Q4 2024 Transportadora de Gas del Sur SA Earnings Call Transcript
Key Points
- Transportadora de Gas del Sur SA (TGS) reported a 19% increase in total revenues for Q4 2024, reaching $492 million compared to $414 million in Q4 2023.
- The company successfully completed a balance sheet refinancing of existing PGS debt at attractive terms, ahead of the planned schedule.
- TGS realized $100 million in merger synergies, significantly surpassing the initial target of $60 million.
- The board of directors approved an 11% increase in dividends compared to 2024, reflecting confidence in the company's financial health.
- TGS achieved a strong multi-client sales to investment ratio of 2.6% for Q4 2024, well above the historical average of 1.9%.
- EBITDA margin decreased to 25% in Q4 2024 from 29% in the same quarter of the previous year.
- The company experienced a significant negative impact on cash flow due to working capital developments and refinancing costs.
- There was relatively low utilization of the streamer fleet, partly due to necessary yard stays.
- Multi-client revenues were down in the new energy solutions segment due to low data acquisition activity.
- The company faces challenges with permit delays and environmental issues, impacting the timing of project execution.
Welcome to our TGS Q4 2024 presentation. My name is Bard Stenberg, Vice President of Investor relations in TGS.
Today's presentation will be given by CEO Kristian Johansen and CFO Sven Borre Larsson.
(operator Instructions).
So with that, I give the word to you Kristian.
Thank you, Bard and welcome to the presentations. So, before I start on the first slide, so that TGS PGS merger completed on July 1 last year. So, all financial numbers in this presentation are based on pro forma numbers unless stated otherwise.
Financial numbers are also based on POC or percentage of completion for ongoing multi-client projects unless otherwise stated.
So, with that, I'm going to hit the highlights of Q4. So, we have total revenues of $492 million in the quarter. That's up by about 19% from $414 million in Q4 2023.
Our EBITDA
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