Transportadora de Gas del Sur S.A.(US:TGS)2025-08-13 15:54Revenue Performance - Total revenues for the six-month period ended June 30, 2025, increased by Ps. 4,735 million, or 0.7%, compared to the same period in 2024, primarily driven by the Natural Gas Transportation segment[14]. - Revenues from the Natural Gas Transportation segment reached Ps. 312,439 million in 6M2025, a significant increase of Ps. 113,877 million, or 57.4%, compared to Ps. 198,562 million in 6M2024[19]. - Liquids Production and Commercialization revenues decreased by Ps. 119,520 million, or 33.4%, totaling Ps. 238,415 million in 6M2025, attributed to lower dispatched tons and unfavorable international prices[24]. - Total revenues for 2Q2025 decreased by Ps. 21,650 million, or 5.9%, compared to 2Q2024, with notable declines in Natural Gas transportation and Liquids production segments[37]. - The Midstream business segment reported a revenue increase of Ps. 16,548 million, or 27.7%, driven by greater natural gas transportation services[41]. - Revenues for the three-month period ended June 30, 2025, were 347,614,742 thousand pesos, a decrease of 5.5% compared to 369,264,383 thousand pesos in 2024[59]. - For the six-month period ended June 30, 2025, total revenues reached Ps. 690,208,276, a slight increase from Ps. 685,472,810 in the same period of 2024[113]. Cost and Expenses - The net cost of sales decreased by Ps. 14,273 million, or 4.4%, to Ps. 310,073 million in 6M2025, reflecting lower natural gas processing costs[14]. - Administrative and selling expenses increased by Ps. 2,973 million, or 4.1%, totaling Ps. 75,222 million in 6M2025[14]. - The cost of sales for the six-month period was Ps. 310,072,920, compared to Ps. 324,345,500 in the previous year, showing a reduction of 4.4%[113]. - The company reported a total of ARS 430,096,405 in expenses for the six-month period ended June 30, 2025, compared to ARS 388,242,516 in 2024, reflecting an increase of 10.8%[126]. Profitability - The company’s operating profit decreased by Ps. 62,626 million, or 4.4%, to Ps. 272,487 million in 6M2025[14]. - Gross profit for the six-month period ended June 30, 2025, increased to 380,135,356 thousand pesos, up 5.3% from 361,127,315 thousand pesos in 2024[59]. - Operating profit for the three-month period ended June 30, 2025, was 122,574,640 thousand pesos, down 30.7% from 176,935,140 thousand pesos in 2024[59]. - Total comprehensive income for the six-month period ended June 30, 2025, was Ps. 154,342,721 million, down from Ps. 212,408,043 million in 2024[47]. - Basic and diluted earnings per share for the three-month period ended June 30, 2025, were 53.51 pesos, down 66.4% from 159.07 pesos in 2024[59]. Cash Flow and Liquidity - Cash flows from operating activities increased by Ps. 29,740 million to Ps. 246,970 million in 6M2025, attributed to lower working capital despite higher income tax payments[34]. - Cash flows used in investing activities decreased by Ps. 47,262 million to Ps. (86,240) million in 6M2025, due to reduced payments for the acquisition of property, plant, and equipment[35]. - Cash flows used in financing activities surged to Ps. (203,599) million in 6M2025 from Ps. (27,700) million in 2024, largely due to a dividend payment of Ps. 202,704 million[36]. - The company’s cash and cash equivalents at the end of the period decreased to ARS 16,625,986 in 2025 from ARS 69,184,847 in 2024, a decline of approximately 69.1%[64]. - Liquidity ratio improved to 3.35 in 2025, compared to 2.73 in 2024, indicating stronger short-term financial health[50]. Financial Position - Total assets as of June 30, 2025, were 3,709,942,550 thousand pesos, a decrease from 3,915,963,570 thousand pesos as of December 31, 2024[60]. - Total liabilities as of June 30, 2025, were ARS 132,685,932, compared to ARS 137,382,454 as of December 31, 2024, showing a decrease of 3.4%[120]. - The company’s total current assets as of June 30, 2025, amounted to 875,502,564 thousand pesos, compared to 1,112,539,449 thousand pesos as of December 31, 2024[153]. - The company’s non-current loans were valued at 580,517,342 thousand pesos as of June 30, 2025, reflecting a stable financial position[153]. Market and Investment - The share market value of TGS in Buenos Aires Stock Exchange was ARS 6,260.00 at the end of June 2025, compared to ARS 5,164.75 in June 2024, reflecting a year-over-year increase of 21.2%[51]. - The company aims to optimize the production mix in the Liquids Production and Commercialization Segment to prioritize higher-margin products[54]. - TGS plans to continue developing business opportunities in the Vaca Muerta area to enhance Argentina's energy development[53]. - A five-year investment plan totaling Ps. 279,107,575 was established, subject to control by ENARGAS[162]. Climate Impact and Risk Management - Other operating results, net, recorded a loss of Ps. 32,426 million in 6M2025, compared to a loss of Ps. 3,764 million in 6M2024, primarily due to impairment provisions related to the climatic event[31]. - The total impairment for climate events was recorded at Ps. 7,577,663[136]. - The company has implemented measures to mitigate impacts from financial risks, with no significant changes in risk management policies since the last annual closing[101]. - The natural gas transportation service was gradually restored after a climate event, currently operating at full capacity without significant revenue impact[191]. - Liquids production at the Cerri Complex was completely halted from March 7, 2025, until early May 2025 due to flooding[191]. Taxation - Income tax expense decreased by Ps. 49,643 million, or 39.3%, to Ps. 76,520 million in 6M2025[14]. - The company reported a current income tax charge of (27,785,746) thousand pesos, compared to (79,364,522) thousand pesos in the same period of 2024, indicating a significant reduction[148]. - The total deferred income tax for the six-month period ended June 30, 2025, was (76,520,004) thousand pesos, down from (126,163,015) thousand pesos in 2024[148].