Transportadora de Gas del Sur (TGSU2) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was ARS 40.3 billion, down from ARS 119.7 billion year-over-year, mainly due to lower financial yields and extraordinary climate event expenses.

• EBITDA for Q2 2025 totaled ARS 163 billion, with 53% from regulated transportation and 47% from non-regulated businesses, but declined year-over-year due to inflation and higher costs.

• Revenues decreased to ARS 347.6 billion from ARS 369.3 billion, with declines in Liquids and Natural Gas Transportation partially offset by Midstream growth.

• Board approved a dividend payment of ARS 200 billion (~$170 million) paid in June.

• License for natural gas transportation extended for 20 years (2027-2047).

Financial highlights

• Natural Gas Transportation EBITDA for Q2 2025 was ARS 85.6 billion, down from ARS 118.2 billion, mainly due to insufficient tariff adjustments and high inflation.

• Liquids segment EBITDA dropped over 50% to ARS 25.3 billion, impacted by ARS 16.6 billion in extraordinary flood-related expenses and lower sales volumes.

• Midstream and Other Services EBITDA rose to nearly ARS 52 billion, driven by higher transported and conditioned gas volumes.

• Net financial results for Q2 2025 were a loss of ARS 59.4 billion, mainly due to lower financial asset income and higher FX losses.

• Cash position at Q2 2025 end was ARS 676 billion (~$565 million), down 33% sequentially.

Outlook and guidance

• Monthly inflation adjustments to tariffs now in place, indexed 50% to CPI and 50% to WPI, with future EBITDA for regulated business expected to reach $300 million annually, subject to inflation and FX dynamics.

• Perito Moreno pipeline expansion project to be awarded in October 2025, with commissioning by April 2027 and a 15-year capacity sale.

• NGL project financial decision expected by year-end, pending cost evaluations and discussions with producers.