Transportadora de Gas del Sur S.A. (TGSU2) Q4 2025 earnings summary

Executive summary

• Issued a $500 million, 10-year bond in November 2025 at 7.75–8% yield, oversubscribed with $1.3 billion in orders, marking the longest maturity in company history.

• Proceeds fund $780 million CapEx for Perito Moreno pipeline expansion and regulated pipeline upgrades.

• Net income/comprehensive income for Q4 2025 ranged from ARS 22,666 million to ARS 124 billion, with year-over-year changes driven by non-recurring items, impairment reversals, and financial results.

• Revenues increased year-over-year, led by Natural Gas Transportation and Midstream segments.

• Cash position increased significantly in Q4 2025, reaching ARS 1,808 billion ($1.25 billion USD).

Financial highlights

• Q4 2025 EBITDA ranged from ARS 170.5 billion to ARS 259 billion, with 57% from non-regulated business.

• Natural Gas Transportation EBITDA was ARS 109.8 billion, up from ARS 107.1 billion in Q4 2024.

• Liquids segment EBITDA fell to ARS 83.9 billion from ARS 102 billion year-over-year, mainly due to export price declines and higher costs.

• Midstream and other services EBITDA rose to ARS 60.7 billion, driven by higher volumes from Vaca Muerta.

• Net financial results for Q4 2025 were negative, mainly from higher interest costs and lower investment yields.

Outlook and guidance

• Confident in NGL project progress, expecting FID before June 2026.

• No significant change expected in liquids prices for 2026, though geopolitical events could have a positive impact.

• No dividend payments anticipated in 2026 due to ongoing project investments.

• Launched a US$780 million transportation capacity expansion project, with an open season for firm capacity and bids for prepaid capacity.