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Transportadora de Gas del Sur S.A.(TGS)
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Are You Looking for a Top Momentum Pick? Why Transportadora De Gas Sa Ord B (TGS) is a Great Choice
zacks.com· 2024-05-23 17:01
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...
Transportadora de Gas del Sur S.A.(TGS) - 2023 Q4 - Annual Report
2024-04-24 19:57
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities and Exchange Act of 1934 _____________ City of Buenos Aires, April 24, 2024. For April 24, 2024 Commission file number: 1-13.396 Transportadora de Gas del Sur S.A. Don Bosco 3672, Fifth Floor 1206 Capital Federal Argentina Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F X Fo ...
Transportadora de Gas del Sur S.A.(TGS) - 2023 Q4 - Annual Report
2024-04-24 19:46
Revenue and Financial Performance - 2023年天然气运输公共服务的净收入占总收入的22%[52] - The Liquids production and commercialization segment has represented over 50% of total revenues from 2004 to 2017 and since fiscal year 2021[105] - 65.2% of the company's total consolidated revenues from sales for the year ended December 31, 2023, are denominated in U.S. dollars[167] Regulatory and Government Actions - 根据2017年通过的决议,预计运输费率将增加214.2%,接入和使用费率将增加37%[55] - 2023年12月14日,ENARGAS发布了第704/2023号决议,计划于2024年1月8日举行公开听证会[59] - 2023年12月16日,发布第55/2023号法令,宣布国家能源部门进入紧急状态,直至2024年12月31日[60] - The Argentine government has enacted the Solidarity Law, which froze natural gas and electricity tariffs, impacting revenue generation[81] - The government declared a National Emergency of the Energy Sector, with a utility rates review deadline set for December 31, 2024[82] - The government’s Plan Gas.Ar aims to guarantee natural gas supply and incentivize investments in production, extended until 2028[95] - The Argentine government has created the Transport.Ar program and declared the construction of the NK Pipeline a strategic project, granting a 35-year concession to ENARSA[96] - The Solidarity Law grants the Executive Branch broad legislative powers to ensure public debt sustainability and regulate energy tariffs[218] Economic Conditions and Challenges - 由于阿根廷经济状况,政府于2019年推迟了后续的半年度调整[57] - Argentina's public debt load stands at U.S.$403 billion, including loans from the IMF, with outstanding debt to private bondholders approximately U.S.$134 billion[175] - The primary fiscal deficit for Argentina is projected to be 2.9% of GDP in 2023, up from 2.4% of GDP in 2022[191] - The IMF approved a 30-month extended fund facility to provide Argentina with U.S.$44.1 billion, aimed at strengthening debt sustainability and addressing economic challenges[182] - The Argentine government's ability to finance its deficit is limited due to high levels of public sector indebtedness, which could negatively impact the economy[196] - The Argentine peso depreciated by 356.3% against the US dollar as of December 31, 2023, reaching Ps. 805.45[203] - Argentina's public debt as a percentage of GDP was approximately 88% as of December 31, 2023[208] - Inflation in Argentina has significantly increased operating costs, particularly labor costs, affecting the company's financial condition[207] - The Argentine economy experienced a GDP decrease of 1.6% in 2023, following a growth of 5.2% in 2022[208] - The new administration's emergency measures aim to reduce the fiscal deficit and include a significant cut in public spending and an increase in certain taxes[219] - The recent political instability has led to a decline in market expectations and forecasts for the Argentine economy[212] Operational Risks and Challenges - 公司面临由于未能及时获得费率增加而导致的财务和经济状况恶化的风险[61] - 政府未能及时遵守与费率系统相关的协议可能会对公司的运营结果和财务状况产生负面影响[62] - The company faces risks related to labor union relationships, which could adversely affect business operations and financial condition[66] - The company faces risks related to litigation and administrative proceedings that could materially affect financial conditions and obligations[123] - The company has initiated legal proceedings against regulations that increased natural gas processing costs, which could significantly impact operating margins[110] - The company faces potential environmental risks that could lead to increased operating costs and adversely affect financial condition[128] - New environmental laws in Argentina may impose higher compliance costs, significantly impacting operational results[130] - Increased competition in the Liquids sector may reduce the quality of natural gas available for processing, affecting revenues[136] - The company competes directly with Transportadora de Gas del Norte S.A. for natural gas transportation services, which could impact business operations[137] - The development of the Vaca Muerta natural gas production is contingent on transport infrastructure, which is currently near full capacity[138] Investment