Core Insights - TGS, in collaboration with Viridien, has launched the Megabar Extension Phase I survey in the Barreirinhas Basin offshore Northern Brazil, covering an area of 5,300 sq km [1][2] - The survey aims to enhance geological understanding and support exploration activities in a region with proven petroleum systems and significant discoveries in nearby basins [2][4] Company Overview - TGS is a global leader in energy data and intelligence, providing advanced data and insights to support exploration and production in the energy sector [6] - The company utilizes cutting-edge technology, including proprietary GeoStreamer technology, to acquire high-quality 3D seismic data [3][5] Industry Context - The Barreirinhas Basin is gaining momentum due to recent licensing activities by international oil companies (IOCs) and the success of Brazil's 5 Cycle Permanent Concession Offer [2] - The Megabar Extension survey is positioned to provide early-mover advantages for explorers in this underexplored area, potentially leading to new exploration opportunities [5]

Group 1 - TGS ASA has issued 198,926 new shares due to the vesting of Performance Stock Units (PSUs) and Restricted Stock Units (RSUs) announced on 11 August 2025 [2] - The capital increase has been registered with the Norwegian Register of Business Enterprises, resulting in a new share capital of NOK 49,149,936.50 [2] - The total number of shares outstanding after the capital increase is 196,599,746, with each share having a par value of NOK 0.25 [2]

Core Insights - The significant change in Transportadora de Gas del Sur's (TGS) performance is attributed to rate normalization and an automatic inflation adjustment scheme, which positively impacted transport revenues [1] Group 1: Company Performance - TGS experienced improved earnings due to the implementation of rate normalization and inflation adjustments [1] Group 2: Investment Approach - The investment strategy focuses on value companies with strong long-term potential, indicating a preference for stable and growth-oriented investments [1]

Core Insights - TGS has been awarded a significant streamer contract offshore Indonesia, covering approximately 10,000 square kilometers [1] - The project will primarily focus on acquiring 3D seismic data, with a final phase dedicated to 4D seismic data acquisition for production monitoring [2] - The survey is set to commence in Q4 2025 and will last for an estimated total duration of eight months [2] Company Overview - TGS is a leading provider of energy data and intelligence, offering advanced technology and solutions across the entire energy value chain [4] - The company utilizes proprietary GeoStreamer technology and purpose-built vessels to ensure high-quality data delivery and efficient acquisition [3] - TGS supports exploration and production of energy resources globally, backed by a comprehensive range of products and an extensive energy data library [4]

Core Points - TGS has awarded Performance Share Units (PSUs) and Restricted Share Units (RSUs) to 283 key employees, as approved by shareholders at the Annual General Meeting on 8 May 2025 [1][2] - The maximum number of new shares to be issued under the awarded PSUs and RSUs is 1,900,000 [4] Summary of PSUs - PSUs are granted to executive and senior leadership teams, vesting on 15 August 2028, contingent on continued employment [2] - Upon vesting, PSUs convert to shares based on performance against three metrics: Absolute Total Shareholder Return (TSR), Relative TSR, and HSE and Sustainability goals [2] - The number of shares issued upon vesting can range from 0% to 150% of the PSUs granted, determined by performance over a three-year period [2] Summary of RSUs - RSUs are granted to executives, senior leadership teams, and other key employees, also vesting on 15 August 2028, contingent on continued employment and satisfactory performance ratings [3] - Upon vesting, RSU holders will receive an equivalent number of TGS shares [3] Company Overview - TGS provides advanced data and intelligence to the energy sector, offering a comprehensive range of insights to support exploration and production of energy resources [4]

Core Points - TGS ASA has authorized the granting of Performance Stock Units (PSUs) and Restricted Stock Units (RSUs) to key employees as part of the 2022 Long Term Incentive Plan, with the measurement period set from January 1, 2022, to December 31, 2024 [1][2] - The PSUs vested at a final payout of 60.0% based on performance metrics, resulting in 180,810 shares issuable to sixteen holders, while 107,367 shares are issuable to sixty-seven employees for the RSUs [2] - A total of 288,177 shares at par value NOK 0.25 are available for issuance to 83 PSU/RSU holders [2] Company Information - TGS provides advanced data and intelligence to the energy sector, offering a comprehensive range of insights to support exploration and production of energy resources [4] - The company utilizes leading-edge technology and solutions across the entire energy value chain, backed by a global and diverse energy data library [4]

Core Points - TGS has secured a streamer acquisition contract in the East Mediterranean, with operations set to begin in Q3 2025 and lasting approximately 30 days [1][2] Company Overview - TGS is a leading provider of energy data and intelligence, offering advanced data and insights to companies in the energy sector [2] - The company utilizes the Ramform acquisition platform and proprietary GeoStreamer technology to ensure high data quality for clients [2] - TGS provides a comprehensive range of products and advanced data technologies, supported by a global and diverse energy data library, making it a trusted partner in energy resource exploration and production [2]

