Transportadora de Gas del Sur S.A.

For Q4 2025, TGS reported net income of ARS 124 billion versus ARS 170.5 billion in Q4 2024. Natural gas transportation EBITDA was ARS 109.8 billion, up from almost ARS 107.1 billion; liquids EBITDA was ARS 83.9 billion, down from ARS 102 billion; and midstream and other services EBITDA rose 36% to ARS 60.7 billion from ARS 44.5 billion. Management said total EBITDA in the quarter was nearly ARS 259 billion, with 57% generated by nonregulated businesses. The company reported cash of ARS 1,808 billion, up ARS 864 billion in the quarter, and noted CapEx of almost ARS 96 billion plus working capital growth of ARS 76 billion. For guidance, management said the Perito Moreno expansion should see bidding for 40% of capacity on March 16 and the remaining 60% after ENARSA reallocates existing capacity, potentially before May; the project is expected to require about $780 million in total CapEx, with more than $500 million this year and completion of three new compressor stations by May 2027. For the NGL project, management expects FID before June, maybe in May, and estimated total project CapEx at about $2.9 billion.

Carlos Almagro did not give a strategic presentation beyond guiding the Q&A, while Alejandro Basso framed the company’s strategy around expanding midstream and NGL infrastructure and moving existing projects toward execution. His tone was confident on project progress, saying the Perito Moreno expansion is moving as expected, the NGL project is advancing in negotiations with gas producers, and he expects FID before June, maybe in May. He also emphasized that nonregulated activities are becoming increasingly important to overall results.

Basso focused on the quarter’s financial bridge and funding plan. He said the ARS 500 million bond, issued at an 8% yield and oversubscribed with a $1.3 billion order book, is financing roughly ARS 780 million of Perito Moreno-related CapEx, alongside $67 million in bank loan agreements for imports. He highlighted the ARS 17.9 billion negative swing in financial results due mainly to higher interest costs from greater indebtedness, and noted the cash balance rose to ARS 1,808 billion, while CapEx was almost ARS 96 billion and taxes paid were ARS 61.6 billion.

Analysts asked about the NGL project timeline, and management said it is still moving ahead, with negotiations underway and FID expected before June, possibly in May. Questions on competition from YPF and shale capacity were answered by saying competition is a risk but the company is working with YPF and other producers. Management also said tariff adjustments in transportation are moving smoothly and are following inflation formulas, and that the recent weakness in international NGL prices is not expected to change the outlook materially, though geopolitical conflicts could support natural gasoline pricing.