Parent Of U.S. Retail Supplier Ends Current Talks To Sell French Energy Marketing Business, Provides Update On Disposition
December 2, 2022 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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UGI Corporation 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."
UGI's fiscal year 2023 began on October 1, 2022
In Fiscal 2022, UGI International marketed and supplied natural gas in France to various small and medium enterprises and similar customers
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, UGI said
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."