UGI Corp. Posts Profit In Q3; Reaffirms FY10 Outlook - Update

(RTTNews) - Energy products distributor UGI Corp. (UGI: News ) on Tuesday reported a profit for the third quarter compared to a loss in the year-ago period that included a charge related to competition authority proceedings in France. The company's gas utility and energy service segments reported increases in net income for the latest quarter. The company also reiterated its earnings outlook for fiscal year 2010.

UGI is a holding company with propane marketing, utility and energy marketing subsidiaries. Through subsidiaries, the company owns 44% of U.S. retail propane marketer AmeriGas Partners, L.P. (APU: News ), and also owns Antargaz, an LPG distributor in France.

The Pennsylvania-based company's net income for the third quarter was $3.4 million or $0.03 per share compared to net loss of $3.6 million or $0.03 per share in the year-ago period.

Results for the prior-year period include a charge of $10.0 million or $0.09 per share related to competition authority proceedings in France.

On average, four analysts polled by Thomson Reuters expected the company to report earnings per share of $0.07 for the quarter. Analysts' estimate typically excludes one-time items.

Revenues for the third quarter edged down to $961.9 million from $962.2 million in the year-ago period and came in below analysts' consensus revenue estimate of $1.01 billion.

Lon Greenberg, chairman and chief executive officer of UGI, said, "The overall financial performance of each of our business units was in line with our expectations, given the adverse effect of significantly warmer than normal weather principally in our domestic utility and propane businesses. We continued to make good progress during the quarter on our previously disclosed gas-fired generation and liquefied natural gas midstream investments and we remain on schedule to complete these projects in the summers of 2011 and 2012, respectively.

Greenberg added, "In addition, we continue to make progress in implementing our strategy of growing our domestic and international propane businesses through the acquisition of quality marketers in the areas we serve."

AmeriGas Propane segment's net loss for the third quarter was flat with the year-ago period at $2.9 million. Volume declined on warmer weather compared to last year, while total margin decreased on lower volumes sold. Revenues for the segment rose 6.4% to $396.6 million.

International Propane segment's net loss narrowed to $3.5 million from $8.0 million a year ago, as a decline in margin was offset by the absence of a Euro 7.1 million charge related to competition authority proceedings in France, in addition to lower operating and administrative expenses at both Antargaz and Flaga. Revenues for the quarter increased 19.4% from the same period last year to Euro 144.5 million.

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