and Capital Expenditure - 资本支出计划要求在2017年至2022年期间投资678.6亿比索以改善管道系统的运营和维护[55] - The company has implemented a reduction in current investment plans while ensuring safety, allowing continuity in operations[89] - An investment plan of Ps. 27,690 million is set to be adjusted according to regulatory guidelines, focusing on gas infrastructure works[90] Market and Competitive Environment - The company’s ability to extend or replace transportation contracts may be adversely affected by factors beyond its control, including regulatory changes and competition[86] - The company relies on a long-term agreement for ethane sales with PBB, which is subject to operational conditions that may affect future sales[111] - The volatility in Liquids prices is influenced by geopolitical issues, production variations, and macroeconomic conditions, expected to continue in the future[106] - Stakeholder pressure on financial institutions to limit funding for fossil fuel projects may negatively impact the company's growth opportunities[163] Financial and Credit Risks - A downgrade in credit ratings could lead to increased funding costs and difficulties in raising capital, adversely affecting business operations[143] - The company maintains cash deposits in banks significantly in excess of insured levels, which poses a risk if any of these banks fail[165] - High inflation rates in Argentina could negatively impact the company's business, financial condition, and ability to meet financial obligations[234] External Economic Factors - The ongoing COVID-19 pandemic continues to disrupt global economic activity, contributing to volatility in financial markets[230] - The government implemented mandatory lockdowns during the pandemic, affecting non-essential businesses while oil and gas activities remained exempt[231] - The uncertainty surrounding the Omnibus Law and its potential impact on the Argentine economy creates challenges for the company's future outlook[228]
Transportadora de Gas del Sur S.A.(TGS) - 2023 Q3 - Earnings Call Transcript
2023-11-08 20:00
Financial Data and Key Metrics - Net income for Q3 2023 was ARS4.9 billion, a significant decline from ARS11.4 billion in Q3 2022, primarily due to a ARS5.7 billion negative variation in financial results and a ARS4 billion decrease in liquids EBITDA [5] - Liquids EBITDA decreased by 31% to ARS9 billion in Q3 2023, compared to ARS13 billion in Q3 2022, driven by a 30% decline in LPG prices [6] - Natural gas transportation EBITDA decreased slightly by ARS1 million, impacted by a ARS10.1 billion negative inflation effect on revenues, partially offset by a ARS7.3 billion increase from a 95% transitional tariff hike [17] - Other services EBITDA increased by 46% to ARS10.8 billion, driven by higher natural gas transportation and conditioning volumes [19] - Cash position increased slightly to ARS210.3 billion (approximately $600 million), with 73% of EBITDA generated by non-regulated businesses [20] Business Line Performance - Liquids business saw a decline in revenues due to lower LPG prices, partially offset by higher ethane volumes sold and lower natural gas costs [6][7] - Natural gas transportation volumes rose from 15 million cubic meters per day in Q3 2022 to 23 million cubic meters per day in Q3 2023, while conditioning volumes increased from 10 million to 15 million cubic meters per day [19] - Midstream services in Vaca Muerta are expected to grow significantly, with expansions increasing capacity to 28 million cubic meters per day by 2024 [14][36] Market and Strategic Developments - The company commissioned a 32-kilometer extension of the North Tranche pipeline in Vaca Muerta, increasing capacity to 60 million cubic meters per day [2] - The Argentine government is revising offers for the reversal of the Techint North pipeline, expected to be commissioned before winter 2024 [3] - The company is working on two additional conditioning capacity expansions, with a CapEx of approximately $300 million, to increase total capacity to 28 million cubic meters per day by 2024 [14] - The company expects to benefit from the commissioning of the Néstor Kirchner pipeline and the construction of its second tranche, providing growth opportunities in midstream services [15] Management Commentary on Operating Environment and Outlook - The company faces challenges due to inflation and foreign exchange restrictions, requiring offshore financing for imports [10][44] - Management expects the license extension to be granted in 2024, which is crucial for strategic planning and business expansion [4][11] - The company anticipates midstream services to become the largest EBITDA contributor by 2026, depending on tariff renegotiations [46] Other Important Information - CapEx for the period amounted to ARS19.8 billion, with loans of ARS11.6 billion and a working capital increase of