Transportadora de Gas del Sur S.A. ("tgs", "the Company", “us”, “our”, or “we”) is the natural gas transportation leader in Argentina, transporting approximately 60% of the gas consumed in the country, through more than 5,700 miles of gas pipelines, with a firm-contracted capacity of 96.7 MMm3/d. We are also one of the main natural gas processors. In addition, our infrastructure investment in the Vaca Muerta formation places us as one of Argentina’s leading Midstream companies.
Our shares are traded on NYSE (New York Stock Exchange) and BYMA (Bolsas y Mercados Argentinos S.A.).
Our controlling company is Compañía de Inversiones de Energía S.A. ("CIESA"), which owns 53.83% of the total shares. CIESA’s shareholders are: (i) Pampa Energía S.A. with a 50% interest, (ii) Grupo Inversor Petroquímica S.L. (GIP), led by the Sielecki family, and PCT L.L.C., with the remaining 50%.
For further information, see our website:
https://www.tgs.com.ar/en/investors/
STOCK INFORMATION
BYMA Symbol: TGSU2
NYSE Symbol: TGS (1 ADS = 5 ordinary shares)
SHAREHOLDING STRUCTURE AS OF SEPTEMBER 30, 2026
tgs holds 752,761,058 outstanding shares.
(1) The financial information included in this earnings release is based, unless otherwise stated, on the Condensed Consolidated Interim Financial Statements and is presented in millions of constant Argentine pesos as of September 30, 2026 (Ps.), prepared in accordance with International Financial Reporting Standards (“IFRS”).
Buenos Aires, Argentina, October 29, 2026
tgs reported net income of Ps. 110,505 million in 3Q2026, equivalent to Ps. 146.80 per share (Ps. 734.00 per ADS), compared with net income of Ps. 149,547 million, or Ps. 198.66 per share (Ps. 993.32 per ADS), recorded for the three-month period ended September 30, 2025 ("3Q2025").
Operating profit for 3Q2026 amounted to Ps. 204,304 million, representing a decrease of Ps. 25,272 million compared with 3Q2025. This change was mainly explained by lower revenues of Ps. 36,739 million and a Ps. 6,004 million increase in selling and administrative expenses.
These effects were partially offset by:
·lower cost of sales of Ps. 9,309 million; and
·an improvement of Ps. 8,164 million in other operating results, net, mainly explained by the impact of the climatic event in 3Q2025.
In addition, net financial results declined by Ps. 18,001 million compared with 3Q2025.
3Q2026 Highlights and beyond
·NGLs Project: during the quarter and beyond, the Project continued to advance as planned. On October 19, 2026, the approval to be included in the Large Investment Incentive Regime ("RIGI", for its Spanish acronym) was publicly announced. The application was submitted in June 2026. As of the date of this press release, the publication of the corresponding administrative resolution remains pending. In addition, during the quarter we signed new agreements with natural gas producers, increasing firm contracted capacity to 96% of the Project’s planned capacity.
·Perito Moreno Gas Pipeline ("GPM") Expansion: on October 8, we submitted a request to the Secretariat of Energy to expand the GPM capacity by 4.5 MMm3/d, in accordance with the authorization granted by ENARSA for up to 6 MMm3/d. The approval is still pending.
Analysis of the results
In 3Q2026, tgs reported revenues of Ps. 532,466 million, compared with Ps. 569,205 million in 3Q2025, representing a decrease of Ps. 36,739 million.
The breakdown of cost of sales, administrative and selling expenses for 3Q2026 and 3Q2025 is shown in the table below:
Cost of sales and administrative and selling expenses decreased by Ps. 3,303 million, mainly as a result of a Ps. 17,290 million decrease in the cost of natural gas purchased for liquids production, primarily due to the lower price measured in constant currency in accordance with IAS 29, and a Ps. 2,826 million decrease in other third-party fees and services. These effects were partially offset by increases in: (i) labor costs of Ps. 4,535 million, (ii) taxes and contributions of Ps. 3,901 million, and (iii) repair and maintenance expenses of Ps. 2,568 million.
Financial results are presented on nominal terms, including gain/loss on net monetary position in a single line item. In 3Q2026, financial results recorded a negative variation of Ps. 18,001 million compared with 3Q2025, from a loss of Ps. 6,493 million to a loss of Ps. 24,494 million. This negative change was mainly explained by Ps. 17,764 million lower returns on financial assets, Ps. 11,601 million higher interests on liabilities, and a Ps. 4,427 million greater loss on net monetary position. These effects were partially offset by a Ps. 15,767 million lower foreign exchange loss.
