Transportadora de Gas del Sur SA TGS

Latest Results (12.01.2026):

Transportadora de Gas del Sur S.A. (tgs) — 4Q2024: tgs reported strong 4Q2024 results with total revenues of Ps. 348,465 million and operating profit of Ps. 198,291 million, driving total comprehensive income of Ps. 129,619 million (Ps. 172.19 per share; Ps. 860.96 per ADS) versus a comprehensive loss of Ps. 51,090 million in 4Q2023. The quarter benefited from tariff adjustments in the Natural Gas Transportation segment, higher liquids volumes and dollar-linked revenue effects, and a reversal of a PPE impairment; financial results improved materially due to a much lower exchange rate variation versus 4Q2023.

Top-line and operating profit

Total revenues rose to Ps. 348,465 million in 4Q2024 (up Ps. 125,309 million YoY). Operating profit was Ps. 198,291 million, an increase of Ps. 148,975 million versus 4Q2023.

Comprehensive income and per-share figures

Total comprehensive income for 4Q2024 was Ps. 129,619 million (Ps. 172.19 per share; Ps. 860.96 per ADS) compared with a comprehensive loss of Ps. 51,090 million (Ps. -67.87 per share; Ps. -339.36 per ADS) in 4Q2023.

Reversal of PPE impairment

The Natural Gas Transportation segment recorded a Ps. 39,625 million reversal of PPE impairment in 4Q2024 (IAS 36), which materially supported segment and consolidated operating profit.

Natural Gas Transportation segment

Segment revenues were Ps. 133,930 million (up Ps. 89,710 million YoY) and operating profit was Ps. 99,052 million (vs. an operating loss of Ps. 25,064 in 4Q2023). Tariff increases during 2024 and early 2025 were the main driver; repairs/maintenance and inflation restatement partially offset gains.

Liquids Production & Commercialization

Liquids revenues reached Ps. 158,864 million (up Ps. 38,434 million YoY) and operating profit was Ps. 74,896 million (up Ps. 29,333 million). Production rose to 319,980 tons (up 33,163 tons) and sales volumes increased ~25% versus 4Q2023. IAS 29 restatement reduced reported results but dollar-linked and volume effects were positive.

Midstream & Telecommunications

Midstream & Telecom contributed ~16% of revenues in 4Q2024; operating profit declined by Ps. 4,475 million, mainly reflecting the negative impact of inflation restatement (IAS 29) partially offset by higher dollar-linked revenues and increased Vaca Muerta conditioning/transport services.

Financial results and net debt

Financial results improved by Ps. 154,002 million YoY, largely from a much lower exchange difference loss (down ~Ps. 232,002 million) and lower loss on monetary position. Net debt was a negative Ps. 216,429 million as of December 31, 2024 (i.e., a net cash position), compared to positive net debt of Ps. 76,262 million at year-end 2023.

Cash flow and liquidity

Operating cash flow for 4Q2024 was Ps. 165,457 million (vs. Ps. 113,969 million in 4Q2023). Cash used in investing activities was Ps. 115,866 million (down vs. prior year) and financing activities used Ps. 21,316 million (vs. provided Ps. 15,992 million in 4Q2023).

Regulatory and corporate developments

ENARGAS published a series of transitional tariff charts through Feb 1, 2025; a public hearing on the Five‑Year Tariff Review (RQT) was held Feb 6, 2025 (final RQT resolution pending). tgs proposed a WACC of 9.98% (real, after tax) implying a 22.7% tariff increase; ENARGAS proposed a 7.18% WACC with a CPI/WPI adjustment mix. Separately, the Secretary of Energy removed the Plan Hogar maximum sale price cap for LPG (Resolution No. 15/2025).

Operations and rating

tgs completed the second conditioning module at Tratayén in Feb 2025, bringing total conditioning capacity to 28 MMm³/d (+6.6 MMm³/d from the new module). On Feb 5, 2025 S&P upgraded tgs’s local and international debt rating from "CCC" to "B-".