VALLEY FORGE, Pa.–(BUSINESS WIRE)–UGI Corporation (NYSE: UGI) announced today that it no longer expects to sell its French energy marketing business in the first quarter of Fiscal 2023, as extended negotiations with the potential buyer have been discontinued. The delay in exiting this business will not have an impact on our previously announced Fiscal 2023 adjusted diluted EPS guidance of $2.85 – $3.15.
Roger Perreault, President and Chief Executive Officer of UGI said, “While we are disappointed that the transaction will not close as anticipated, we are reaffirming our Fiscal 2023 guidance, which would have been 10 – 12 cents higher without the impact of the non-core European energy marketing business. This is largely due to the ongoing efforts to reduce the exposure which include the price management actions that we have taken for the unhedged volumes, and a portfolio that is over 90% hedged. In addition, we are encouraged by the volume conservation of our customers and the continued reduction in natural gas and power prices in Europe.”
Perreault continued, “We remain fully committed to exiting the energy marketing business in Europe, through a sale and wind-down of operations, and will continue to take appropriate actions that will allow the Company to focus on long-term shareholder value creation. Our underlying base business remains solid, with a strong customer base and attractive growth and investment opportunities. In fact, excluding the non-core European energy marketing business, the midpoint of our Fiscal 2023 guidance would be $3.10. We are confident in our resilient business model which enables delivering on our long-term financial commitments of 6% – 10% EPS growth and 4% dividend growth.”
About UGI Corporation
UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, natural gas utilities in West Virginia, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas in the Mid-Atlantic region of the United States and California and internationally in France, Belgium, and the Netherlands.
Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.
