Transportadora de Gas del Sur S A : 2Q 2021

Contacts in Buenos Aires, Argentina:

Investor Relations	Media Relations
Leandro Perez Castaño, Finance and IR Manager.	Mario Yaniskowski
 [e-mail]	 [e-mail]
Carlos Almagro, Investor Relations Officer
 [e-mail]

tgs Announces Results for the

Second Quarter ended on June 30, 2021(1)

Transportadora de Gas del Sur ("tgs", "the Company", "us", "our", or "we") is the leader in Argentina in the

transportation of natural gas, transporting approximately 60% of the gas consumed in the country, through more than 5,700 miles of gas pipelines, with a firm-contracted capacity of 2.9 Bcf/d. We are one of the main natural gas processors. In addition, our infrastructure investments in Vaca Muerta formation is a milestone with the aim of becoming one of the main Midstreamers at Vaca Muerta.

Our shares are traded on NYSE (New York Stock Exchange) and BYMA (Bolsas y Mercados Argentinos S.A.).

Our controlling company is Compañía de Inversiones de Energía S.A. ("CIESA"), which owns 51% of the total share capital. CIESA's shareholders are: (i) Pampa Energía S.A. with 50%, (ii) Grupo Investor Petroquímica S.L. (member of the GIP group, led by the Sielecki family) and PCT L.L.C. hold the remaining 50%.

For further information, see our website www.tgs.com.ar

Stock Information

BYMA Symbol: TGSU2

NYSE Symbol:TGS (1 ADS = 5 ordinary shares)

Shareholding structure as of June 30, 2021 tgs holds 794,495,283 issued shares and 752,761,058 outstanding shares.

Buenos Aires, Argentina, August 4, 2021

During the 2Q2021, total comprehensive income amounted to Ps. 3,391 million, or Ps. 4.50 per share (Ps. 22.52 per ADS), compared to total comprehensive income of Ps. 2,612 million, or Ps.

3.43 per share (Ps. 17.14 per ADS) for the second quarter ended on June 30, 2020 (2Q2020).

	2Q2021	2Q2020
Revenues*	17,875	16,104
Operating profit before depreciation*	8,185	8,658
Operating profit*	6,204	6,770
Total comprehensive income*	3,391	2,612
Earnings per share in Ps.	4.50	3.43
Earnings per ADS in Ps.	22.52	17.14

*in million of Argentine pesos

Operating profit for 2Q2021 amounted to Ps. 6,204 million, a decrease of Ps. 566 million compared to

2Q2020. This variation was mainly due to:

• Lower revenues from the Natural Gas Transportation segment of Ps. 2,376 million due to lack of tariffs adjustment since April 2019;
• Operating costs and administrative and
  commercialization expenses, excluding depreciation, increased by Ps. 2,186 million compared to 2Q2020; and
• Depreciation increased by Ps. 94 million,
• Higher revenues from the Production and Commercialization of Natural Gas Liquids (Liquids) and Other Services segments amounting Ps. 3,955 million and Ps. 192 million, respectively, partially offset the decreases mentioned above.

Financial results recorded a positive variation of Ps. 3,671 million.

The income tax expense rose by Ps. 2,308 million.

1. The financial information presented in this press release is based on consolidated interim financial statements presented in constant Argentine pesos as of June 30, 2021 (Ps.) which is based on the application of the International Financial Reporting Standards (IFRS).

Transportadora de Gas del Sur S.A.

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3672 Don Bosco St. (1206), Autonomous City of Buenos Aires, Argentina. https://www.tgs.com.ar/investors/Press-releases

2Q 2021 EARNINGS RELEASE

2Q2021 highlights and subsequent events

• On June 2, 2021, the National Gas Regulatory Body ("ENARGAS") issued Resolution No. 149/2021 (the "Resolution 149") approving a Transitional Tariff Regime (the "Transitional Regime") fortgseffective as of that date. The Transitional Regime: (i) does not grant a transitory tariff increase for the Company, but rather states that current tariff charts in place since April 1, 2019 remain unchanged; (ii) states that from its effective date - and until the Final Renegotiation Agreement is in force - ENARGAS may adjust tgs'tariffs starting April 1, 2022; (iii) it does not establish a mandatory investment plan for tgsand, (iv) it prohibits the distribution of dividends, any early cancellation of financial and commercial debts contracted with shareholders, as well as the acquisition of other companies or granting of loans.
• In July 2021, in order to protect the interests of its shareholders,tgsfiled administrative claims to the Executive Branch, the National Ministry of Economy and ENARGAS challenging and requesting the nullity of the different regulations provided in the Transitional Regime.
• During June 2021, the Company purchased its own notes for a nominal value of US$ 2,030,000.
  COVID-19 and the measures adopted
  On July 9, 2021, the Executive Branch issued the Presidential Decree No. 455/2021, which extended the Presidential Decree No. 287/2021 that was published on May 1, 2021. Such decree establishes an "epidemiological traffic light" that allows provincial authorities to define pertinent sanitary restrictions to preserve the sanitary situation in their provinces.
  These measures will remain in effect until August 6, 2021, implying that tgswill have to readjust its operations again to continue to provide its services and execute essential works to operate the facilities.
  Considering our current financial position and measures taken previously, we estimate that we will have sufficient resources to meet the current working capital needs, finance capital expenditures and pay off short-term financial debt obligations without incurring in any additional debt.
  Despite the aforementioned measures, the extent and duration of these developments remain uncertain and could impact the operating results, cash flow and financial condition, but will depend on the severity of the health emergency and the success of the government's measures adopted thus far as well as any future ones.
  Analysis of the results
  Total revenues added to Ps. 17,875 million in 2Q2021, a Ps. 1,771 million increase compared to Ps. 16,104 million in 2Q2020.

