Core Insights - TGS has announced the Pelotas Norte Phase I multi-client 3D survey in the Pelotas Basin, covering approximately 14,800 square kilometers across 21 exploration blocks, primarily in un-held acreage expected to be included in upcoming bid rounds [1][3] Project Details - A Ramform Titan-class vessel will mobilize for the survey later in Q4 2025, with the project expected to run into Q3 2026, utilizing TGS GeoStreamer technology for high-resolution 3D seismic data [2] - The Pelotas Basin is characterized by early basin carbonates and passive margin clastic sequences, with three organic-rich intervals from Albian, Turonian, and Paleocene ages, attracting significant industry interest due to geological similarities with West Africa [3] Industry Context - CEO Kristian Johansen highlighted the acceleration of exploration activity in the Pelotas Norte Basin, with major oil companies increasing their presence, and emphasized that the survey will enhance seismic coverage and assist clients in understanding geological structures [4] - The addition of Pelotas Norte Phase I brings the total number of Ramform Titan-class vessels operating offshore Brazil to three for the remainder of 2025 and into 2026 [4]

Core Insights - Transportadora de Gas del Sur (TGS) reported strong quarterly results driven by the reopening of the Cerri Complex and increased liquids exports from Vaca Muerta [1] Company Performance - The reopening of the Cerri Complex significantly contributed to TGS's quarterly performance [1] - The boom in liquids exports from Vaca Muerta has positively impacted TGS's financial results [1] Investment Considerations - The company is characterized by good cash flow generation, growing income, and healthy margins [1] - TGS has a solid asset base and sustainable debt levels, making it an attractive investment opportunity [1]

