Business Context and Reporting Period
Company: Transportadora de Gas del Sur S.A. (TGS)
Filing Date: November 3, 2004
Event: Execution of an agreement to expand the General San Martín Pipeline.
Key Financial Metrics
The filing does not provide current revenue, profit, cash flow, margins, or liquidity figures. It focuses on a specific capital project:
- Total Project Investment: Approximately US$ 285 million.
- TGS Contribution: US$ 40 million (comprising cash and existing assets).
- Historical Investment: Over US$ 1 billion invested in system expansion over the previous twelve years.
Material Changes and Project Details
TGS signed an agreement with Petrobras, the Argentine Government, Nación Fideicomisos S.A., and other parties to expand the General San Martín Pipeline.
- Capacity Increase: 2.9 million cubic meters per day (102.4 million cubic feet per day).
- Operational Timeline: Expected to be in operation during the winter of 2005.
- Role: TGS will serve as Project Manager and handle operation and maintenance of the new facilities.
Management Commentary and Outlook
Management emphasizes the company's commitment to the country and the significant effort dedicated to implementing this project. The expansion is presented as a continuation of TGS's long-term strategy to grow its transportation system.
Investor Verification Points
- Verify the specific breakdown of the US$ 40 million TGS contribution between cash and asset valuation.
- Confirm the funding sources for the remaining US$ 245 million of the project investment.
- Monitor the project timeline to ensure the winter 2005 operational target is met.
- Review the terms of the agreement with Petrobras and the Argentine Government regarding revenue sharing or tariff adjustments for the new capacity.