ARS11.2 billion [9] - Financial results recorded a negative variation of ARS5.7 billion, mainly due to foreign exchange losses and inflation exposure, partially offset by financial asset income [29] Q&A Session Summary Question: What are the CapEx expectations for 2023 and 2024? - The company is taking offshore financing for imports due to restrictions on the official exchange market, with loans expected to be paid next year [10] Question: What is the status of the license extension request? - The company expects the license extension to be granted in 2024, which is critical for business expansion and strategic planning [4][11] Question: What are the reasons for the decline in propane export volumes? - The decline is attributed to seasonality, with expectations of compensation in Q4 2023 [31] Question: What are the expectations for midstream services growth in Vaca Muerta? - The company expects to increase volumes from 15 million to 28 million cubic meters per day by mid-2024, with expansions expected to be operational by May and July/August [36] Question: What are the implications of the license extension for the company? - The extension is crucial for both regulated and non-regulated businesses, with significant implications for strategic planning [33] Question: What are the plans for LNG and LPG projects? - The company is currently studying LNG projects and expects to make a decision in the second half of 2024 [35][38] Question: What are the expectations for natural gas transportation tariff revisions? - The company is in talks with ENARGAS for a transitional adjustment and expects the tariff revision process to take at least six months [40] Question: What are the FX restrictions impacting the company? - The company faces restrictions on accessing the official exchange rate for purchasing goods and services, relying on loans for imports [44] Question: When will midstream services become the largest EBITDA contributor? - Midstream services are expected to become the largest EBITDA contributor by 2026, depending on tariff renegotiations [46] Question: What are the benefits of the Techint North pipeline reversal? - The company expects annual revenues of approximately $150 million from the pipeline reversal [54]
Transportadora de Gas del Sur S.A.(TGS) - 2023 Q2 - Quarterly Report
2023-06-30 13:58
[Material Fact Disclosure](index=2&type=section&id=Material%20Fact%20Disclosure) This section details the company's material fact disclosure concerning a change in its principal office address [Change of Principal Office Address](index=2&type=section&id=Re.:%20Material%20fact.%20Change%20of%20principal%20of%20ice%20address.) On June 29, 2023, the Board of Directors of Transportadora de Gas del Sur S.A. (tgs) approved the change of the company's principal office address, with the new address being Madero Office - 355 Cecilia Grierson St., 26th floor, in the Autonomous City of Buenos Aires, effective July 17, 2023 - The Board of Directors of tgs resolved to change the principal office address in a meeting held on June 29, 2023[4](index=4&type=chunk) - The new principal office address is: Madero Office - 355 Cecilia Grierson St., 26th floor, Autonomous City of Buenos Aires, Argentina[4](index=4&type=chunk) - The change of address will be effective as of July 17, 2023[4](index=4&type=chunk)
Transportadora de Gas del Sur S.A.(TGS) - 2022 Q4 - Annual Report
2023-04-25 21:02
Revenue and Tariffs - The company generated 25% of total revenues from Natural Gas Transportation public service contracts, which are subject to government regulation[53]. - A tariff increase of 60% was received since March 1, 2022, following a period of tariff freeze under Decree 1020[58]. - The company is currently negotiating a transitional tariff increase of 95% on natural gas transportation tariffs and Access and Use Charges[61]. - The company has faced delays in tariff adjustments, which have negatively impacted its financial situation[61]. - The completion of the Regulatory Tariff Indexation (RTI) process has been extended until December 18, 2023[59]. - The company is unable to predict future government measures regarding the tariff system, which may adversely affect its financial results[62]. - The company has suffered from insufficient tariff increases to offset rising operating costs due to inflation[61]. - The Argentine government has implemented the Solidarity Law, which froze natural gas and electricity tariffs, and allowed for state intervention in ENARGAS until December 31, 2023[82]. Economic Conditions and Risks - The ongoing economic conditions in Argentina, including high inflation, have adversely affected the company's financial condition and revenues[54]. - The company faces risks from potential future operating restrictions or mandatory investments imposed by the government, which could adversely affect its financial