On November 16, 2023, UGI Corp (UGI, Financial) released its 8-K filing, detailing the financial outcomes for the fiscal year ended September 30, 2023, and providing an outlook for fiscal 2024. The year was marked by a significant GAAP net loss of $(1,502) million, a stark contrast to the previous year's GAAP net income of $1,073 million. However, the adjusted net income remained relatively stable at $613 million compared to $626 million in the prior year.
Fiscal 2023 Performance Overview
UGI Corp (UGI, Financial) reported adjusted diluted earnings per share (EPS) of $2.84, a slight decrease from the $2.90 reported in the previous year. The reportable segments' earnings before interest expense and income taxes (EBIT) were $1,158 million, marginally down from $1,166 million in the prior year. The company maintained strong liquidity with approximately $1.6 billion available.
Segment Highlights and Strategic Accomplishments
The Utilities and Midstream & Marketing segments were notable performers, achieving record earnings. This success was driven by higher gas utility base rates, the weather normalization adjustment mechanism at the PA Gas Utility, and incremental earnings from acquisitions such as UGI Moraine East and Pennant. UGI Corp (UGI, Financial) also made significant strides in its commitment to renewable energy, investing over $500 million in projects and completing two renewable natural gas (RNG) projects with a combined capacity of 140 million cubic feet annually.
Financial Tables Summary
Utilities segment revenue increased by 14% to $1,854 million, with a total margin increase of 9% to $877 million. Midstream & Marketing revenues saw a 21% decrease to $1,847 million, yet the total margin rose by 8% to $487 million. UGI International faced a 20% decline in revenues to $2,965 million, with a slight 2% decrease in total margin to $920 million. AmeriGas Propane revenues decreased by 12% to $2,581 million, with a stable total margin of $1,331 million.
Management Commentary
"While fiscal 2023 was a challenging year, we were pleased to deliver adjusted diluted EPS of $2.84 which was largely attributable to record earnings in both 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," said Roger Perreault, President and Chief Executive Officer of UGI Corporation.
Fiscal 2024 Outlook
UGI Corp (UGI, Financial) has issued an adjusted EPS guidance range of $2.70 - $3.00 for fiscal 2024, assuming normal weather and the current tax regime. The company remains focused on strategic actions to improve earnings reliability and strengthen the balance sheet, including re-aligning the capital allocation plan and optimizing the cost structure.
Investor Relations and Future Prospects
UGI Corp (UGI, Financial) continues to prioritize maintaining dividends, strengthening the balance sheet, and investing in regulated utilities. The company is also exploring opportunities for share repurchases and other growth investments in natural gas. With a robust portfolio and high-quality assets, UGI Corp (UGI) is positioned for sustainable long-term value creation for its shareholders.
For more detailed information on UGI Corp (UGI, Financial)'s fiscal 2023 performance and the outlook for fiscal 2024, investors and interested parties can access the full earnings call and webcast.
Explore the complete 8-K earnings release (here) from UGI Corp for further details.