Other operating results, net, recorded a loss of Ps. 3,674 million in 3Q2026, compared with a loss of Ps. 11,837 million in 3Q2025, representing an improvement of Ps. 8,163 million. This positive change was mainly explained by the impact of the climatic event at the Cerri Complex in March 2025.
Natural Gas Transportation
Operating profit of the Natural Gas Transportation segment for 3Q2026 amounted to Ps. 79,159 million in 3Q2026, Ps. 24,288 million below 3Q2025.
Natural gas transportation revenues accounted for approximately 37% of total revenues in both 3Q2026 and 3Q2025.
Revenues from this segment are derived mainly from firm natural gas transportation contracts, which represented approximately 84% and 82% of the total revenues for this segment in 3Q2026 and 3Q2025, respectively.
Revenues decreased Ps. 14,444 million, mainly as a result of the negative impact of the restatement to constant currency in accordance with IAS 29, amounting to Ps. 51,557 million and lower revenues from natural gas transportation services of Ps. 20,864 million, mainly associated with the reconfiguration of the transportation system effective since May 2026. These effects were partially offset by the tariff increases amounting to Ps. 58,393 million.
Cost of sales and selling and administrative expenses increased by Ps. 11,775 million, mainly due to Ps. 6,037 million higher repair and maintenance expenses, Ps. 2,334 million higher labor costs, and Ps. 1,747 million higher third-party fees and services.
Liquids Production and Commercialization
Liquids Production and Commercialization revenues accounted for approximately 42% of total revenues in both 3Q2026 and 3Q2025. Production in 3Q2026 was 20,934 tons lower than in 3Q2025, reaching 293,929 tons.
During 3Q2026, operating profit for this business segment amounted to Ps. 78,915 million, representing an increase of Ps. 13,913 million compared to the same period of 2025 (Ps. 65,002 million). This increase was mainly explained by the decrease in the cost of natural gas (Ps. 17,290 million) and the Ps. 6,318 million lower charge recorded in other operating results, net. These effects were partially offset by Ps. 10,852 million lower revenues.
Revenues totaled Ps. 225,569 million in 3Q2026, compared to Ps. 236,421 million in the same period of 2025. This decrease was mainly explained by the Ps. 59,242 million loss arising from accounting restatement under IAS 29, lower volumes of LPG and natural gasoline sold (Ps. 15,257 million), and the lower ethane price (including the take-or-pay amount collected in 2025) of Ps. 2,893 million. These effects were partially offset by higher international reference prices of Ps. 42,955 million, the nominal exchange rate effect (Ps. 19,357 million), and higher ethane volumes (Ps. 4,295 million).
Volumes sold decreased by 9,668 tons (or 3%) compared with 3Q2025.
The breakdown of volumes dispatched by market and product and revenues by market are included below:
Midstream and Telecommunications
Midstream and Telecommunications business segment includes mainly services provided by tgs at Vaca Muerta, representing approximately 21% of our total revenues in both 3Q2026 and 3Q2025.
Operating profit decreased by Ps. 14,897 million, mainly as a result of Ps. 11,444 million lower revenues and Ps. 2,610 million higher cost of sales and selling and administrative expenses (primarily due to higher taxes, rates and contributions, and depreciation).
Revenues amounted to Ps. 110,426 million in 3Q2026, compared with Ps. 121,870 million in the same period of 2025. During the 3Q2026, Ps. 13,776 million higher revenues from natural gas transportation and conditioning services in Vaca Muerta and the Ps. 9,007 million nominal exchange rate effect on revenues denominated in U.S. dollars partially offset the Ps. 29,856 million negative effect arising from restatement in constant currency in accordance with IAS 29, as well as lower revenues from compression services and other services related to the operation and maintenance of the GPM.
Financial position analysis
Net debt
As of September 30, 2026, the Company reported a net cash position of Ps. 310,054 million, compared with Ps. 126,900 million as of December 31, 2025. At period-end, cash and cash equivalents amounted to Ps. 392,945 million, while financial assets at fair value through profit or loss and amortized cost totaled Ps. 1,936,070 million.
The table included below presents a reconciliation of the Company’s net financial debt as of the dates indicated.
During 3Q2026, the Company incurred new financial debt of Ps. 333,968 million (US$ 221.4 million).
