OREANDA-NEWS. UGI Corp., parent of US propane distributor AmeriGas, anticipates a normal winter in the US despite a slow start to the heating season thus far, executives told analysts on the company's earnings call today.

Low propane prices in the US, where inventories stand at record levels, are boosting margins for retailers like AmeriGas, executives said on today's call. Even though heating demand has failed to materialize thus far, AmeriGas chief executive Jerry E. Sheridan said it's too early to assume it won't materialize late in the season.

"October certainly was warmer than normal, about 20pc warmer, but we tend not to get too excited as December has more (heating) degree days than October and November combined," he said. The company may delay seasonal hiring of drivers in order to cut costs if demand fails to emerge, he added.

AmeriGas saw propane sales volumes fall by 8.1pc year-over year in the quarter ended 30 September, to 193.9mn gallons. Retail volumes sold for fiscal 2015 decreased 7.2pc to 1.18bn gallons from 1.28bn gallons in 2014. The decrease in retail gallons sold reflects temperatures that were 8.9pc warmer than the prior year, according to the National Oceanic and Atmospheric Administration (NOAA).

In the US, November propane prices are well below last year's pricing. LST propane prices averaged 45.375?/USG during the first week of November this year versus 85.625?/USG during the same period in 2014, a decrease of 47.01pc.

AmeriGas reported net income of $211.2mn for the fiscal year ended September 30, 2015 compared to $289.9mn in the prior year, a decrease of 27.15pc.