Q2 2024 UGI Corp Earnings Call Transcript
Key Points
- UGI Corp reported a strong fiscal 2024 second quarter with adjusted earnings per share of $1.97, a $0.29 increase over the prior year, driven largely by the natural gas businesses.
- The company implemented effective cost control, resulting in a $27 million year-over-year reduction in operating and administrative expenses.
- UGI Corp is on track to deliver within the fiscal 2024 adjusted EPS guidance range of $2.70 to $3.00.
- The company has completed a strategic review of the LPG businesses and is focusing on restructuring and operational improvement plans for AmeriGas.
- UGI Corp has a robust performance from its Midstream & Marketing business, with a $48 million increase in EBIT over the prior year, driven by higher margins from natural gas marketing activities.
- Despite the overall strong performance, UGI International was down $0.01 from lower earnings attributable to the noncore energy marketing business.
- AmeriGas faced challenges with higher income taxes resulting from limitations on interest deductibility, contributing to a $0.17 decrease in its segment.
- UGI Corp is dealing with operational challenges at AmeriGas, including higher customer attrition rates and pressure on debt covenants.
- The company is in a period of balance sheet repair, requiring careful capital deployment and cost management to improve financial stability.
- UGI Corp's dividend growth is expected to remain flat through fiscal 2026 as the company focuses on strengthening the balance sheet and stabilizing AmeriGas.
Good day, and thank you for standing by. Welcome to the UGI Corporation Q2 2024 Earnings Conference Call.(Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Tameka Morris, Senior Director of Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining our fiscal 2024 second quarter earnings call. With me today are Mario Longhi, Interim President and CEO; Sean O'Brien, CFO; and Bob Beard, COO.
On today's call, we will provide a strategic update on the business and discuss our financial results for the quarter before concluding with a question-and-answer session.
Before we begin, let me remind you that our comments today include certain forward-looking statements, which management believes to be reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict. Please read our earnings
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