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UGI INCREASES ectors of UGI Corp. (NYSE: UGI) today declared a 3.1 percent increase in the dividend on the holding company's common stock to a quarterly rate of 33.5 cents a share, payable July 1, 1993, to holders of record May 28. The previous quarterly rate was 32.5 cents a share. The increase is

 In addition, UGI's board approved a resolution changing the fiscal year of the company and its subsidiaries to one ending Sept. 30 from Dec. 31. The change will become effective this year, making 1993 a nine-month transition period.
 UGI also reported that its net income for the first quarter ended March 31 was lower than in the same period a year ago because of a higher effective
income tax rate resulting from the change in fiscal years. The company recorded net income of $25,986,000, down from $27,142,000 in the 1992 quarter.
 James A. Sutton, chairman and chief executive officer, said the effects of the higher income tax rate more than offset the income improvement from UGI's operations.
 Earnings per share on 14 percent more shares outstanding amounted to 86 cents, compared to $1.02 in last year's corresponding quarter. The increased number of shares and the higher income tax rate reduced per share results by 9 cents and 5 cents, respectively, Sutton noted. Earnings per share in the 1992 quarter included 4 cents from discontinued operations and 2 cents from reduced take-or-pay liabilities in the gas utility.
 Operating income in the quarter increased to $60,236,000 from $59,298,000 and revenues rose to $267,917,000 from $242,796,000.
 Net income for the 12 months ended March 31 increased 47 percent to $34,243,000 or $1.20 a share on 12 percent more shares outstanding, from $23,251,000 or 91 cents a share, in the previous 12-month period. Operating income climbed 23 percent to $110,103,000 from $89,401,000 and revenues reached $733,215,000 from $687,739,000.
 Sutton said UGI's gas and electric utilities and propane operations all benefited from colder weather in the first quarter. It was 6 percent colder than a year ago in the gas utility's service area and 2 percent and 16 percent colder, respectively, in electric utility and propane markets. Although the weather was colder than last year, it was still 5 percent warmer than normal across propane's national markets, he said.
 Combined operating income of utilities increased 4.2 percent to $35,423,000 in the period. Operating earnings of $27,535,000 from propane were virtually unchanged from the prior year.
 Operating income of the gas utility increased to $32,618,000 from $31,362,000 in the same quarter a year ago which included $1,070,000 from the reduction in take-or-pay liabilities. The improvement resulted from a 7.7 percent increase in volume sold in core residential, commercial and industrial markets due to colder weather and new customers, as well as higher delivery service volumes. Reduced margins on interruptible volumes partially offset the gains.
 Electric utility operating income increased to $2,805,000 in the quarter from $2,631,000. The effects of a 2.4 percent increase in sales and base-rate increase which became effective on the first of the year more than offset increased operating expenses.
 In propane, retail sales volume increased 12.4 percent as a result of colder 1993 weather. However, higher product costs and competitive pressures reduced unit margins.
 Sutton said the change in fiscal years to one ending Sept. 30 "is more appropriate for UGI's seasonal utility and propane operations and consistent with the practices of our peers. After 1993, our fiscal year will include the full November-through-March heating season, the peak earnings period for our businesses," he said.
 /delval/
 -0- 4/27/93
 /CONTACT: Vince Testa of UGI, 215-337-1000/
 (UGI)


CO: UGI Corporation ST: Pennsylvania IN: UTI SU: ERN

MJ-MP -- PH022 -- 1491 04/27/93 14:55 EDT
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Date:Apr 27, 1993
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