Transportadora de Gas del Sur SA TGS

Hello, good morning everyone. I'm Carlos Almodovar, Head of Investor Relations. I would like to welcome everyone to PCS Transporter 2026. I'm in the conference. PCS issue is already released yesterday. You will be able to receive a copy of the lead. Please contact us at inversores.pcs.com. 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 remarks, we will host a Q&A session. All questions will need to be submitted in writing to 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 These statements are subject to a number of risks and uncertainties. All figures, including herein, were prepared in accordance with international banking standard, IFRS, and are stating in constant Argentan pesos as of March 31st, 2006, unless otherwise noted. Joining us today from the city of Buenos Aires is Alejandro Basso, Chief Financial Officer. I will now turn the videoconference over to Mr. Basso. Alejandro, please begin.

Thank you Carlos, good morning everyone, and thank you for joining us today to discuss TGS's 26 first quarter earnings and highlights. To begin today's call, I'd like to share some of the most recent corporate developments. In terms of the natural gas transportation expansion, which is currently under construction, and following the open season launch last February, We have received bids for incremental firm transportation capacity to be fully repaid for a total capacity of more than 30 million of kWh per day. Of the total, almost 5 million kWh per day were awarded, and we will collect prepayments amounting to $400 million prior to the commissioning of the expansion, which is scheduled for May 27th. Bits for the 9 million cubic meters per day remaining capacity, which will be paid on a monthly basis, will be received and allocated next month. It is relevant to mention that the energy security, through resolution number 66 of the year 26, has established the reconfiguration of Argentina's natural gas transportation system, with the purpose to adapt the contracted capacity system to the current natural gas production, which is mostly concentrated in the Vaca Muerta formation. This reconfiguration will imply that TCS will lose some transportation capacity contracted from the southmost of the country, which will be offset by additional new transportation capacity contracted from Vaca Muerta. As a result, this reconfiguration, that has been effective since this month, will have a neutral impact on our revenues. Moving to slide 4, I will briefly highlight the key financial results for the first quarter of 26. Please, keep in mind that all figures presented for this quarter and comparisons made with the previous quarter are expressed in constant Argentine pesos as of March 31st, 26, following the provisions established by the AFER-RS for financial reporting in hyperinflationary economies. As seen in the slide, we reported a total net income of $160 billion during the first quarter of 26 compared to $142.3 billion reported in the sixth quarter of 25. Overall, EBITDAs across all our business segments increased for a total of around $66 billion which was partially offset by a 9.2 billion lower financial results. Moving on to slide 5, EBITDA for natural gas transportation business in the first quarter of 26 totaled 139.9 billion, which is higher than the almost 129 billion recorded in the first quarter of 25. It is worth noting that even with the revenues increasing by $36.7 billion following the monthly tariff adjustment, they were not enough to offset the inflation loss effect of $48.5 billion. However, more transportation services mainly interrupted with transportation amounting to $3.2 billion together with the $10 billion extraordinary negative result resistor in the first quarter of 25 related to the climate event and 10 billion less in property plan and equipment maintenance expenses contributed to generate an increase in EBITDA in the first quarter. On slide 6 you can see how EBITDA for the liquids segment increased to 96.7 billion during the first quarter of 26 compared to the low 63.8 billion reported in the same quarter of 25. The increase in EBITDA was mainly attributed to higher volume sales, increasing from 210,000 metric tons to 323,000 metric tons, as was mainly explained by the processing plant shutdown for more than a month caused by the flooding suffered on March 7, 2025. Higher volumes sales generated a higher EBITDA of $36.2 billion. In addition, we collected almost $12 billion in a partial expense reimbursement from the insurance company, and recorded $4.9 billion extraordinary expense resisted in the first quarter of 2025 related to the climate event, which also explained the EBITDA increase. Furthermore, the 70% unexpected increase in the average natural gas price in March 26, due to the war in Iran, also contributed with an additional 4.3 billion in EBITDA. However, lower LPG reference international prices partially offset the above-mentioned positive effects in 18.7 billion, along 5.8 billion of higher operating expenses. It is worth noting that the average natural gas price, which is the main variable cost for the liquid business segment, remained stable below the $2 per million of BTU in both quarters. Turning to slide 7, EBITDA from Midstream and other services rose by 46%. to 69.8 billion compared to 47.7 billion in the first quarter of 25. This increase was mainly driven by higher sales derived from the incremental built volume of natural gas transported and conditioned in Vaca Muerta totaling almost 17 billion. Transported natural gas built volume rose from an average of 28.3 million cubic meters per day in the first quarter of 2025 to 30.1 million cubic meters per day during this quarter. The natural gas conditioning volume also increased, from an average of 21 to 27.7 million cubic meters per day, as a result of the commissioning of the last new conditioning module in February of 2025. In addition, operating expenses decreased by 4.4 billion and the positive monetary effect result increased EBITDA by 1.5 billion. As seen on slide 8, we recorded a negative variation in the financial results amounting to 9.2 billion. This was mainly due to a $36.1 billion decrease in income from financial assets given the lower yields achieved in domestic and financial investments, $15.1 billion higher interest costs mainly attributed to the $500 million bond issued in November 2025, and inflation exposure loss increased by $10.6 billion. These negative effects were partially observed by the 54 billion positive variation of foreign exchange results, as the Argentine peso appreciated in the first quarter of 26 compared to a deep valuation occurred in the same period of 25. Finally, turning to the cash flow on slide 9, our cash position in real terms decreased by $173 billion in real terms during the first quarter of 26 to $1,806 billion equivalent to approximately $1.3 billion at the official exchange rate. EBITDA generation in the first quarter reached 306.5 billion, with 54% generated by non-regulated business, even after considering the fuel normalization of the natural gas transportation segment. This result highlights the increased relevance of the non-regulated activities within the company's overall results. Capets reached 143.4 billion for the period, while working capital rose by 35.5 billion. We also paid 35.3 billion in interest and 42 billion in income taxes, and we reduced our debt by 52 billion. Lastly, real returns from financial investments declined by 171 billion, mainly due to the 5% exchange rate decrease, while the Argentine peso inflation was 9.4% during the first quarter. This concludes our presentation. I will now turn it over to Carlos, who will open the floor for questions. Thank you.

Thank you.