Financial Data and Key Metrics Changes - The total net income for Q2 2025 was ARS 40.3 billion, a decline from ARS 119.7 billion in the same quarter of 2024, primarily due to a negative variation of ARS 76 billion in financial results [7][8][13] - EBITDA for the natural gas transportation segment decreased to ARS 85.6 billion from ARS 118.2 billion in Q2 2024, reflecting a reduction of ARS 32 billion [9][10] - EBITDA for the liquids business fell over 50% to ARS 25.3 billion compared to ARS 52.6 billion in Q2 2024, largely due to extraordinary expenses from a flood [10][11] Business Line Data and Key Metrics Changes - The natural gas transportation segment's EBITDA decreased by ARS 32 billion, attributed to transitional tariff adjustments and inflation impacts [9][10] - The liquids segment's EBITDA decline was influenced by ARS 16.6 billion in extraordinary expenses from the March flood and a decrease in sales volume from 250,000 metric tons to 211,000 metric tons [10][11] - Midstream and other services saw an increase in EBITDA to ARS 52 billion from ARS 41.5 billion in 2024, driven by higher sales from increased natural gas transportation volumes [12] Market Data and Key Metrics Changes - The average natural gas transportation volume rose from 25 million permits per day in 2024 to 30 million in Q2 2025, while natural gas conditioning volume increased from 16 million to 27 million cubic meters per day [12] - The price of natural gas increased from ARS 2.9 to ARS 3.3 per million ETU, impacting EBITDA negatively [11] Company Strategy and Development Direction - The company is focused on expanding its transportation capacity, with a bid submitted for the Perito Moreno pipeline expansion project, which is expected to be awarded on October 13, 2025 [5][6] - The company has received a 20-year extension of its license, enhancing its operational stability and long-term planning [6] Management's Comments on Operating Environment and Future Outlook - Management noted that the monthly tariff adjustments will help mitigate some inflation impacts, but the overall operating expenses have increased due to the tariff revision process [30] - The company expects to generate ARS 300 million annually from the regulated EBITDA after the tariff process is completed, contingent on inflation rates in Argentina [41] Other Important Information - The company reported a cash position decrease of 33% to ARS 676 billion, with EBITDA generation during Q2 amounting to ARS 163 billion [14] - A dividend payment of ARS 200 billion was approved and paid in June 2025 [7] Q&A Session Summary Question: Confirmation of impairment related to the climate event - Management confirmed an impact of ARS 16.6 billion due to extraordinary expenses from the flood [18] Question: Update on the NCL project timeline - Management is evaluating costs and expects results by September [20] Question: Sustainability of current EBITDA levels - Management indicated that the midstream services segment is expected to continue growing [22] Question: Recovery of profitability in the liquids segment - Full operations resumed on May 7, and management expects improved performance moving forward [24] Question: Increase in general costs - Management explained that the tariff revision process has led to higher operational costs compared to the previous year [26] Question: Status of insurance claims related to the flood - Insurance assessments are ongoing, with expectations for compensation numbers in two to four months [28] Question: Outlook for the regulated transportation segment - Management stated that future revenues will depend on the level of monthly adjustments based on inflation and wholesale price indices [30] Question: Perito Moreno pipeline tender status - Management confirmed they are the only bidder and expect the contract to be awarded on October 13 [32] Question: Financial investment decision timing - Discussions with gas producers are ongoing, with potential project advancement expected by the end of the year [33] Question: Total cost of maintenance due to the flood - Estimated total costs are around ARS 40 million for all expenses and asset impairments [34] Question: Amount received for ship or pay contract compensation - Management confirmed an amount of ARS 7 million received [35] Question: Deterioration of account receivable for the regulated transportation segment - The issue was attributed to a specific marketer, with 50% of the bad debt recovered [37] Question: CapEx for the Perito Moreno pipeline expansion - Management indicated a CapEx of around ARS 500 million for the project [38] Question: Financing for the GPM pipeline project - Management expects to finance imports of around ARS 70 million and use internal cash for the project [42]

Transportadora de Gas del Sur S.A. (TGS) Q2 2025 Earnings Call August 06, 2025 10:00 AM ET Speaker0Good morning, everyone. I'm Carlos Salmado, Head of Investor Relations. I would like to welcome everyone to TGS Second Quarter twenty twenty five Earnings Video Conference. TGS issued its earnings release yesterday. If you did not receive a copy of the release, please contact us embargoesore.Tche dot com. Ar. Before we begin the call, I would like to inform you that this event is being recorded and all partici ...

Financial Performance - TGS's revenue for Q2 2025 was Ar$163,878 million[26], with an EBITDA of Ar$85,662 million[26] - Natural Gas Transportation revenue reached Ar$145,615 million[30], while EBITDA was Ar$52,631 million[30] - Liquids revenue amounted to Ar$59,772 million[35], with an EBITDA of Ar$25,355 million[34] - Midstream and Other Services generated revenue of Ar$76,320 million[39], and an EBITDA of Ar$51,929 million[39] - Net financial results showed a loss of Ar$59,400 million in Q2 2025 compared to a gain of Ar$17,260 million in Q2 2024, representing a variation of Ar$(76,660) million[40] Key Events and Developments - The company was granted a 20-year license extension (2027-2047) by the National Executive Power[17] - A dividend payment of Ar$200 billion was approved by the Board of Directors[20] - The Perito Moreno pipeline (PMP) is undergoing a 14MMm3/d capacity expansion[12] - TGS was the only bidder in a call tender by ENARSA for a 90,000 HP compression capacity expansion, expected to be commissioned by April 2027[19]