UGI Corp. (UGI, Financial) filed Annual Report for the period ended 2009-09-30.
Ugi Corp. has a market cap of $2.55 billion; its shares were traded at around $23.55 with a P/E ratio of 10 and P/S ratio of 0.5. The dividend yield of Ugi Corp. stocks is 3.4%. Ugi Corp. had an annual average earning growth of 9.6% over the past 10 years. GuruFocus rated Ugi Corp. the business predictability rank of 4.5-star.
The Partnership has over 250 domestic and international sources of supply, including the spot market. Supplies of propane from the Partnerships sources historically have been readily available. During the year ended September 30, 2009, over 90% of the Partnerships propane supply was purchased under supply agreements with terms of 1 to 3 years. The availability of propane supply is dependent upon, among other things, the severity of winter weather, the price and availability of competing fuels such as natural gas and crude oil, and the amount and availability of imported supply. Although no assurance can be given that supplies of propane will be readily available in the future, management currently expects to be able to secure adequate supplies during fiscal year 2010. If supply from major sources were interrupted, however, the cost of procuring replacement supplies and transporting those supplies from alternative locations might be materially higher and, at least on a short-term basis, margins could be affected. BP Products North America Inc. and BP Canada Energy Marketing Corp. (collectively), Enterprise Products Operating LP and Targa Midstream Services LP, supplied approximately 46% of the Partnerships Fiscal 2009 propane supply. No other single supplier provided more than 10% of the Partnerships total propane supply in Fiscal 2009. In certain areas, however, some suppliers provide more than 50% of the Partnerships requirements. Disruptions in supply in these areas could also have an adverse impact on the Partnerships margins.
Because many customers use propane for heating purposes, the Partnerships retail sales volume is seasonal. Approximately 65% to 70% of the Partnerships retail sales volume occurs, and substantially all of the Partnerships operating income is earned, during the peak heating season from October through March. As a result of this seasonality, sales are higher in the Partnerships first and second fiscal quarters (October 1 through March 31). Cash receipts are generally greatest during the second and third fiscal quarters when customers pay for propane purchased during the winter heating season.
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Ugi Corp. has a market cap of $2.55 billion; its shares were traded at around $23.55 with a P/E ratio of 10 and P/S ratio of 0.5. The dividend yield of Ugi Corp. stocks is 3.4%. Ugi Corp. had an annual average earning growth of 9.6% over the past 10 years. GuruFocus rated Ugi Corp. the business predictability rank of 4.5-star.
Highlight of Business Operations:
The Partnership sells propane primarily to residential, commercial/industrial, motor fuel, agricultural and wholesale customers. The Partnership distributed over one billion gallons of propane in Fiscal 2009. Approximately 89% of the Partnerships Fiscal 2009 sales (based on gallons sold) were to retail accounts and approximately 11% were to wholesale customers. Sales to residential customers in Fiscal 2009 represented approximately 41% of retail gallons sold; commercial/industrial customers 36%; motor fuel customers 13%; and agricultural customers 5%. Transport gallons, which are large-scale deliveries to retail customers other than residential, accounted for 5% of Fiscal 2009 retail gallons. No single customer represents, or is anticipated to represent, more than 5% of the Partnerships consolidated revenues.The Partnership has over 250 domestic and international sources of supply, including the spot market. Supplies of propane from the Partnerships sources historically have been readily available. During the year ended September 30, 2009, over 90% of the Partnerships propane supply was purchased under supply agreements with terms of 1 to 3 years. The availability of propane supply is dependent upon, among other things, the severity of winter weather, the price and availability of competing fuels such as natural gas and crude oil, and the amount and availability of imported supply. Although no assurance can be given that supplies of propane will be readily available in the future, management currently expects to be able to secure adequate supplies during fiscal year 2010. If supply from major sources were interrupted, however, the cost of procuring replacement supplies and transporting those supplies from alternative locations might be materially higher and, at least on a short-term basis, margins could be affected. BP Products North America Inc. and BP Canada Energy Marketing Corp. (collectively), Enterprise Products Operating LP and Targa Midstream Services LP, supplied approximately 46% of the Partnerships Fiscal 2009 propane supply. No other single supplier provided more than 10% of the Partnerships total propane supply in Fiscal 2009. In certain areas, however, some suppliers provide more than 50% of the Partnerships requirements. Disruptions in supply in these areas could also have an adverse impact on the Partnerships margins.
Because many customers use propane for heating purposes, the Partnerships retail sales volume is seasonal. Approximately 65% to 70% of the Partnerships retail sales volume occurs, and substantially all of the Partnerships operating income is earned, during the peak heating season from October through March. As a result of this seasonality, sales are higher in the Partnerships first and second fiscal quarters (October 1 through March 31). Cash receipts are generally greatest during the second and third fiscal quarters when customers pay for propane purchased during the winter heating season.
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