UGI Q1 2022 Earnings Report
Key Takeaways
UGI's Q1 GAAP diluted EPS was $(0.46) and adjusted diluted EPS was $0.93, compared to GAAP diluted EPS of $1.44 and adjusted diluted EPS of $1.18 in the prior-year period. Results reflect the impact of all-time record warm weather in the U.S. in December and significant increases and volatility in commodity prices on LPG and energy marketing margins in Europe, partially offset by incremental contribution from strategic investments in the natural gas businesses.
AmeriGas reported lower volumes due to weather, the impact of customer service challenges, and the effect of higher commodity prices on customer usage.
UGI International faced significantly higher and unprecedented volatility in commodity prices in Europe, negatively impacting LPG unit and energy marketing margins.
Natural gas businesses delivered strong results, despite the warmer weather, due to incremental earnings from Mountaineer and higher margin from renewable energy marketing activities.
UGI received regulatory approval for the intended joint venture with SHV Energy and announced a 15-year agreement with Vertimass to utilize their catalytic technology to produce renewable fuels.
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Forward Guidance
Consistent with our past practice, we do not discuss adjusted EPS guidance until the completion of the second fiscal quarter. However, we remain focused on executing our strategy in order to achieve our long-term EPS growth commitment of 6 – 10%.