UGI Corporation Reports Substantial Loss in Fourth Quarter Due to Increased Size of Propane Business

Strategic Insights -

UGI Corporation, a holding company with propane marketing and utility subsidiaries, has reported a significant loss in its seasonal fourth quarter due to the increased size of its propane business. The company's net loss for the quarter ended September 30 deepened to $10,600,000, or 32 cents a share, from a net loss of $3,300,000, or 10 cents a share in the same period a year ago.

Key Takeaways:

  • UGI's net loss for the quarter ended September 30 was $10,600,000, or 32 cents a share, compared to a net loss of $3,300,000, or 10 cents a share in the same period a year ago.
  • Revenues increased to $218,300,000, from $116,400,000, due to the consolidation of AmeriGas Partners' results in UGI's financial statements.
  • UGI, through subsidiaries, owns 58% of AmeriGas Partners, L.P., a master limited partnership and the nation's largest propane marketer.
  • AmeriGas Partners reported a net loss of $26,490,000 for the quarter ended September 30.
  • UGI's portion of the fourth-quarter loss of its propane entities, principally AmeriGas Partners and its subsidiaries, amounted to 34 cents a share.
  • UGI's utility subsidiary contributed net income of $949,000, or 3 cents per UGI share, in the off-season period, compared with a net loss of $3,842,000, or 12 cents a share, in last year's fourth quarter.
  • UGI's results for the fiscal year ended September 30 reflect the impact of substantial transaction costs related to the formation of AmeriGas Partners and the absence of earnings from discontinued operations.

Statistics:

  • Net loss for the quarter ended September 30: $10,600,000
  • Net loss for the same period a year ago: $3,300,000
  • Increase in revenues: $101,900,000
  • Ownership percentage of AmeriGas Partners: 58%
  • Net loss of AmeriGas Partners for the quarter ended September 30: $26,490,000
  • UGI's portion of the fourth-quarter loss of its propane entities: $7,144,000 (34 cents per share)
  • Net income of UGI's utility subsidiary in the off-season period: $949,000
  • Net loss of UGI's utility subsidiary in last year's fourth quarter: $3,842,000

Sources:

  • UGI Corporation, "UGI Reports Fourth Quarter Loss Due to Increased Size of Propane Business"
  • PR Newswire, "UGI Corporation Reports Fourth Quarter Loss Due to Increased Size of Propane Business"
  • UGI Corporation, Form 10-K for the fiscal year ended September 30, 1995
  • AmeriGas Partners, L.P., Form 10-K for the fiscal year ended September 30, 1995