Transportadora De Gas Sa Ord B Q2 Earnings Call Highlights

Transportadora De Gas Sa Ord B reported sharply higher second-quarter profit as growth in its liquids business, improved financial results and higher natural-gas transportation earnings offset inflationary and operating pressures.

The company also highlighted a final investment decision for a $3 billion natural gas liquids, or NGL, project, with commercial agreements executed for more than 90% of its total capacity.

Chief Financial Officer Alejandro Basso said the NGL project is expected to require about 45 months of construction, with commercial operations targeted for March 2030. The company has requested approval for the project under Argentina’s Regime for Incentive of Large Investments, known as RIGI.

The project includes a gathering pipeline in Vaca Muerta, a processing plant in Tratayén, a 475-kilometer polyduct, a fractionation plant in Cerri and storage facilities in Puerto Galván.

TGS reported net income of ARS 133 billion for the second quarter of 2026, up from ARS 53.8 billion in the year-earlier period, with figures stated in constant Argentine pesos as of June 30, 2026. Basso attributed the increase primarily to a ARS 60.2 billion positive change in financial results and a ARS 48.4 billion increase in liquids EBITDA. Natural-gas transportation EBITDA also increased by ARS 12.3 billion.

EBITDA for the natural gas and oil business totaled ARS 132 billion, compared with nearly ARS 120 billion a year earlier. Tariff increases lifted revenue by ARS 60.2 billion, exceeding a ARS 48.6 billion negative inflation effect, according to Basso. Comparisons were also aided by two events in the second quarter of 2025: an ARS 11.2 billion trade receivable write-off and damage to transportation assets from a March 2025 climate event. The climate-related disruption accounted for an ARS 8 billion positive EBITDA variation in the 2026 comparison, Basso said.

However, transportation-contract revenue declined by ARS 9.3 billion following a reconfiguration of Argentina’s gas transportation system that took effect in May. Basso said the shift reflects growing gas supply from Vaca Muerta replacing volumes historically sourced from Bolivia, northern Argentina and southern fields. He said future small monthly tariff adjustments are expected to partially offset the initial revenue impact.

Liquids segment EBITDA rose to ARS 82.3 billion from ARS 33.9 billion a year earlier. Sales volumes increased to 330,000 metric tons from 211,000 metric tons in the second quarter of 2025. Basso said the prior-year comparison reflected lower production and sales after flooding on March 7, 2025 caused a processing-plant shutdown. The facility resumed operations in mid-April 2025 at a reduced production level and returned to normal operations by early May. Higher volumes contributed ARS 46.7 billion of EBITDA growth, while higher international reference prices, which Basso linked to g...