Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — Gas Transporter of the South — FINANCIAL STATEMENT AS OF SEPTEMBER 30, 2019
43 slides from Transportadora De Gas Del Sur Sa Class B's investor presentation, Jan 3, 2020
Slide 1: Activities of the Company in 9M2019 and 9M2018
Activities of the Company in 9M2019 and 9M2018 Revenues Revenues for 9M2019 decreased by Ps. 2,478.3 million from the same period last year. This decrease is mainly due to the decrease in revenues of the Liquids Production and Commercialization business segment. Natural Gas Transportation During 9M2
Slide 2: Other Services and pipeline expansion proposal
As of the date of the issuance of these Interim Condensed Financial Statements, the National Government, through the Ministry of Finance, authorized increases in the price of products marketed under Plan Hogar program. The prices per ton of butane and propane, respectively, amounted to: (i) Ps. 9,15
Slide 3: Other operating results
Other operating results The other operating results recorded a positive variation of Ps. 879.0 million mainly as a result of the recognition in May 2018 of the adverse award of the Arbitration held with Pan American Energy S.L. Suc. Arg. and Pan American Sur S.A. This effect was partially offset by
Slide 4: Net financial results variation
This positive variation is mainly due to the lower net negative exchange rate difference of Ps. 2,380.7 million due to the lower devaluation of the Argentine peso against the US dollar over
Slide 5: Cash and cash equivalents variation in 9M2019
During 9M2019, the net variation in cash and cash equivalents suffered a negative variation of Ps. 20,648.8 million. The cash flows used in investment activities amounted to Ps. 18,335.3 million. This was due to the greater investments in capital expenditures made in order to conclude the Five-Year
Slide 6: 3Q2019 results
During 3Q2019, total income amounted to Ps. 41.0 million, compared to Ps. 551.2 million for 3Q2018. Total revenues decreased Ps. 3,304.4 million in 3Q2019 compared to 3Q2018. Revenues from the Natural Gas Transportation segment in 3Q2019 decreased by Ps. 551.8 million, compared to 3Q2018. This negat
Slide 7: Liquids sales volumes in short tons
302019 392018 in short tones, Local Market Ethane 6,996 66,905 59,909) 69.5%) Propane 84,679 56,374 28,305 50.2% Butane 47,130 52,002 4,872. 9.4% Subtotal local market 138,805 175,281 (36,476) (20.8%) Foreign Market Propane 18,834 39,673 20,839) 52.5%) Butane 20,592 12,812 7,780 60.7% Natural gasoli
Slide 8: 3Q2019 financial results and consolidated financial position summary
In 3Q2019, financial results experienced a positive variation of Ps. 722.0 million compared to 3Q2018. This variation is mainly due to the impact of the gain on monetary position and the gain derived from derivative financial instruments. These effects were partially offset by the lower interest gen
Slide 9: Consolidated financial position summary
09/30/2019 12/31/2018 (in thousands of pesos) Non-current assets 64,100,994 53,354,546 Current assets 20,018,915 31,868,903 Total assets 84,119,909 85,223,449 Shareholders” equit 39,967,988 42,575,652 Minority interest 24 14 Total shareholders equity 39,968,012 42,575,666 Non-current liabilities 36,
Slide 10: 6. Consolidated Cash Flow Summary
6. Consolidated Cash Flow Summary Summary of the consolidated cash flow information for 9M2019 and 9M2018:
Slide 11: 7. Statistical Data (Physical units)
7. Statystical Data (Physical units)
Slide 12: Natural Gas Transportation and NGL statistics
Natural Gas Transportation ‘Average firm contracted capacity (in billions of cubic feet per day ("Bcf/d")) Average daily deliveries (in Bcf/d) NGL production and commercialization Production Ethane (in short tones) Propane (in short tones) Butane (in short tones) Natural Gasoline (in short tones) ¢
Slide 13: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 14: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 15: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 16: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 17: Nine-month period ended September 30, 2019 by segment
Nine-month period ended September 30, 2019 Production and Natural Gas Commercialization Other Transportation of Liquids Services __Telecommunications __Hliminations Total Revenues 15,602,461 14,516,843 1,631,234 193,195 id 31,943,733 Intercompany revenues from sales 428,374 = = z (428,374) = Cost of
Slide 18: 9. Summary of significant statement of financial position items
9. SUMMARY OF SIGNIFICANT STATEMENT OF FINANCIAL POSITION AND STATEMENT OF COMPREHENSIVE INCOME ITEMS a) Other receivables
Slide 19: Other receivables
09/30/2019 12/31/2018 Current Non Current Current ‘Non Current VAT credit balance 1,057,668 = 413,125 - (Other tax receivables 59,604 o57 13,742 212 Prepaid ewenses 90,052 = 65,704 z ‘Advances to suppliers 1,249,657 = 2,546,668 = Subsidies receivables 131,442 = 402,036 : (Other Receivables UT 50,235
Slide 20: Movement of allowance for doubtful accounts
The movement of the allowance for doubtful accounts is as follows:
Slide 21: Allowance for doubtful accounts
For doubtfull accounts Balances as of 12/31/2017 Additions Applications Decreases Balances as of 09/30/2018 Additions ©) Applications 182,327 Decreases Balances as of 12/31/2018 182,327 Inflation adjustment restatement Additions (49,806) Applications Decreases Balances as of 09/30/2019 132,521 @ Inc
Slide 22: Other liabilities
09/30/2019 12/31/2018 Current Non Current Current Non Current UT Other liabilities 235,597 = 101,290 = Provision for compensation for the Board of Directors and Supervisory Committee 4,659 - 7,442 - Others LTT = 2,262 = Total 241,973 = 110,994 z
Slide 23: Cost of sales inventories