Revenue Performance - Total revenues for the nine-month period ended September 30, 2025, increased by Ps. 93,597 million, or 8.8%, compared to the same period in 2024, reaching Ps. 1,156,194 million[15]. - Revenues from the Natural Gas Transportation segment accounted for 42% of total revenues in 9M2025, with an increase of Ps. 113,706 million, or 30.4%, totaling Ps. 488,348 million[17][20]. - Liquids Production and Commercialization revenues decreased by Ps. 55,932 million, or 11.5%, to Ps. 429,204 million, representing 37% of total revenues[25][26]. - Midstream revenues increased by Ps. 35,823 million in 9M2025 compared to 9M2024, driven by higher natural gas transportation and conditioning services[32]. - Total revenues for 3Q2025 reached Ps. 426,518 million, an increase of Ps. 88,591 million or 26.2% compared to 3Q2024[42][44]. - The Liquids Production and Commercialization segment saw revenues rise by Ps. 70,423 million, driven by increased volumes and domestic prices[47]. - For the nine-month period ended September 30, 2025, total revenues reached Ps. 1,144,610,999, an increase from Ps. 1,048,180,095 in the same period of 2024, reflecting a growth of approximately 9.2%[140]. - Total revenues from Natural Gas Transportation services for the nine-month period ended September 30, 2025, were Ps. 488,347,656, compared to Ps. 374,641,517 in 2024, marking an increase of approximately 30.4%[140]. - Total revenues from Liquids Production and Commercialization for the nine-month period ended September 30, 2025, were Ps. 417,620,460, compared to Ps. 470,718,499 in 2024, indicating a decrease of about 11.3%[140]. Financial Results - The company recorded a total comprehensive income of Ps. 275,227 million, a decrease of Ps. 18,129 million, or 6.2%, compared to the previous year[15]. - Financial results for 9M2025 showed a total loss of Ps. 49,211 million, a significant decline compared to a profit of Ps. 19,074 million in 2024, primarily due to higher foreign exchange losses[36][37]. - Operating profit for 3Q2025 was Ps. 172,026 million, reflecting a 24.2% increase from Ps. 138,459 million in 3Q2024[42][43]. - Total comprehensive income for 3Q2025 was Ps. 112,059 million, a 62.9% increase from Ps. 68,802 million in 3Q2024[43][44]. - The company reported a net financial loss of 49,211,068 thousand pesos for the nine-month period ended September 30, 2025, compared to a net financial gain of 19,073,623 thousand pesos in 2024[69]. - The total financial results for the nine-month period ended September 30, 2025, showed a loss of Ps. 49,211,068, contrasting with a profit of Ps. 19,073,623 in the same period of 2024[159]. Costs and Expenses - The net cost of sales increased by Ps. 22,873 million, or 4.5%, totaling Ps. 531,923 million, while gross profit rose by Ps. 70,724 million, or 17.8%, to Ps. 624,775 million[15][33]. - The cost of sales for the nine-month period ended September 30, 2025, was Ps. 531,923,146, up from Ps. 509,050,248 in 2024, representing an increase of approximately 4.5%[140]. - The administrative expenses for the nine-month period ended September 30, 2025, totaled Ps. 40,695,136, compared to Ps. 43,468,072 in 2024, showing a decrease of about 6.3%[140]. - Operating expenses for the nine-month period ended September 30, 2025, totaled ARS 737,794,732, significantly higher than ARS 181,220,463 in 2024[157]. Cash Flow and Liquidity - Cash flows from operating activities increased to Ps. 411,003 million, up by Ps. 22,317 million from 9M2024, attributed to lower working capital despite higher income tax payments[39][40]. - The company reported a net increase in cash and cash equivalents of Ps. 13,695 million during 9M2025, despite a decline from the previous year[39][40]. - Cash flows provided by operating activities increased to 411,003,010 thousand pesos in 2025 from 388,685,926 thousand pesos in 2024, reflecting a growth of 5.7%[76]. - Cash and cash equivalents as of September 30, 2025, were ARS 73,030,151, a marginal decrease from ARS 73,140,992 at the end of 2024[148]. - The company reported a significant increase in government grants, totaling ARS 11,583,102 for the nine-month period ended September 30, 2025, compared to ARS 14,417,202 in 2024[154]. Assets and Liabilities - Non-current assets as of September 30, 2025, were valued at Ps. 2,916,417,221 million, showing stability compared to previous periods[54]. - Total assets as of September 30, 2025, amounted to 4,104,978,778 thousand pesos, a slight decrease from 4,139,887,141 thousand pesos at the end of 2024[71]. - Total liabilities as of September 30, 2025, were ARS 138,149,038, reflecting the company's ongoing financial commitments[149]. - Non-current liabilities increased to 1,000,933,899 thousand pesos as of September 30, 2025, compared to 966,043,680 thousand pesos at the end of 2024[71]. - Total current assets as of September 30, 2025, were Ps. 1,074,778,222, with cash and cash equivalents amounting to Ps. 73,030,151[192]. Tariff Adjustments and Regulatory Changes - The company implemented a series of tariff adjustments, including an initial increase of 3.67% as part of the Five-Year Tariff Review for the 2025–2030 period[18][19]. - The company concluded the Five-Year Tariff Review process, which defined the initial tariff increase and the investment and expenditure plan for the period 2025-2030[130]. - The 5YTR established by ENARGAS for the period 2025-2030 includes a periodic tariff adjustment mechanism based on the Consumer Price Index (CPI) and the Wholesale Price Index (IPIM)[199]. - The Secretariat of Energy will oversee modifications to contracts or licenses regarding tariffs, with a new monthly periodic updating of transportation tariffs introduced on June 4, 2025[200]. Economic Context - The Argentine economy showed a year-over-year GDP growth of 6.3% despite a quarter-over-quarter contraction of 0.1% in Q3 2025[95]. - Accumulated inflation as of September 30, 2025, was 22%, with a year-over-year Consumer Price Index increase of 31.8%[96]. - The company is committed to monitoring economic variables that may impact its operations and financial situation amid ongoing macroeconomic challenges[107].

Core Insights - TGS and Chevron have signed a three-year capacity agreement for marine streamer and OBN acquisition services, with a minimum commitment of 18 months for these services [1] - The agreement aims to enhance collaboration on seismic acquisition projects and technology development across various geophysical areas [1][2] - The St Malo 4D OBN reservoir monitoring contract in the Gulf of America will be included in this agreement, initiating immediate collaboration [1] Company Overview - TGS provides advanced data and intelligence to the energy sector, utilizing leading-edge technology and a comprehensive data library to support exploration and production [3] - The company emphasizes its role as a trusted partner in the energy industry, offering insights that help clients make informed decisions [3]

