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UGI'S SEASONAL SECOND-QUARTER LOSS CUT SHARPLY BY IMPACT OF COLDER WEATHER

 UGI'S SEASONAL SECOND-QUARTER LOSS
 CUT SHARPLY BY IMPACT OF COLDER WEATHER
 VALLEY FORGE, Pa., July 27 /PRNewswire/ -- UGI Corp. (NYSE: UGI) today reported a sharp reduction in its seasonal second-quarter loss, due primarily to the impact of colder weather on both gas utility and propane operations during the early part of the period.
 UGI, a holding company with subsidiaries UGI Utilities, Inc., a Pennsylvania gas and electric utility, and AmeriGas, Inc., a national marketer of propane, posted a net loss of $1,409,000 for the quarter ended June 30, vs. a net loss of $5,556,000 in the same period a year ago.
 The loss amounted to 5 cents a share on 18 percent more shares outstanding, compared to a loss of 25 cents a share in last year's second quarter.
 Second-quarter operating income more than doubled, to $11,419,000 from $5,346,000, and revenues increased 7 percent to $133,306,000 from $124,029,000.
 James A. Sutton, chairman and chief executive officer, said the combined operating income of the gas and electric utilities increased 47 percent in the period to $9,819,000 and AmeriGas' operating income more than doubled, to $4,655,000 from $1,897,000.
 The utilities' improvement resulted entirely from gas utility operations which benefited from colder-than-normal weather in April and May and an expanded customer base, Sutton said. Sales volume in the gas utility's growing heating markets increased 26 percent and the unit's operating income climbed 64 percent to $8,424,000. Sutton noted that the gas utility has added 3,400 new residential, commercial and industrial heating customers since the beginning of the year.
 Electric utility operating income dropped 10 percent to $1,395,000 in the quarter, he said. Higher operating expenses and the effects of cooler June weather on energy sales for air conditioning more than offset the benefit of the colder weather in April and May.
 As reported, the electric utility on June 12 filed for an annual increase of $4.6 million in its base rates.
 Sutton said the improved results of AmeriGas reflect the benefits of colder April and May weather than a year ago across its national propane markets and a $1.8 million reduction in operating expenses. These gains were partially offset by reduced margins in highly competitive markets. AmriGas also benfited from a $962,000 reduction in interest expense in the period, the result of its lower levels of debt.
 UGI's earnings for the six months ended June 30 increased 17 percent to $24,909,000 from $21,222,000 in the first half of 1991. Earnings per share, including 4 cents from discontinued operations, were 93 cents on 21 percent more shares outstanding, vs. 97 cents in the six-month period a year ago. Revenues declined to $376,102,000 from $388,324,000, due primarily to lower wholesale propane volumes and the pass-through to propane customers of lower supply prices.
 Earnings for the 12 months ended June 30 increased 34 percent to $27,960,000 from $20,792,000. Earnings per share, including the 4 cents from discontinued operations, amounted to $1.05 on 26 percent more shares outstanding. The company earned 99 cents a share in the previous 12-month period. Twelve-month revenues increased 10 percent to $697,016,000 from $635,294,000.
 /delval/
 -0- 7/27/92
 /CONTACT: Vince Testa of UGI, 215-337-1000/
 (UGI) CO: UGI Corporation; UGI Utilities, Inc.; AmeriGas, Inc. ST: Pennsylvania IN: UTI SU: ERN


MK-CC -- PH015 -- 3582 07/27/92 14:09 EDT
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Publication:PR Newswire
Date:Jul 27, 1992
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