Transportadora de Gas del Sur (TGSU2) Q4 2024 earnings summary

Executive summary

• Commissioned the second module of the Tratayén Conditioning Plant, raising capacity to 28 million cu m/day after $350 million CapEx over two years.

• Revenues increased 56% year-over-year to Ps. 348,465 million, driven by tariff adjustments and higher volumes.

• Eliminated regulated LPG prices, allowing domestic butane sales at export parity, expected to boost annual EBITDA by $30 million.

• S&P Global Ratings upgraded credit rating to B- from CCC in February 2025.

• Multiple pipeline and compressor expansions completed or underway, enhancing gas transport capacity.

Financial highlights

• Reported net income of ARS 129.6 billion in Q4 2024, reversing a net loss of ARS 51 billion in Q4 2023.

• EBITDA for Q4 2024 reached ARS 192.7 billion, with 42% from transportation and 58% from non-regulated businesses.

• Free cash flow for Q4 2024 was Ps. 80,215 million, up from Ps. 18,599 million in Q4 2023.

• Cash position increased 9% to ARS 797 billion (approx. $775 million) in Q4 2024.

• Negative net debt of Ps. 216,429 million as of December 31, 2024, compared to positive net debt of Ps. 76,202 million a year earlier.

Outlook and guidance

• Maintenance CapEx expected to be sustained, with ARS 334 billion guidance for 2025-2029.

• Tariff review process ongoing; company requested a 22.7% increase and a 9.98% real weighted average cost of capital.

• Anticipates more frequent tariff adjustments, potentially every six months or more, based on CPI and wholesale price indices.

• Expansion of Perito Moreno pipeline (14 million cu m/day, with option for 6 million more) pending bidding process, with partial capacity possible by winter 2026.

• ENARGAS expected to issue a new regulatory framework for 2025–2029; regulatory outcome and final tariff adjustments remain pending.