UGI Corporation Reports Significant Increase in Net Income to $375 Million for December 2024

UGI Corporation reported a significant increase in financial performance for the three months ended December 31, 2024, with net income attributable to the company rising to $375 million, or $1.74 per diluted share, compared to $94 million, or $0.44 per diluted share, in the same period last year. This increase was driven by a combination of factors, including a net gain from changes in unrealized commodity derivative instruments of $80 million, contrasting with a loss of $91 million in the prior year. Adjusted net income for the quarter was $295 million, up from $258 million in the previous year, reflecting improved contributions from the UGI International segment and lower income tax expenses.

The company experienced a decrease in total revenues, which fell to $2.03 billion from $2.12 billion year-over-year. This decline was primarily attributed to lower revenues in the Utilities segment, which saw a reduction in gas utility revenues due to lower purchased gas costs and weather normalization adjustments. Operating income for the quarter increased to $487 million from $232 million, largely due to lower costs of sales, which decreased to $923 million from $1.20 billion, reflecting the impact of reduced natural gas prices.

Strategically, UGI has made significant organizational changes, including the exit from its European energy marketing business, which was completed in late 2023. This decision has led to a reduction in revenues and costs associated with energy marketing activities, but it has also allowed the company to focus on its core operations. The company has also increased its capital expenditures, investing $211 million in property, plant, and equipment during the quarter, compared to $156 million in the same period last year.

Operationally, UGI reported a decrease in retail propane volumes sold, which fell by 1% due to customer attrition, while the average daily wholesale propane prices increased by approximately 14.9%. The company’s total assets as of December 31, 2024, stood at $15.41 billion, up from $15.10 billion at the end of the previous fiscal year. UGI's total liabilities also increased slightly to $10.82 billion from $10.74 billion, with long-term debt rising to $6.60 billion from $6.44 billion.

Looking ahead, UGI Corporation remains optimistic about its future performance, citing sufficient liquidity to support ongoing operations and long-term commitments. The company has a total available liquidity balance of approximately $1.5 billion as of December 31, 2024. However, it acknowledges potential risks, including fluctuating energy prices, regulatory changes, and the impact of weather conditions on demand. The company plans to continue monitoring its operational performance and market conditions closely as it navigates these challenges.