Financial Data and Key Metrics Changes - The total net income for Q3 2025 was ARS 112 billion, up from ARS 68.8 billion in Q3 2024, primarily driven by improved performance in the liquids business and midstream segment [6][8] - EBITDA for natural gas transportation decreased to ARS 102.4 billion from nearly ARS 113 billion in Q3 2024, reflecting tariff adjustments that were insufficient to offset inflation impacts [7][8] - EBITDA for the liquids segment tripled to ARS 55.2 billion in Q3 2025, compared to ARS 18.2 billion in Q3 2024, due to increased export volumes and higher prices [8][9] Business Line Data and Key Metrics Changes - The liquids segment saw a significant increase in EBITDA, attributed to higher export volumes rising from 43,000 to 104,000 metric tons and increased ethane sales [9][10] - The midstream and other services segment's EBITDA rose to ARS 61.2 billion from ARS 46.7 billion in Q3 2024, driven by higher sales from increased natural gas volumes transported [11] Market Data and Key Metrics Changes - The average transported natural gas billable volume increased from 29 million cubic meters per day in Q3 2024 to 32 million cubic meters per day in Q3 2025 [11] - The natural gas price increased from $3.1 to $3.4 per million BTU, negatively impacting EBITDA by ARS 4.3 billion [10] Company Strategy and Development Direction - The company plans to invest $560 million to expand the Perito Moreno pipeline's capacity and an additional $220 million for regulated pipelines between Saliceto and Greater Buenos Aires [4][5] - TGS is evaluating participation in a new gas pipeline project to supply gas to LNG facilities planned by CESA Southern Energy [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the current production levels are extraordinary due to the richness of the gas stream from Vaca Muerta, which is expected to remain substantial in the coming years [20] - However, it was indicated that gas production typically decreases in the fourth quarter compared to the third quarter, which may affect overall output [20] Other Important Information - The cash position increased by 22% to ARS 875 billion, approximately $638 million at the official exchange rate [12] - The company recorded a positive variation in financial results amounting to ARS 31.1 billion, mainly due to increased income from financial assets [12] Q&A Session Summary Question: Breakdown of the $780 million capex for the expansion project - The company expects to spend $150 million this year, $450 million in 2026, and the remaining $27 million in the first five months of 2027 [16] Question: Status of the insurance claim for the Complejo Cerri event - The expected recovery amount is over $50 million, with $10 million anticipated this year and the remainder in the following year [18] Question: Sustainability of current production and margins in the liquids segment - Current production levels are extraordinary, but lower gas production is expected in Q4 compared to Q3, which may affect margins [20] Question: Acceleration of cash capex deployment until year-end - Cash capex is expected to be higher than previous levels, with significant spending anticipated in the last quarter [23] Question: Expected income tax payments in the next quarter - Income tax payments in Q4 are expected to be similar to those in Q3 [27] Question: FID for the NGL fractionation facility - The company is working hard on the project, with FID expected in the first quarter of next year [28] Question: Participation in the NGL project with partners - The company aims to have partners in the liquids project, particularly in transportation and fractionation [30] Question: Further midstream segment synergy by 2027 - The company expects to benefit from increased transport capacity in the midstream business due to the expansion [31]

Financial Data and Key Metrics Changes - The total net income for Q3 2025 was ARS 112 billion, up from ARS 68.8 billion in Q3 2024, primarily driven by improved performance in the liquids business and midstream segment [6][8] - EBITDA for natural gas transportation decreased to ARS 102.4 billion from nearly ARS 113 billion in Q3 2024, with a decline of ARS 10.5 billion attributed to insufficient tariff adjustments to offset inflation [7][8] - EBITDA for the liquids segment tripled to ARS 55.2 billion in Q3 2025 from ARS 18.2 billion in Q3 2024, driven by increased export volumes and higher prices [9][10] - The cash position increased by 22% to ARS 875 billion, approximately $638 million at the official exchange rate [12][13] Business Line Data and Key Metrics Changes - The liquids segment saw a significant increase in EBITDA, primarily due to higher export volumes rising from 43,000 to 104,000 metric tons [9] - The midstream and other services segment's EBITDA rose to ARS 61.2 billion from ARS 46.7 billion in Q3 2024, driven by increased billable volumes of natural gas transported [11] Market Data and Key Metrics Changes - The average transported natural gas billable volume increased from 29 million cubic meters per day in Q3 2024 to 32 million cubic meters per day in Q3 2025 [11] - The natural gas price increased from $3.1 to $3.4 per million BTU, negatively impacting EBITDA by ARS 4.3 billion [10] Company Strategy and Development Direction - TGS plans to invest $560 million to expand the Perito Moreno pipeline's capacity and an additional $220 million for regulated pipelines between Saliceto and Greater Buenos Aires [4][5] - The company is evaluating participation in a new gas pipeline project to supply LNG facilities planned for completion by 2027-2028 [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the current high levels of production and margins in the liquids segment may not be sustainable into Q4 2025, with expectations of lower gas production [20][21] - The company anticipates that international liquid prices may decrease in 2026 compared to the current year [21] Other Important Information - The company is expecting to recover over $50 million from insurance claims related to the Complejo Cerri event, with partial payments expected this year [18] - CapEx for the expansion project is expected to be higher, with $150 million planned for this year, primarily in Q4 [23] Q&A Session Summary Question: Breakdown of the $780 million CapEx for the expansion project - Management indicated that $150 million is expected to be spent this year, $450 million in 2026, and the remaining $27 million in early 2027 [16] Question: Status of insurance claims for the Complejo Cerri event - The estimated recovery amount is over $50 million, with $10 million expected this year and the remainder in the following year [18] Question: Sustainability of current production and margins in the liquids segment - Management stated that while current production levels are extraordinary, they may not be sustainable into Q4 due to seasonal variations [20][21] Question: Acceleration of cash CapEx deployment until year-end - Management confirmed that cash CapEx is expected to be higher than previous levels due to the ongoing expansion project [23] Question: Expected income tax payments in the next quarter - Management indicated that income tax payments in Q4 are expected to be similar to those in Q3 [27] Question: FID for the fractionation facility regarding liquids - Management is working hard on the project, with FID expected in Q1 of the following year [28] Question: Participation in the NGL project and potential partnerships - Management is considering partnerships for the liquids project, particularly in transportation and fractionation [30] Question: Synergies in the midstream segment by 2027 - Management confirmed that the midstream business will benefit from increased transport capacity and volumes [31]

