Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — Gas Transporter of the South — Q2 2024 Earnings Presentation
23 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Aug 5, 2024
Slide 1: tgs announces results for the second quarter (2Q) ended June 30, 2024
tgs announces results for the second quarter (“2Q”) ended on June 30, 2024 (1) Transportadora de Gas del Sur (" tgs ", "the Company", “us”, “our”, or “we”) is the leader in Argentina in the transportation of natural gas, transporting approximately 60% of the gas consumed in the country, through more
Slide 2: Buenos Aires, Argentina, August 5, 2024
Buenos Aires, Argentina, August 5, 2024 During the 2Q2024, total comprehensive income amounted to Ps. 85,708 million, or a Ps. 113.86 income per share (Ps. 569.29 per ADS), compared to a total comprehensive income of Ps. 44,969 million, or Ps. 59.74 per share (Ps. 298.69 per ADS) in the second quart
Slide 3: Operating profit for 2Q2024 totaled Ps. 126,648 million
Operating profit for 2Q2024 totaled Ps. 126,648 million, Ps. 70,463 million above 2Q2023. This variation was mainly due to higher revenues from the Natural Gas Transportation and Midstream and Telecommunications (“Midstream”) segments amounting to Ps. 66,983 million and Ps. 7,559 million, respective
Slide 4: Revenues by business segment 2Q2024 vs 2Q2023
Revenues by business segment 2Q2024 vs 2Q2023 (in million of Argentine pesos) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 [] a i¢) 2024 2023 2024 2023 2024 2023 Natural Gas Transportation Liquids Midstream mArgentine pesos without inflation adjustment mArgentine pesos with inflation adjustme
Slide 5: Cost of sales and administrative and selling expenses decreased
C ost of sale s and administrative and selling expenses decreased by Ps. 18,513 million in 2Q2024 from 2Q2023. This variation was due to the lower cost of natural gas consumed for liquids production, equivalent to Ps. 21,968 million (lower price in accordance with IAS 29 restatement effect) as well
Slide 6: Analysis of operating profit by business segment
80,000 70,000 60,000 50,000 40,000 a fe} a o a o < 5 = o oD 2 zt ra ° < 30,000 Analysis of operating profit by business segment Natural Gas Transportation Liquids § 2Q2024 @ 2Q2023 Midstream
Slide 7: Natural gas transportation revenues share of total
Natural gas transportation revenues accounted for approximately 44% and 24% of total revenues in 2Q2024 and 2Q2023, respectively. Revenues from this segment are derived mainly from firm natural gas transportation contracts, which represented approximately 85% of the total revenues for this segment i
Slide 8: Natural gas transportation: ENARGAS tariff increase
This business segment is subject to ENARGAS regulation, and as mentioned in the “ Highlights of 2Q2024 and beyond ” section above, the tariffs applicable to this business segment received a tariff increase of 675%, effective as of April 3, 2024. The increase in operating profit was mainly due to the
Slide 9: Liquids segment operating profit lower
Operating profit for this business segment in 2Q2024 was Ps. 2,581 million lower than in 2Q2023, reaching Ps. 35,590 million (Ps. 38,171 million in 2Q2023). This decline was mainly explained by the decrease in revenues of Ps. 20,966 million and the increase in repair and maintenance expenses and thi
Slide 10: Liquids sales volumes and revenues
202024 202023 (in tons) Local market Ethane 85,701 103,858 (18,157) Beene Bobs Soke «iy Butane 31,493 45,682 (14,189) ‘Subtotal 177,998 206,207 (28,209) Foreian market Propane 20,014 38,374 (18,360) me ona 2087 a Natural gasoline, 28,202 28,551 (349) ‘Subtotal 71,800 80,992 (9,192) Total 249,798 287
Slide 11: Midstream and Telecommunications
Midstream and Telecommunications Midstream and Telecommunications business segment includes mainly services provided by tgs at Vaca Muerta, representing approximately 16% and 17% of our total revenues in 2Q2024 and 2Q2023, respectively.
Slide 12: Midstream operating profit rose
Operating profit rose by Ps. 5,605 million mainly as a result of the Ps. 7,559 million increase in revenues during 2Q2024, which was partially offset by higher operating costs of Ps. 1,674 million. The increase in revenues was primarily explained by the nominal effect of the exchange rate on U.S. do
Slide 13: Investment proposal for incremental natural gas volumes at Litoral node
Finally, on June 19, 2024, tgs presented an investment proposal under the private initiative figure with the purpose of making available incremental volumes of natural gas starting the winter of 2026 at the Litoral node, which will allow for the substitution of natural gas and liquids imports during
Slide 14: Maturity profile of financial debt as of June 30, 2024
The maturity profile of our financial debt as of June 30, 2024 and giving effect to the issuance of the 2031 Notes for the cancellation of the 2025 Notes:
Slide 15: Liquidity and capital resources
Liquidity and capital resources The net variation in cash and cash equivalents for 2Q2024 and 2Q2023 is broken down as follows:
Slide 16: Net variation in cash and cash equivalents
202024 202023 i (in million of Argentine pesos) ‘Gash flows provided by operating adivities 98,338 70,865 WaT2 ‘Gash flows used in investing adiivities (62,839) (100,632) 37,793 ‘Gash flows used in financing activities (43,934) (077) 2,917) Net_variation in cash and cash equivalents, 1,504 (0,843) 3
Slide 17: Reconciliation of free cash flows
The table below shows a reconciliation of the free cash flows for the 2Q2024 and 2Q2023 periods:
Slide 18: 2Q2024 vs. 2Q2023 cash flow
2Q2024 vs. 2Q2023 During 2Q2024, the cash flow provided by operating activities amounted to Ps. 98,338 million, while in 2Q2023 the cash flow provided by operating activities totaled Ps. 70,866 million. The positive variation is mainly due to higher operating profit. This effect was partially offset
Slide 19: Financial Information for the six and three-month periods
Transportadora de Gas del Sur S.A. Financial Information for the six ("6M") and three-month periods (""2Q") ended June 30, 2024 and 2023 (In millions of Argentine pesos, except for per share and per ADS information in pesos or where otherwise indicated) 292024 292023 6M2024 6M2023 Natural Gas Transp
Slide 20: Financial results for the three and six-month periods
Financial results for the three and six-month periods ended June 30, 2024 and 2023 (In million of Argentine Pesos) 292024 292023 6M2024 6M2023 Financial income Interest 7,815 3,026 27,778 6,356 Foreign exchange gain 18,574 59,265 42,601 108,258 Subtotal 26,389 62,292 70,379 114,614 Financial expense
Slide 21: Business Segment information
Business Segment information Natural Gas mana Gas Liquids Midstream —Telecommunications, Total (Cin million of Argentine Pesos) Revenues 142,128 256,205 39582 2,758 420,652 Depreciation (34,299) (4,127) (23,890) = (2,316) Operating profit 41,681 112,174 49,604 aa 204,081 62023 Revenues 35,565) 265,5
Slide 22: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position as of June 30, 2024 and December 31, 2023 (in million of Argentine pesos) 06/30/2024 12/31/2023 Assets Non Current assets Proparty, plart and equipment 1555.51 1,785,370 Investments in associates 73 10 Ctherfinandal assets at arrottized cost 27,53 192,742
Slide 23: Consolidated Statement of Cash Flows for the six month periods
Consolidated Statement of Cash Flows for the six month periods ended June 30, 2024 and 2023 (an million of Argentine Pesos) 6M2024 6M12023 Cash flows provided by operating activities Total comprehensive income for the period 152,039 71,016 Reconciliation of net income to cash flows provided by opera
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