UGI Q4 Loss Narrower Than Expected, Revenues Miss Estimates

Core Viewpoint - UGI Corporation reported a narrower operating loss in Q4 fiscal 2024 compared to expectations, but total revenues fell short of consensus estimates and declined year-over-year Financial Performance - The operating loss for Q4 fiscal 2024 was 16 cents per share, better than the Zacks Consensus Estimate of a loss of 30 cents, and down from earnings of 3 cents per share in the same quarter last year [1] - Total revenues were $1.24 billion, missing the consensus estimate of $1.54 billion by 19.5%, and decreased 11.5% from $1.44 billion in the year-ago quarter [2] Investment and Dividends - UGI invested nearly $900 million in fiscal 2024, with 80% allocated to regulated utilities for infrastructure replacement and the Midstream and Marketing segment [3] - The company maintained its legacy dividend payment, marking the 140th consecutive year of dividends, with a 10-year compound annual growth rate of 6% [3] Cost Management - Efficient management allowed UGI to reduce operation and maintenance expenses by $75 million compared to the previous year [4] Segment Performance - AmeriGas Propane: EBIT of $142 million, down 47% year-over-year, with retail gallons sold decreasing 10% due to warmer weather and customer attrition [5] - UGI International: EBIT of $323 million, up 38% year-over-year, driven by higher LPG unit margins and favorable currency translation effects [6] - Midstream & Marketing: EBIT of $313 million, up 7.6% year-over-year, attributed to increased capacity management and lower operational expenses [6] - UGI Utilities: EBIT of $400 million, up 9.6% year-over-year, due to increases in gas and electric base rates and higher DSIC revenues [7] Future Guidance - UGI anticipates adjusted earnings for fiscal 2025 to be in the range of $2.75-$3.05 per share, with the Zacks Consensus Estimate at $3.14 per share [8] - The company plans to invest between $800-$900 million in fiscal 2025 to strengthen operations [8] Long-term Outlook - UGI's long-term earnings growth rate is projected to be in the range of 4-6%, with planned investments of $3.7 billion to $4.1 billion from fiscal 2024 to 2027 [9]