The chart below includes the maturity profile of our financial debt (bank loans and notes) in millions of U.S. dollars:
Liquidity and capital resources
The following table includes summarized cash flow statement information for 3Q2026 and 3Q2025:
As of September 30, 2026, and December 31, 2025, the funds allocation was as follows:
The table below shows a reconciliation of the free cash flows for the 3Q2026 and 3Q2025 periods:
3Q2026 vs. 3Q2025
During 3Q2026, cash flow provided by operating activities amounted to Ps. 296,567 million, compared to Ps. 201,025 million in the same period of 2025. The Ps. 95,542 million increase was mainly attributable to Ps. 89,313 million decrease in working capital, as well as lower income tax payments. These effects were partially offset by a Ps. 39,042 million decrease in net income.
Cash flow used in investing activities amounted to Ps. 471,077 million in 3Q2026, compared to Ps. 159,327 million used in during 3Q2025. The Ps. 311,750 million increase was mainly due to higher investments in property, plant and equipment, partially offset by a variation in the net proceeds from investments not considered cash equivalents.
During 3Q2026, cash flow provided by financing activities amounted to Ps. 268,214 million, compared to cash flow provided by financing activities of Ps. 38,415 million in 3Q2025. The Ps. 229,799 million positive change was mainly explained by increased borrowings, partially offset by debt repayments made during the quarter.
3Q2026 earnings videoconference
We invite you to participate in the videoconference to discuss this 3Q2026 announcement on Friday October 30, 2026, at 10:00 a.m. Eastern Time / 11:00 a.m. Buenos Aires time.
For those interested in participating in our earnings videoconference, there will be a live webcast that you can access at: https://us02web.zoom.us/webinar/register/WN_VQ4LehUkS9OupZRTVFZhMg#/registration
The following section includes financial information.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this press release, including, without limitation, those regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we operate or are seeking to operate or anticipated regulatory changes in the markets in which we operate or intend to operate. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "guidance," "may,", "should" or "will" or the negative of such terms or other similar expressions or terminology.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements speak only as of the date of this press release and are not guarantees of future performance and are based on numerous assumptions. Our actual results of operations, financial condition and the development of events may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements. Except as required by law, we do not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof or to reflect anticipated or unanticipated events or circumstances.
Investors should read the section entitled " Item 3. Key Information—D. Risk Factors " and the description of our segments and business sectors in the section entitled "Item 4.B. Information on the Company—Business Overview", each in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”), for a more complete discussion of the risks and factors that could affect us.
Forward-looking statements include, but are not limited to, statements relating to: operating profits, new investments and projects, including their expected development, completion, commercial operations date, expected financial and operating performance (including enterprise value to EBITDA multiples), expected output capacity, anticipated synergies and market dynamics relating to such investments and projects; the Inflation Reduction Act in the U.S (“IRA”) and benefits thereunder; our anticipated limited exposure to current market risks, including our position with respect current market risks and the potential impact from foreign exchange rates and interest rates on CAFD; the impact from potential caps on market prices in the net value of our assets; taxes on energy companies in Spain; equity investments; estimates and targets; escalation factors in relation to inflation; net corporate leverage based on CAFD estimates; financial flexibility; the use of non-IFRS measures as a useful predicting tool for investors; and various other factors, including those factors discussed under “Item 3. Key Information—D. Risk Factors” and “Item 5.A—Operating Results” in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC.
Non-IFRS Financial Measures
This press release also includes certain non-IFRS financial measures. Non-IFRS financial measures are not measurements of our performance or liquidity under IFRS as issued by IASB and should not be considered alternatives to operating profit or profit for the period or net cash provided by operating activities or any other performance measures derived in accordance with IFRS as issued by the IASB or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities.
We present non-IFRS financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. The non-IFRS financial measures may not be comparable to other similarly titled measures employed by other companies and may have limitations as analytical tools. These measures may not be fit for isolated consideration or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB. Non-IFRS financial measures and ratios are not measurements of our performance or liquidity under IFRS as issued by the IASB. Thus, they should not be considered as alternatives to operating profit, profit for the period, any other performance measures derived in accordance with IFRS as issued by the IASB, any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities.
Rounding: Certain figures included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not, in all cases, been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in our Financial Statements. Certain numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them due to rounding.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Transportadora de Gas del Sur S.A.
By:
| /s/Alejandro M. Basso
|
Name:
| Alejandro M. Basso
|
Title:
| Chief Financial Officer and Services Vice President
|
By:
| /s/Hernán D. Flores Gómez
|
Name:
| Hernán Diego Flores Gómez
|
Title:
| Legal Affairs Vice President
|
Date: October 29, 2026.
