UGI Corporation (NYSE:UGI) Q3 2022 Earnings Conference Call August 4, 2022 9:00 AM ET

Company Participants

Roger Perrault - President, Chief Executive Officer

Ted Jastrzebski - Chief Financial Officer

Robert Beard - Executive Vice President, Natural Gas, Global Engineering & Construction

Tameka Morris - Director, Investor Relations

Conference Call Participants

Paul Zimbardo - Bank of America

Michael Gaugler - Janney Montgomery

Mark Solecitto - Barclays

Operator

Good day and thank you for standing by. Welcome to the UGI Corporation third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during this session, you will need to press star-one-one on your telephone. Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today.

Tameka Morris

Good morning everyone and welcome to UGI Corporation’s fiscal 2022 third quarter earnings call. Joining me today are Roger Perrault, President and CEO; Ted Jastrzebski, CFO; and Bob Beard, Executive Vice President, Natural Gas, Global Engineering and Construction, and Procurement. Roger and Ted will provide an overview of our results and the entire team will then be available to answer your questions.

Before we begin, let me remind you that our comments today include certain forward-looking statements which management believes to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict. Please read our earnings release and our most recent annual report for an extensive list of factors that could affect results. We assume no duty to update or revise forward-looking statements to reflect events or circumstances that are different from expectations.

We will also describe our business using certain non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures are available within our presentation.

Now I’m pleased to turn the call over to Roger.

Roger Perrault

Thank you Tameka, and good morning everyone. I hope that you’ve all had the opportunity to review our earnings release reporting the third quarter results. On today’s call, we’ll provide a business update, review our financial results for the quarter, and discuss the outlook for the rest of this fiscal year before completing with a question and answer session.

For the fiscal third quarter, UGI’s reportable segments delivered adjusted EBIT of $100 million versus $98 million in the prior fiscal year. We were pleased with the strong results from our natural gas businesses largely driven by increased margin from capacity management and commodity marketing, as well as higher disc margin. The global LPG businesses were impacted by warmer than prior year weather in Europe, rising cost inflation, and difficulty in filling key delivery-related positions in the U.S. These impacts were partially offset by benefits from the disciplined cost control actions that were implemented earlier in the year.