TGS Earnings Call: Growth Amid Challenges

Transportadora De Gas Sa Ord ((TGS)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Transportadora De Gas Sa Ord (TGS) painted a picture of both triumphs and trials. The company celebrated notable achievements, such as securing a significant pipeline expansion project and witnessing substantial financial growth across various business segments. However, these successes were tempered by challenges in the natural gas transportation segment and the adverse effects of inflation on financial outcomes.

Awarded Perito Moreno Pipeline Expansion Project

TGS announced its success in securing the Perito Moreno pipeline expansion project, which will increase capacity by 14 million cubic meters per day. This ambitious project, with an expected capital expenditure of $560 million, includes the construction of three new compressor plants and the expansion of the Tratayén compressor plant. This development marks a significant milestone for TGS, reinforcing its position in the energy sector.

Significant Increase in Net Income

The company reported a remarkable rise in net income, reaching ARS 112 billion in Q3 2025, up from ARS 68.8 billion in the same quarter of the previous year. This growth was primarily driven by the strong performance in the liquids business and the midstream segment, highlighting TGS’s strategic focus on these areas.

Tripling of EBITDA in Liquids Segment

TGS’s liquids segment saw a substantial increase in EBITDA, which tripled to ARS 55.2 billion in Q3 2025 from ARS 18.2 billion in Q3 2024. This impressive growth was attributed to higher export volumes and the deregulation of butane prices, showcasing the segment’s robust performance.

Strong Midstream and Other Services Growth

The midstream and other services segment also experienced significant growth, with EBITDA rising to ARS 61.2 billion in Q3 2025 from ARS 46.7 billion in Q3 2024. This increase was driven by higher sales from the increased transportation and conditioning of natural gas in the Vaca Muerta region.

Cash Position Increase

TGS reported a 22% increase in its cash position during Q3 2025, reaching ARS 875 billion. This improvement underscores the company’s strong financial management and ability to generate cash flow, which is crucial for funding future projects and expansions.

EBITDA Decline in Natural Gas Transportation

Despite the overall positive performance, the natural gas transportation business faced a decline in EBITDA by ARS 10.5 billion. This downturn was due to insufficient tariff adjustments against inflation and increased operating expenses, highlighting the challenges in this segment.

Negative Impact of Inflation on Financial Results

Inflation posed a significant challenge for TGS, impacting its financial results despite a positive variation of ARS 31.1 billion. The company faced a higher foreign exchange loss of ARS 21.8 billion due to currency depreciation, which affected its overall financial performance.

Extraordinary Expenses Due to Flood

TGS incurred extraordinary expenses amounting to ARS 8.9 billion due to a flood on March 7. The company expects to recover these costs through insurance, but the incident underscores the operational risks faced by the company.

Forward-Looking Guidance

Looking ahead, TGS is focused on expanding its pipeline capacity and enhancing its financial metrics. The company plans to invest an additional $220 million to expand capacity by 12 million cubic meters per day on its regulated pipelines. TGS is also evaluating participation in a new gas pipeline project and aims to reach a final investment decision for the Tratayén facility by early next year. These initiatives reflect TGS’s commitment to growth and strategic development.

In conclusion, the earnings call of Transportadora De Gas Sa Ord highlighted a mix of achievements and challenges. While the company celebrated significant financial growth and strategic project awards, it also faced hurdles in the natural gas transportation segment and inflationary pressures. Moving forward, TGS remains focused on expanding its capacity and exploring new opportunities to drive future growth.