable segments, earnings before interest expense and income tax (“EBIT”) stand at $1,158 million, in comparison to $1,166 million in the previous year. The company also noted an available liquidity of approximately $1.6 billion.
Despite the challenging fiscal year, UGI achieved record earnings in its Utilities and Midstream & Marketing segments, driven by higher gas utility base rates, benefits from the weather normalization adjustment mechanism at the PA Gas Utility, and incremental earnings from the prior year acquisitions of UGI Moraine East and Pennant.
Significant capital was deployed ($563 million), adding approximately 13,000 residential and commercial heating customers at the Utilities. In line with its strategy to improve earnings stability, UGI divested the energy marketing businesses in the UK and Belgium during the fiscal year and completed the sale of substantially all of the energy marketing portfolio in France in October 2023.
UGI has committed over $500 million to renewable energy projects to date and completed construction of two previously announced RNG projects in upstate New York, Allen Farms and El-Vi, with a capacity to produce 140 million cubic feet of RNG annually.
The company maintained its tradition of paying dividends for the 139th consecutive year, delivering a 10-year compound average growth rate of 7%.
Roger Perreault, President and CEO of UGI Corporation, commented on the results: “While fiscal 2023 was a challenging year, we were pleased to deliver adjusted diluted EPS of $2.84 largely attributable to record earnings in our Utilities and Midstream & Marketing segments as well as benefits from actions taken to alleviate volume and cost-related pressures in the Global LPG businesses.”
Looking ahead, UGI provided an adjusted EPS guidance range of $2.70 – $3.00 per diluted share for the fiscal year ending September 30, 2024. This guidance assumes normal weather conditions and the current tax regime.
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