condition[64]. - The government has prioritized domestic supply at stable prices, which has led to interruptions in gas exports during shortages[66]. - The company cannot assure that future expansion projects will not adversely affect its results of operations or financial condition[81]. - There is uncertainty regarding the success of government measures to increase natural gas production, which could adversely affect the company's midstream and liquids production businesses[96]. - The company faces competition in the natural gas processing sector, which could impact revenues and operational results[148]. - Economic volatility, high inflation, and political instability continue to pose risks to Argentina's economic outlook and the company's operations[217]. Investments and Infrastructure - The Five-Year Plan requires investments of Ps.6,786 million to improve pipeline system operations and maintenance[55]. - The company has implemented a reduction in current investment plans to adapt to economic expectations in Argentina, without compromising safety[88]. - The construction of the NK Pipeline is expected to enhance natural gas transportation capacity, but could also affect the company's operations if third-party pipelines are developed[156][158]. Liquids Business - The Liquids business has represented over 50% of total revenues between 2004 and 2017, and during fiscal years 2021 and 2022[115]. - The ongoing volatility in Liquids prices is influenced by geopolitical issues, production variations, and macroeconomic conditions, which may continue in the future[117]. - Export duties on Liquids products currently stand at 8% under the Solidarity Law, impacting profitability[119]. - Regulatory actions have impacted the company's Liquids business, with domestic fuel prices differing significantly from international market prices, affecting investment viability[97]. Operational Challenges - The company has faced delays in receiving compensation under government programs designed to stabilize LPG prices, impacting financial performance[100]. - The company is subject to numerous affirmative and restrictive covenants in its outstanding indebtedness, which may limit operational flexibility and ability to pursue business opportunities[135]. - The company faces risks related to adverse operational conditions affecting PBB's capacity to purchase ethane, which could impact financial results[134]. - The company is subject to risks from mechanical or electrical failures that may affect its ability to fulfill contractual commitments[165]. - The company faces potential operational disruptions due to climate change and increased regulation on greenhouse gas emissions[177]. Financial Stability and Debt - Argentina's public debt load stands at $323 billion, including loans from the IMF[192]. - Outstanding debt with private bondholders is approximately $121 billion[192]. - The Argentine government announced a debt restructuring offer that achieved 99% participation from bondholders[193]. - The debt restructuring resulted in an exchange premium of 130% and a loss of international reserves amounting to US$1.3 billion[196]. - The primary fiscal deficit for 2021 was reported at 3% of GDP, while the primary fiscal deficit for 2022 reached 2.4% of GDP, meeting the IMF agreement targets[207]. - The peso depreciated by 72.5% against the U.S. dollar in 2022, following significant devaluations in previous years[219]. - The inability to access international capital markets could significantly adversely affect the company's financial condition and operations[204]. COVID-19 Impact - The COVID pandemic has introduced significant uncertainty, affecting operational, commercial, and financial activities, with potential long-term impacts on market prices and demand[123]. - The company has implemented measures to ensure operational continuity during the COVID pandemic, including health protocols for essential workers[126]. - The effects of COVID-19 on public health remain uncertain, potentially impacting earnings, cash flow, and liquidity[227]. Political and Regulatory Environment - The Solidarity Law has granted the Executive Branch broad legislative powers, affecting public utility rates and tax structures[232]. - The pension adjustment system has been suspended to address the fiscal deficit, impacting the financial condition of the country[234]. - The political instability in Argentina has led to a decline in investor confidence and heightened market volatility[228]. - The upcoming presidential and legislative elections scheduled for August 13, 2023, and October 22, 2023, may lead to significant changes in government policies[230].
Transportadora de Gas del Sur S.A.(TGS) - 2021 Q4 - Annual Report
2022-04-26 21:14
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR (G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 O ...