Financial Data and Key Metrics Changes - The total net income for Q3 2025 was ARS 112 billion, up from ARS 68.8 billion in Q3 2024, primarily driven by improved performance in the liquids business and midstream segment [6][8] - EBITDA for natural gas transportation decreased to ARS 102.4 billion from nearly ARS 113 billion in Q3 2024, attributed to insufficient tariff adjustments to offset inflation [7][8] - Liquids segment EBITDA tripled to ARS 55.2 billion in Q3 2025 from ARS 18.2 billion in Q3 2024, driven by increased export volumes and higher prices [8][9] - Cash position increased by 22% to ARS 875 billion, approximately $638 million at the official exchange rate [12][13] Business Line Data and Key Metrics Changes - Natural gas transportation EBITDA declined by ARS 10.5 billion due to tariff adjustments and rising operating expenses [7][8] - Liquids segment saw a significant increase in EBITDA, primarily due to higher export volumes and favorable pricing conditions [9][10] - Midstream and other services EBITDA rose to ARS 61.2 billion from ARS 46.7 billion in Q3 2024, driven by increased billable volumes of natural gas transported [11] Market Data and Key Metrics Changes - The average transported natural gas billable volume increased from 29 million cubic meters per day in Q3 2024 to 32 million cubic meters per day in Q3 2025 [11] - The natural gas price increased from $3.1 to $3.4 per million BTU, negatively impacting EBITDA by ARS 4.3 billion [10] Company Strategy and Development Direction - TGS plans to invest $560 million to expand the Perito Moreno pipeline's capacity and an additional $220 million for regulated pipelines between Saliceto and Greater Buenos Aires [4][5] - The company aims to commercialize the incremental capacity and collect a dollar-denominated unregulated tariff during the 15-year operational period [5] Management Comments on Operating Environment and Future Outlook - Management noted that the current high levels of production and margins in the liquids business may not be sustainable into Q4 2025 due to seasonal variations [21][22] - The company anticipates that international liquid prices may be lower in 2026 compared to the average of the current year [22] Other Important Information - The company is working on a project to build a new gas pipeline towards LNG facilities planned by CESA Southern Energy, with no immediate updates on participation [27] - The expected recovery amount from the insurance claim related to the Complejo Cerri event is estimated to exceed $50 million, with partial collection expected this year [19] Q&A Session Summary Question: Breakdown of the $780 million capex for the transportation system expansion - Management indicated that $150 million will be spent this year, $450 million in 2026, and the remaining $27 million in the first five months of 2027 [17] Question: Status of the insurance claim for Complejo Cerri - The expected recovery amount is over $50 million, with $10 million anticipated this year and the remainder next year [19] Question: Sustainability of current production and margins in the liquids business - Management stated that while current production levels are extraordinary, they may not be sustainable into Q4 due to seasonal factors [21][22] Question: Acceleration of cash capex deployment until year-end - Management confirmed that cash capex is expected to be higher than previous levels, particularly in the last quarter of the year [24] Question: Expected income tax payments in the next quarter - Income tax payments in Q4 are expected to be similar to those in Q3 [28] Question: FID for the NGL fractionation facility - Management is working hard on the project, with FID expected in the first quarter of next year [29] Question: Participation in the NGL project with partners - The company is looking to have partners in the liquids project, particularly for transportation and fractionation facilities [31]

