UGI Corp. Reports Operating Results (10-Q)
Ugi Corporation has a market cap of $4.06 billion; its shares were traded at around $35.92 with a P/E ratio of 20.4499 and P/S ratio of 0.6267. The dividend yield of Ugi Corporation stocks is 2.97%. Ugi Corporation had an annual average earning growth of 6.7% over the past 10 years.
Highlight of Business Operations:Retail propane revenues increased $186.7 million during the 2012 three-month period reflecting the higher retail volumes sold ($342.5 million) partially offset by a decline in average retail selling prices ($155.8 million), the result of lower propane product costs. Wholesale propane revenues declined $27.0 million principally reflecting lower wholesale volumes sold ($13.4 million) and lower average wholesale propane selling prices ($13.6 million). Average daily wholesale propane commodity prices during the 2012 three-month period at Mont Belvieu, Texas, one of the major supply points in the U.S., were approximately 38% lower than such prices during the prior-year three-month period. Total revenues from fee income and other ancillary sales and services in the 2012 three-month period were $33.1 million higher than in the 2011 three-month period principally reflecting such revenues from Heritage Propane. Total cost of sales increased $8.3 million principally reflecting the effects of the greater retail volumes sold ($221.2 million) and greater cost of sales associated with ancillary sales and services ($8.7 million) partially offset by the effects of lower average propane product costs on retail propane cost of sales ($194.6 million) and lower wholesale cost of sales ($27.1 million).
Total margin increased $184.5 million in the 2012 three-month period principally reflecting higher total propane margin ($160.2 million) and greater total margin from ancillary sales and services ($24.3 million). These increases principally reflect the incremental effects of Heritage Propane and, with respect to total propane margin, higher 2012 three-month period average unit margins reflecting the lower propane product costs.
International Propane revenues increased $146.6 million principally reflecting the effects of greater average LPG prices and to a much lesser extent the greater volumes sold. Cost of sales increased to $474.8 million in the 2012 three-month period from $343.8 million in the prior-year period principally reflecting higher average LPG commodity costs and, to a much lesser extent, the effects of the greater volumes sold.
Notwithstanding the increase in system throughput, Gas Utility revenues decreased $6.7 million during the 2012 three-month period principally reflecting lower revenues from off-system sales ($6.3 million) and a decline in revenues from retail core-market customers ($6.0 million). These decreases were partially offset by higher revenues from firm and interruptible delivery service customers from higher volumes. The decrease in retail core-market revenues principally reflects the effects on gas cost recovery revenues of lower average purchased gas cost (“PGC”) rates resulting from lower natural gas prices ($22.2 million) partially offset by the effects on retail core-market revenues of greater retail core-market volumes. Under Gas Utility s PGC recovery mechanisms, Gas Utility records the cost of gas associated with sales to retail core-market customers at amounts included in PGC rates. The difference between actual gas costs and the amounts included in rates is deferred on the balance sheet as a regulatory asset or liability and represents amounts to be collected from or refunded to customers in a future period. As a result of this PGC recovery mechanism, increases or decreases in the cost of gas associated with retail core-market customers have no direct effect on retail core-market margin. Gas Utility s cost of gas was $123.6 million in the 2012 three-month period compared with $141.7 million in the prior-year period principally reflecting lower average PGC rates ($22.2 million) and the lower off-system sales ($6.3 million) partially offset by the effects on cost of sales of the greater retail core-market volumes.
Midstream & Marketing total revenues increased $3.1 million in the 2012 three-month period principally reflecting, among other things, higher revenues from our Electric Generation business ($7.5 million), higher retail power revenues ($4.1 million) and higher revenues from gas gathering activities ($1.2 million) partially offset by lower revenues from natural gas marketing activities ($12.1 million) due to lower average natural gas prices.
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