Transportadora de Gas del Sur reported a significant drop in net income for the second quarter of 2025, primarily impacted by a climatic event at the General Cerri Complex. This incident, which occurred on March 7, 2025, caused flooding and temporarily halted liquids production, leading to substantial expenses and impairment charges. The disruption affected the company's overall profitability for the period.
Despite the setback, operations at the Cerri Complex normalized in May, allowing the liquids segment to resume production. Concurrently, the midstream segment in Vaca Muerta continued its expansion, demonstrating double-digit growth driven by increasing demand for natural gas transportation and conditioning services. These dollar-denominated contracts provide a stable revenue stream.
The company also benefited from ongoing monthly inflation-linked tariff updates, which contribute to the predictability of its regulated gas transportation business. Furthermore, TGS secured a crucial 20-year extension of its transportation license, effective December 28, 2027, providing long-term regulatory certainty and stability for its core operations. These strategic elements underpin future recovery and growth.
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