Buenos Aires, Argentina, March 7, 2019
During the full year period ended December 31, 2018 (FY2018), total income amounted to Ps. 11,415.8 million, or 14.480 per share (Ps. 72.398 per ADS), compared to Ps. 5,751.2 million, or Ps. 7.239 per share (Ps. 36.194 per ADS) for the same period in 2017 (FY 2017).
During FY2018, the Company invested Ps. 8,123.7 million in capital expenditures, mainly associated with the five-year investment plan included in the Integral Tariff Review ("RTI") process, as well as the Vaca Muerta midstream project.
It should be noted that the comprehensive income for Fiscal Year 2018 includes the positive effect of Ps. 3,653.8 million recognized in the income tax line item as TGS exercised the tax revaluation option described in Law No. 27,430
Operating profit for the FY2018 amounted to Ps. 14.257,1 million, Ps. 8,052.3 million above the operating profit recorded in FY2017. This variation was mainly due to:
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Higher net revenues of Ps. 14,109.4 million. This increase was mainly related to higher net revenues at the Natural Gas Transportation and Natural Gas Liquids ("Liquids") Production and Commercialization segments, which grew by Ps. 8,006.0 million and Ps. 5,453.4 million, respectively.
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Operating costs increased by Ps. 4,252.6 million, or 35.6% year-over-year (“YoY”).
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Administrative and selling expenses rose by Ps. 1,185.3 million YoY.
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Accumulated other operating results rose by Ps. 619.2 million.
The financial results had a negative variation of Ps. 2,318.0 million mainly related to a higher depreciation of the Argentine peso against the US dollar in 2018.
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The financial information presented in this press release is based on audited consolidated financial statements presented in constant Argentine pesos as of December 31, 2018 (Ps.) which is based on the application of the International Financial Reporting Standards (IFRS).
Transportadora de Gas del Sur S.A. 2
3672 Don Bosco St. (1206), Autonomous City of Buenos Aires, Argentina.
www.tgs.com.ar/Investors
Quarterly Highlights
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Today the Board of Directors submitted a cash dividend payment of Ps. 6,500 million for its approval at the next General Annual Shareholder’s Meeting to be held on April 11, 2019.
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Execution of an ambitious five-year investment plan starting April 2017 - March 2022 within the framework of the RTI process, involving a Ps. 2,835 million, over a total capital expenditures of Ps. 8,123.7 million for FY 2018.
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In 2018, 1,171,807 short tons were produced at the Cerri Complex, recording the highest production of the last 10 years.
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On November 23, 2018, TGS was granted an extension for the natural gas transportation concession (initially granted in April 2018) for the construction and operation of an additional section of the natural gas gathering pipeline currently under construction at the Vaca Muerta non-conventional natural gas formation. This natural gas pipeline will transport up to 550 Mcf/d in this stretch and will have an extension of 15.5 miles, requiring an estimated investment of approximately US$ 40 million. The total amount of the project is calculated in US$ 250 million.
