Transportadora de Gas del Sur's transportation segment experienced a substantial profitability boost in the third quarter of 2024. This increase was primarily driven by a significant 700% tariff increase, aimed at normalizing revenues in its regulated business. However, the effectiveness of these adjustments was partially offset by lagging inflation adjustments, which continued to pose a risk to future profitability.
Conversely, the company's liquids segment faced considerable headwinds during the same period, resulting in a 50% year-over-year operating income drop. This decline was attributed to a combination of maintenance activities and unfavorable foreign exchange rates, impacting the segment's overall performance. These factors highlight the segment's vulnerability to operational and macroeconomic pressures.
In a more positive development, the midstream segment demonstrated robust growth, with revenues increasing by 17% in USD terms. This growth underscores the strategic importance of TGS's investments in Vaca Muerta, where it provides essential natural gas transportation and conditioning services. The expansion in this non-regulated segment helps to diversify the company's revenue streams.
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