Transportadora de Gas del Sur S.A.(TGS) - 2021 Q4 - Earnings Call Transcript
2022-03-09 17:28
Transportadora de Gas del Sur SA (NYSE:TGS) Q4 2021 Earnings Conference Call March 9, 2022 9:00 AM ET Company Participants Alejandro Basso – Chief Financial Officer Conference Call Participants Operator Everyone for attending this year's Fourth Quarter 2021 results video conference. This year's issued its earnings report yesterday. If you did not receive a copy, please do not hesitate to contact us by email. We would like to inform you that this event is being recorded and all participants will be in listen ...
Transportadora de Gas del Sur S.A.(TGS) - 2021 Q3 - Earnings Call Transcript
2021-11-09 20:14
Financial Data and Key Metrics Changes - The company reported a net income of ARS 4.4 billion in Q3 2021, a significant increase from almost ARS 600 million in Q3 2020 [9] - Total EBITDA decreased by ARS 3.1 billion, primarily due to a decline in natural gas transportation EBITDA by ARS 2.6 billion and a decrease in liquids business EBITDA by around ARS 900 million [9][10] - Financial results showed a positive variation of ARS 7 billion, which offset the total EBITDA decline, mainly due to lower foreign exchange rate losses compared to Q3 2020 [10][17] Business Line Data and Key Metrics Changes - EBITDA from the natural gas transportation business decreased by ARS 2.6 billion, attributed to the lack of tariff adjustments since 2019 [11] - Liquids business EBITDA fell from ARS 4 billion to ARS 3.1 billion, influenced by increased natural gas costs and lower sales volumes [13][14] - EBITDA from other services increased by 37%, mainly due to higher revenues from midstream services [15] Market Data and Key Metrics Changes - The average natural gas cost increased from $2.2 to $4 per million BTU, contributing to the decline in EBITDA [14] - The company experienced a decline in liquid sales volume from 66,000 metric tons to 8,000 metric tons, impacting overall revenues [14] Company Strategy and Development Direction - The company is focused on expanding its infrastructure and closing new agreements with gas producers, driven by increased natural gas production in Vaca Muerta [4] - An open season was launched to assign almost 100% of the capacity in new firm capacity contracts with an average term of 20 years [6] - The company plans to continue generating positive free cash flow despite the deterioration of operating margins [20] Management's Comments on Operating Environment and Future Outlook - Management expects international natural gas prices to remain high in the upcoming quarters, although predicting exact prices is challenging [23] - The expansion of the international transportation system is under analysis by the national government, which could positively impact operations [24][25] - Management indicated that normalized transportation margins may not be achieved until 2023 due to high inflation and ongoing tariff reviews [30] Other Important Information - The company maintained a stable cash position of around ARS 33 billion, equivalent to over $330 million, with no debt amortization until 2025 [20] - CapEx for the quarter amounted to ARS 2.2 billion, reflecting ongoing investments in infrastructure [20] Q&A Session Summary Question: Will natural gasoline prices sustain in the fourth quarter and into 2022? - Management expects international prices to remain high based on market futures, but exact predictions are difficult [23] Question: What is the potential impact of the expansion of the international transportation system? - The expansion is under analysis and is expected to positively impact the company's ability to evacuate gas [24][25] Question: Will the transitional tariff scheme allow for full margin recovery? - Management indicated that predicting the normalization of transportation margins is difficult, with potential adjustments not expected until 2023 [30] Question: What caused the increase in OpEx compared to 2020? - The increase in OpEx is attributed to the pandemic's impact on maintenance capabilities, leading to higher operational costs [31] Question: Can you discuss the shortage of gas for processing in Q3 2021? - The shortage was anticipated due to seasonal demand, and management is addressing this through planned replacements [32] Question: What is the status of the transitional adjustment process? - Management cannot predict the next adjustment but indicated it would likely be below general inflation [33]
Transportadora de Gas del Sur S.A.(TGS) - 2021 Q2 - Earnings Call Transcript
2021-08-08 12:27
Transportadora de Gas del Sur S.A. (NYSE:TGS) Q2 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Alejandro Basso - Chief Financial Officer Conference Call Participants Konstantinos Papalias - PUENTE MartÃn Arancet - Balanz Capital Operator Good morning. My name is Laura and I will be your conference operator today. At this time, I would like to welcome everyone to TGS Second Quarter 2021 Results Earnings Conference Call. TGS issued its earnings report yesterday. If you did not ...