Comment on Dispositions of Energy Marketing Business in the United Kingdom and France
UGI Corporation’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022 included a subsequent event footnote disclosing (i) the impact of the sale of UGI Corporation’s energy marketing business in the United Kingdom as well as (ii) the potential sale of the French energy marketing business. An incremental pretax loss of approximately $220 million was recognized in the first quarter of Fiscal 2023 in connection with the completed sale in the United Kingdom, largely attributable to the fair value of net derivative assets sold along with customer contracts as of the transaction date. This incremental pre-tax loss is not expected to impact UGI Corporation’s adjusted earnings per share. Similarly, the expected loss in connection with the fair value of net derivative assets associated with the potential sale of the French energy marketing business would also have no impact on UGI Corporation’s adjusted earnings per share.
Moreover, UGI Corporation’s fiscal 2023 earnings guidance included in the Company’s November 17, 2022 press release considers the impact of the sale of the UK energy marketing business effective October 21, 2022 and assumes divestiture of the energy marketing business located in France in the first quarter of fiscal 2023.