Post Earnings Coverage as UGI Revenue Gained 10%; Adjusted EPS Climbed 6%

Upcoming AWS Coverage on Eversource Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 12, 2017 / Active Wall St. announces its post-earnings coverage on UGI Corp. (NYSE: UGI). The Company posted its second quarter fiscal 2017 results on May 01, 2017. The natural gas and electric utilities operator exceeded top- and bottom-line expectations. Register with us now for your free membership at:

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One of UGI Corp.’s competitors within the Diversified Utilities space, Eversource Energy (NYSE: ES), reported its financial performance through Q1 of 2017 on Thursday, May 04, 2017. AWS will be initiating a research report on Eversource Energy in the coming days.

Today, AWS is promoting its earnings coverage on UGI; touching on ES. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, UGI generated revenue of $2.17 billion compared to revenue of $1.97 billion in Q2 FY16. The Company’s revenue numbers came in ahead of analysts’ expectations of $2.14 billion

For Q2 FY17, UGI reported GAAP net income attributable to the Company of $219.9 million, or $1.24 per diluted share, compared to $233.2 million, or $1.33 per diluted share, for Q2 FY16. Adjusted net income attributable to UGI was $231.8 million, or $1.31 per diluted share, for the reported quarter compared to $216.2 million, or $1.24 per diluted share, for the prior year’s same quarter. UGI’s adjusted net income excludes the impact of unrealized gains and losses on commodity and certain foreign currency derivative instruments, integration expenses associated with the Finagaz acquisition, and a loss on an early extinguishment of debt. The Company’s earnings topped Wall Street’s expectations of $1.28 per share.

Segment Summary

During Q2 FY17, UGI’s AmeriGas Propane segment’s revenue increased 4.4% to $863.6 million compared to revenue of $827.5 million in Q2 FY16. The segment’s retail gallons sold decreased 6.0% to 362.7 million due to temperatures that were 13.3% warmer than normal and 2.9% warmer than the prior year. Additionally, the critical heating months of January and February, combined, were 9% warmer than the prior year. AmeriGas Propane’s total margin decreased to $507.8 million primarily reflecting the decrease in retail volumes sold. Partnership adjusted EBITDA fell 8.2% to $271.2 million decreased principally reflecting the lower total margin.

For Q2 FY17, UGI International segment’s revenue increased 7.3% to $620.7 million compared to revenue of $578.7 million in Q2 FY16. The segment’s total retail gallons sold increased 5.2% to 253.1 million, principally reflecting the effects of weather that was approximately 1.3% colder than the prior year. UGI International’s total margin was almost flat with the prior year at $307.6 million as higher retail volumes were offset by slightly lower average retail and cylinder unit margins and the effects of the weaker currencies. The segment’s operating income increased 8.5% to $121.0 million, reflecting the lower operating expenses as well as slightly higher other operating income due to the absence of a $2.1 million loss recorded in the prior year associated with interest rate hedge ineffectiveness.

During Q2 FY17, Midstream & Marketing segment’s revenues surged 41.8% to $423.7 million driven by higher natural gas revenue due to higher natural gas prices and volumes as well as higher peaking revenues due to an increase in demand for peaking services. The segment’s total margin increased 4.4% to $113.9 million, principally reflecting higher peaking and capacity management total margin, as well as slightly higher natural gas total margin, partially offset by lower electric generation and storage total margin.

For the reported quarter, the Company’s UGI utilities segment’s revenue improved 11.8% to $360 million. During the reported quarter, Gas Utility service territory experienced temperatures that were approximately 11.7% warmer than normal and 3.3% warmer than the prior year. Total Gas Utility distribution system throughput increased reflecting higher large firm delivery service, partially offset by lower core market volumes reflecting the effects of warmer weather. The segment’s total margin increased 6.0% to $194.2 million primarily reflecting higher Gas Utility total margin from core market customers resulting from the increase in UGI Gas base rates and higher large firm delivery service margin, partially offset by the lower core market throughput.

Stock Performance

On Thursday, May 11, 2017, the stock closed the trading session at $49.14, marginally down 0.16% from its previous closing price of $49.22. A total volume of 643.77 thousand shares have exchanged hands. UGI Corp.’s stock price advanced 4.34% in the last three months, 8.59% in the past six months, and 20.28% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 7.17%. The stock is trading at a PE ratio of 18.63 and has a dividend yield of 2.04%.

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