For the three-month periods ended September 30 For the nine-month periods ended September 30, 2019 2018 2019 2018 Inventories at the beginning of the year 633,019 871,072 495,678 252,803 2,417,377 3,006,105 8/394,516 8/882,110 Operating costs (Note 97.) 2,778,845 2,486,509 7,512,240 7,143,424 Invent
Slide 24: Expenses by nature
Accounts Salaries, wages and other compensations Social security taxes Compensation to Directors and Supervisory Committee Professional services fees Technical operator assistance fees Materials Third parties services Telecommunications and post expenses Rents Transports and freight Easements Office
Slide 25: Other operating results, net
l) Other operating results, net
Slide 26: Other financial assets at amortized cost
m) Other financial assets at amortized cost
Slide 27: Payroll and social security taxes payable
09/30/2019 12/31/2018 Current Non Current Current Non Current Vacation benefit payable 253,043 = 234,841 = Supplementary annual salary payable 41,485 = = = Annual bonus payable 147 834 = 183,488 = Social security taxes payable 82,449 = 92,705 = UT 9,725 = 16,787 = Total 534,536 a 527,821 =
Slide 28: 11. Joint Arrangements
11. JOINT ARRANGEMENTS The breakdown of the amounts included in the statements of financial position related to the Company's participation in the UT as of September 30, 2019 and December 31, 2018, and its results for the nine-month periods as of September 30, 2019 and 2018 is the following:
Slide 29: 12. Share of gain / (loss) from associates
12. SHARE OF GAIN / (LOSS) FROM ASSOCIATES
Slide 30: Share of gain/(loss) from associates
For the three-month periods ended September 30, For the nine-month periods ended September 30, 2019 2018 2019 2018 EGS (in liquidation) 5 @3i) 6i (50) TCU 331 3,883 (662) 34i7 Tink 17,778 3,533) (4,810) (6 343) Total 18,318 (781)
Slide 31: Property, plant and equipment
09/30/2019 31/12/2018 Cost Depreciation ‘Accumulated at ‘Accumulated at Beginning End of the beginning atthe end Net book Net book ‘Account of the year Additions_-—_—Retirements Transfers the period of the year Retirements For the period Rate % of the period value value Pipelines 34,932,247 37,096 1
Slide 32: Loans denominated in US dollars
Loans are totally denominated in US dollars. On August 15, 2019, the General and Ordinary Shareholders Meeting decided to expand the 2018 Notes from USD 700 million to USD 1,200 million. This extension was authorized by the CNV on October 9, 2019 by resolution RESFC–2019-20486-APN-DIR#CNV. The activ
Slide 33: Financial leasing maturities
The following are the maturities of the financial leasing in force as of September 30, 2019 (not including issuing costs):
Slide 34: Deferred tax assets and liabilities
Deferred tax assets and (| ies) 09/30/2019 _12/31/2018 Tax credits discounted value loss z 532 ‘Account receivables discounted value 460 3127, Provisions for legal claims and other provisions 144,229 138,930 Financial leases 568,564 560,755. Contract liabilities 389,278 437,494 Deferred sales = 3.90
Slide 35: 17. Financial instruments by category and hierarchy
17. FINANCIAL INSTRUMENTS BY CATEGORY AND HIERARCHY 1.1 Financial instrument categories There have been no significant changes regarding the accounting policies for the categorization of financial instruments to the policies disclosed in the financial statements as of December 31, 2018. The categori
Slide 36: Financial instruments at September 30, 2019
September 30, 2019 Financial assets Financial assets at fair value _held to maturity Total CURRENT ASSETS Trade receivables = 5,235,097 5,235,097 Other receivables = 440,932 440,932 Derivative financial instruments 489,201 = 489,201 Other financial assets at amortized cost = 8/598,382 8/598,382 Cash
Slide 37: Fair value measurement hierarchy and estimates
1.2 Fair value measurement hierarchy and estimates According to IFRS 13, the fair value hierarchy introduces three levels of inputs based on the lowest level of input significant to the overall fair value. These levels are: Level 1: includes financial assets and liabilities whose fair values are e
Slide 38: Assets and liabilities in foreign currency
09/30/2019 12/31/2018 Foreign currency Amount Foreign currency ‘Amount and amount Exchange in local and amount in local (in thousands) rate currency (in thousands) currency CURRENT ASSETS Cash and cash equivalents us$ 24,228 57.390 1,390,445 us$ 361,017 18,626,258 Derivative financial instruments us
Slide 39: Significant transactions with related parties
The detail of significant transactions with related parties for the nine-month periods ended September 30, 2019 and 2018 is as follows: Nine-month period ended September 30, 2019:
Slide 40: Services received from SACDE
Additionally, during the nine-month period ended September 30, 2019, the Company received from SACDE Sociedad Argentina de Construcción, construction engineering services for Ps. 1,083,742, which are activated within the balance of the works in progress.
Slide 41: 23. Associates and joint agreement
23. ASSOCIATES AND JOINT AGREEMENT Associates with significant influence Link: Link was created in February 2001, with the purpose of the operation of a natural gas transportation system, which links TGS’s natural gas transportation system with the Cruz del Sur S.A. pipeline. The connection pipeline
Slide 42: Report on review of interim financial information
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION To the Shareholders, President and Directors of Transportadora de Gas del Sur S.A. Legal address: Don Bosco 3672, 5 th Floor Ciudad Autónoma de Buenos Aires CUIT N° 30-65786206-8 I. Report on the Financial Statements Introduction 1. We have reviewed
Slide 43: Auditor's conclusion and legal requirements report
English translation of the original report issued in Spanish for publication in Argentina financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and
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