Transportadora de Gas del Sur S.A. Q3 FY2025 earnings call

• In June 2024, a private initiative was submitted to expand Perito Moreno pipeline capacity. TGS won the project on October 17 with $560 million CapEx, involving 3 compressor plants and Tratayén expansion. - Another $220 million investment for regulated pipelines expansion. - Total net income in Q3 2025 was ARS 112 billion vs ARS 68.8 billion in Q3 2024, driven by liquids and midstream EBITDA growth and lower negative financial results. - Cash position increased by 22% to ARS 875 billion in Q3 2025, EBITDA generation, CapEx of ARS 87 billion, working capital decrease, etc.

In the third quarter of 2025, the natural gas transportation business had an EBITDA of ARS 102.4 billion, slightly below the ARS 113 billion in the same quarter of 2024. The liquids segment saw EBITDA triple to ARS 55.2 billion from ARS 18.2 billion in Q3 2024, driven by higher volumes, butane price deregulation, but offset by extraordinary expenses and natural gas price impact. Midstream and other services EBITDA rose to ARS 61.2 billion from ARS 46.7 billion in Q3 2024, driven by higher sales and monetary effects but offset by higher operating expenses. Revenue contributions: EBITDA generation during Q3 amounted to almost ARS 219 billion, with 47% from regulated transportation and 53% from nonregulated businesses.

• Deployment of $780 million CapEx with $150 million expected to be spent this year, mostly in the last quarter. - FID for Tratayén facility expected in Q1 next year. - Working on partners for the liquids project part involving transportation, fractioning, and dispatching facilities.

• Risks related to inflation affecting financial results. - Foreign exchange fluctuations leading to higher loss. - Regulatory changes impacting projects. - Uncertainty in insurance recovery timelines for flood-related expenses.

Q: Regarding the CapEx to be made in the expansion of the transportation system and final tranches, how is the breakdown of the deployment of the new $780 million?

A: For this year, some advances to suppliers and part of the works amount to $150 million. In 2026, $450 million is expected to be spent, and $27 million in the first 5 months of 2027. Financing includes almost $70 million bank loans for imports.

Q: Regarding the insurance claim status for the event, what is the total expected recovery amount from the insurance and the time line for collecting the payment?

A: Estimated recovery amount is more than $50 million. Expect $10 million this year and the remainder in the following year, maybe in the second quarter.

Q: Regarding the strong recovery of the liquids in this quarter, whether the current levels of production and margins are sustainable into fourth quarter of this year and how we see prices in 2026?

A: Gas production is lower in fourth quarter, but richness could remain. Liquids prices in 2026 may be lower than 2025 average but hard to anticipate.

Q: Regarding CapEx, if we expect an acceleration in cash CapEx deployment until year-end?

A: Cash CapEx is going to be higher than previous levels, with $150 million expected to be spent this year, mostly in the last quarter.

Q: Regarding the Perito Moreno pipeline and interest in participating in the project to build a brand new gas pipeline to provide gas to LNG facilities?

A: Currently evaluating participation in the new gas pipeline project, no news to anticipate by now.

Q: Regarding income tax payments against next quarter?

A: Payments could be quite similar in the fourth quarter as compared with the third one, with bulk of payment paid in May and advances similar from June to March next year.

Q: When do we expect to reach FID for the Tratayén facility?

A: FID could be in the first quarter of next year, hopefully.

Q: Regarding financing of projects and partnership in liquids project?

A: Working on partners for the liquids project part, not analyzing equity markets at this moment.