Financial Data and Key Metrics Changes - The company reported a total net income of EUR 112 billion in Q3 2025, compared to EUR 68.8 billion in the same quarter of 2024, primarily driven by better performance in the liquids business and midstream segment [8][9] - EBITDA for the natural gas transportation business totaled EUR 102.4 billion, slightly below the EUR 113 billion recorded in 2024, with a decline of EUR 10.5 billion attributed to tariff adjustments and inflation effects [8][9] - Liquids segment EBITDA tripled to EUR 55.2 billion in Q3 2025 from EUR 18.2 billion in Q3 2024, driven by increased export volumes and higher domestic prices [9][10] - Cash position increased by 22% to EUR 875 billion, equivalent to approximately USD 638 million at the official exchange rate [13] Business Line Data and Key Metrics Changes - The liquids segment saw a significant increase in exported volumes from 43,000 metric tons to 104,000 metric tons, contributing EUR 18 billion to EBITDA [9] - Natural gas transportation EBITDA declined due to a tariff adjustment that resulted in EUR 29.2 billion, insufficient to offset inflation adjustments of EUR 42.2 billion [8][9] - Midstream and other services EBITDA rose to EUR 1.2 billion, driven by higher sales from increased natural gas transportation volumes [10][11] Market Data and Key Metrics Changes - The average transported natural gas volume increased from 29 million cubic meters per day in 2024 to 32 million cubic meters per day in Q3 2025 [11] - The natural gas price increased from USD 3.1 to USD 3.4 per million BTU, negatively impacting EBITDA by EUR 4.3 billion [10] Company Strategy and Development Direction - The company plans to invest USD 560 million to expand the Perito Moreno pipeline's capacity and an additional USD 220 million for regulated pipelines between Sal De Quello and Greater Buenos Aires [6][7] - The company is evaluating participation in a new gas pipeline project to supply gas to LNG facilities planned for 2027-2028 [28] Management Comments on Operating Environment and Future Outlook - Management noted that the current production levels are extraordinary due to the richness of the gas stream from Vaca Muerta, which is expected to remain substantial in the coming years [22] - However, gas production is anticipated to be lower in Q4 compared to Q3, affecting overall production levels [22] - Management expressed uncertainty regarding future liquid prices, indicating they may be lower than the average of the current year [24] Other Important Information - The company expects to recover over USD 50 million from an insurance claim related to a previous event, with partial recovery anticipated this year [20][21] - The company recorded a positive variation in financial results due to increased income from financial assets and a decrease in inflation exposure loss [12] Q&A Session Summary Question: Breakdown of CapEx for the expansion project - The company plans to spend USD 150 million this year, USD 450 million in 2026, and the remainder in early 2027, with financing already secured for part of the project [18] Question: Status of insurance claim recovery - The expected recovery amount is over USD 50 million, with USD 10 million anticipated this year and the remainder in the following year [21] Question: Sustainability of liquids production and margins - Current production levels are extraordinary, but Q4 production is expected to be lower, with potential price decreases in 2026 [22][24] Question: Acceleration of cash CapEx deployment - Cash CapEx is expected to be higher than previous levels, particularly in the last quarter of the year [26] Question: Participation in new gas pipeline project - The company is currently evaluating participation in the new gas pipeline project [28] Question: Income tax payments in the next quarter - Income tax payments in Q4 are expected to be similar to those in Q3 [30] Question: FID for the Tertation facility - The company is working hard on the project, with FID expected in Q1 of next year [32] Question: Midstream segment synergy by 2027 - The company anticipates benefits from increased transport capacity in the midstream business [38]

Company Overview - TGS is the largest gas pipeline in Latin America, transporting 61% of Argentina's natural gas consumption through 9,248 km of pipelines[25] - The company has a firm contracted capacity of 89 MMm3/Day[25] - TGS operates as a natural gas processor with a capacity of 47 MMm3/Day and produces 1.1MM MT of liquids annually[25] Financial Performance - TGS reported LTM EBITDA of US$341MM from natural gas transportation[25] - Liquids segment contributed US$176MM in LTM EBITDA[26] - Midstream and other services generated US$156MM in LTM EBITDA[27] - As of September 30, 2025, TGS has US$634 MM in cash and financial investments[131] Tariff and License - A 675% tariff increase was implemented through tariff normalization measures[46] - TGS secured a license extension until 2047[52] Vaca Muerta Expansion - TGS is undertaking a 14 MMm3/d Transportation Capacity Expansion Project Proposal[56] - The company has invested US$700 million in Vaca Muerta midstream infrastructure[98] - The North tranche of the Vaca Muerta project has a capacity of 35 MMm3/d, while the South tranche has a capacity of 25 MMm3/d[98]

Group 1 - TGS ASA shares will be traded ex dividend at NOK 1.56 (USD 0.155) starting from 30 October 2025 [1]