Transportadora de Gas del Sur (TGSU2) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 reached ARS 133 billion, up from ARS 53.8 billion in Q2 2025, with EPS at ARS 176.88 versus ARS 71.44 year-over-year.

• Achieved FID for a $3 billion NGL project, with over 90% of capacity under contract and construction expected to complete by March 2030, projected to generate $1.2 billion in annual exports.

• Credit ratings upgraded by S&P (B- to B) and Moody's (B2 to B1) following Argentina's sovereign rating improvement.

• Revenues increased to ARS 535.5 billion from ARS 464.1 billion, driven by strong Liquids segment performance.

• Comprehensive income and EPS rose sharply year-over-year, reflecting robust operational and financial performance.

Financial highlights

• EBITDA for Q2 2026 was ARS 133.1 billion, up from ARS 60.2 billion in Q2 2025.

• Liquids segment EBITDA surged to ARS 82.3 billion from ARS 33.9 billion, driven by higher sales volumes and international prices.

• Cash position increased by ARS 274 billion to ARS 2,206 billion ($1.5 billion equivalent) at quarter-end.

• Operating profit rose to ARS 216.3 billion, up ARS 52.7 billion year-over-year.

• Free cash flow for Q2 2026 was ARS 227.5 billion, up from ARS 43.5 billion in Q2 2025.

Outlook and guidance

• CapEx for the NGL project distributed as: $500 million (2026), $800 million (2027), $1 billion (2028), $600 million (2029), remainder in Q1 2030.

• Maintenance CapEx post-project completion expected at $10 million per year in addition to current $90 million.

• Net debt to EBITDA ratio expected to peak below 3x in 2028 or 2029, well under the 3.5x bond covenant.

• Integrated NGLs Project to be operational by March 2030, with significant export potential.

• Regulatory approval under RIGI regime provides greater predictability for major pipeline expansion.