Transportadora de Gas del Sur SA TGS

Good morning, everyone. I'm Carlos Almagro, Head of Investor Relations. I would like to welcome everyone to TGS 4th Quarter 2025 Earnings Video Conference. TGS issued its earnings release last Friday. If you didn't receive a copy of the release, please contact us at inversores.tgs.com.ar. Before we begin the call, I would like to inform you that this event is being recorded and all participants are in listen-only mode. Following the company's remarks, we will host a Q&A session. All questions will need to be submitted in writing through the Q&A chat box. I would also like to remind you that forward-looking statements made during today's video conference do not account for future economic circumstances, industry conditions, or company performance and final results. These statements are subject to a number of risks and uncertainties. All figures included herein were prepared in accordance with international accounting reporting standards, IFRS, and stated in constant Argentine pesos as of December 31st, 2025, unless otherwise noted. Joining us today from TGS in Buenos Aires is Alejandro Basso, Chief Financial Officer. I will now turn the video conference over to Mr. Basso. Alejandro, please begin.

Thank you, Carlos. Good morning, everyone, and thank you for joining us today to discuss TGS's 2025 four-quarter earnings and highlights. To begin today's call, I'd like to share some of the most recent corporate developments. Back in November, we successfully issued a new 500 million bond with a 10-year tenure at an 8% yield. Demand was very strong and the transaction was oversubscribed, with the total order group reaching $1.3 billion. Proceeds from these issues are being used to fund approximately $780 million of capital expenditures related to the expansion of the Perito-Moleno pipeline, which will add 14 million cubic meters per day of transportation capacity, as well as the final tranches expansion of our regulated pipeline, adding 12 million cubic meters per day. In addition, we also executed bank loan agreements totaling $67 million to finance imports related to this project. Finally, turning to the commercial side, on February the 9th, we launched the open seasons during which incremental capacity can be contracted on a firm basis. On March 16th, we will receive the bids for the capacity, which will be repaid. Vets for the remaining capacity will be received once Enarsa completes the reallocation of the existing 21 million kumits per day, which are currently assigned to Kamesa. Moving to slide 4, I will briefly highlight the key financial results following the provisions established by the IFRS for financial reporting in hyperinflationary economies. As seen in the slide, we reported a total net income of 124 billion during the fourth quarter of 2025, compared to 170.5 billion reported in the same quarter of 2024. Overall, earnings were lower mainly due to a few factors. equipment impairment provision amounting to 52.1 billion, which was recorded in the fourth quarter of 24. In addition, our financial results were impacted by a negative variation of 17.9 billion and the liquids EBITDA declined by 18.1 billion. That said, these effects were partially offset by the solid performance of our mainstream business. which delivered higher EBITDA totaling 16.2 billion during the period and a slight increase of natural gas transportation EBITDA by 2.7 billion Moving on to slide 5 EBITDA for natural gas transportation business in the fourth quarter of 2025 totaled 109.8 billion which is slightly higher than the almost 107.1 billion recorded in the fourth quarter of 2024 It is worth noting that even when we recorded an increase in revenue to the tariff adjustment of 31.9 billion, the adjustments were not enough to offset the inflation loss effect of 40.9 billion. However, the higher transportation services mainly interrupted the transportation of 9.6 billion and lower operating expenses of 540 million contributed to generate a slight increase of the EBITDA. On slide 6, you can see how EBITDA for the liquids segment decreased to 83.9 billion during the fourth quarter of 2025, compared to 102 billion reported in the same quarter of 2024. The decrease in EBITDA was mainly attributed to lower export-export prices, which fell between 17% and 33%, and reduced EBITDA in 31.1 billion. In addition, higher operating cost and insurance reimbursable expenses incurred following the climate event occurred in March 25, reduced EBITDA by 12.9 billion and 4.9 billion, respectively. These negative effects on EBITDA were partially offset by a few positive factors. First, we recorded a positive monetary effect of 13.7 billion as the exchange rate increased above the inflation rate, 43.5% versus 31.5%. Second, butane prices in the domestic market improved following the deregulation under the Programme Award starting January 25. This allowed us to sell at export-parity prices, generating an additional 9.9 billion in revenues. And finally, higher sales volumes also contributed with a 4.4% increase year over year, from 338,000 metric tons in the fourth quarter of 24 to 353,000 metric tons in the same period of 25, resulting in a 7 billion of incremental EBITDA. In the words noting that the average natural gas price, which is the main variable cost for the liquid business segment, remain stable, at $1.6 per million of BTU year over year. Turning to slide 7, EBITDA from Mistrim and other services rose by 36% to $60.7 billion compared to $44.5 billion in the fourth quarter of 24. This increase was mainly driven by higher sales derived from the incremental build volume of natural gas transported and conditioned in Vaca Muerta, totaling almost 20.3 billion. Transported natural gas build volume rose from an average of 28 million cubic meters per day in the fourth quarter The natural gas condition volume also increased from an average of 19 to 27 million of qubits per day. In addition, the monetary effect increased a bit by 5 billion. These effects were partially offset by 8.1 billion in higher operating expenses. As seen on slide 8, we recorded a negative variation in the financial results amounting to $17.9 billion. This was mainly due to a $12.3 billion higher interest cost, mostly explained by higher internets, which increased principally by the issuance of the $500 million bond in last November. In addition, we had an 8.1 billion decrease in income from financial assets, given the lower yields achieved in the domestic financial investment and inflation exposure loss increased by 2.1 billion. These negative effects were partially observed by the Paris import tax charge of 5.9 billion recorded in the fourth quarter of 24. Following the elimination of this tax at the end of 24, no charge was incurred in the fourth quarter of 25. In the last quarter of 24, the tax applied rate was 7.5% for imports of goods and 25% for the imports of services. Finally, turning to the cash flow on slide 9, our cash position in real terms increased by $864 billion during the fourth quarter of 2025 to $1,808 billion equivalent to approximately $1.25 billion at the official exchange rate. This steep increase in our cash position stems from the $500 million bond issued in last November. EBITDA generation in the fourth quarter reached nearly 259 billion, with 57% generated by the non-regulated business, even after considering the full normalization of the natural gas transportation segment. This performance highlights the increased relevance of non-regulated activities within the company's overall results. CAPEX reached almost 96 billion for the period, and work capital rose by 76 billion. We also paid 5.7 billion in interest and 61.6 billion in income taxes, while obtaining 150.3 billion in short-term loans. Lastly, real returns from financial investments declined by 11.8 billion, mainly due to the exchange rate rising less than inflation during the fourth This concludes our presentation. I will now turn it over to Carlos, who will open the floor for questions.

Thank you.