Transportadora de Gas del Sur S.A.

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3672 Don Bosco St. (1206), Autonomous City of Buenos Aires, Argentina. https://www.tgs.com.ar/investors/Press-releases

2Q 2021 EARNINGS RELEASE

			Revenues 2Q2021 vs 2Q2020
	12,000				55%
	11,000
	10,000
Arg.Pesos	9,000	32%
8,000
7,000
6,000
of
5,000
Million
4,000					13%
3,000
	2,000
	1,000
	0
		2021	2020	2021	2020	2021	2020
		Natural Gas Transportation		Liquids	Other Services
		Arg.Ps without inflation adjustment		Arg. Ps. with inflation adjustment

The breakdown ofoperating costs, administrative and commercialization expenses, excluding depreciation, for 2Q2021 and 2Q2020 is shown below:

	2Q2021		2Q2020		Variation
Concept	MM of Arg.Ps.	% / Total	MM of Arg.Ps.	% / Total	MM of Arg.Ps.	% / Total
Natural Gas Purchase (RTP)	5,057		52%	3,397	45%	1,660	49%
Labor costs	1,639		17%	1,349	18%	290	21%
Taxes, fees and contributions	1,051		11%	936	13%	115	12%
Repair and maintenance	863		9%	552	7%	311	56%
Other fees and third parties services	829		9%	881	12%	(52)	(6%)
Doubtful accounts	(55)		(1%)	41	1%	(96)	(234%)
Other charges	279		3%	321	4%	(42)	(13%)
Total	9,663			7,477		2,186

Operating costs and administrative and selling expenses,excluding depreciation, increased by approximately Ps. 2,186 million in 2Q2021 compared to 2Q2020. This variation is mainly explained by higher: (i) natural gas costs (higher prices denominated in US dollars, partially offset by the inflation restatement effect in accordance with IAS 29 - "Financial Reporting in Hyperinflationary Economies" ("IAS 29")), (ii) operating costs, and (iii) taxes, fees and contributions (due to higher export taxes, partially offset by lower turnover tax). These effects were partially offset by the positive effect of lower doubtful accounts provisions.

Financial resultsare presented in gross terms considering the effects of change in the currency purchasing power ("Gain on monetary position") in a single separate line. In 2Q2021, financial results recorded a positive variation of Ps. 3,671 million compared to 2Q2020. This variation is mainly due to: (i) lower negative exchange difference (as a result of the lower net liability position in foreign currency during 2Q2021 and lower devaluation of the Argentine peso against the US dollar), (ii) higher RECPAM due to the effect of the increase in the Consumer Price Index ("CPI"), (iii) lower interest expense generated by liabilities in nominal terms, (iv) higher interest generated by assets, and (v) lower losses from derivative financial instruments. These effects were partially offset by the loss recorded from the repurchase of notes.

The income tax charge rose by Ps. 2,308 million, mainly as a result of the increase in the applicable rate following the amendments introduced by Law No. 27,630, enacted in June 2021, which provides a progressive increase in the applicable rate to 35% in the case of taxable income above Ps. 50 million.

Transportadora de Gas del Sur S.A.

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3672 Don Bosco St. (1206), Autonomous City of Buenos Aires, Argentina. https://www.tgs.com.ar/investors/Press-releases

2Q 2021 EARNINGS RELEASE

Analysis of operating profit by business segment

Operating Profit 2Q2021 vs 2Q2020

Million of Arg. Pesos

5000

4500

4000

3500

3000

2500

2000

1500

1000

500

0

Natural Gas	Liquids	Other Services and
Transportation				telecommunications
		2Q2021			2Q2020

Natural Gas Transportation

Operating profit before depreciation of the Natural Gas Transportation segmentdecreased by Ps. 2,436 million.

		Natural Gas Transportation
	2Q2021	2Q2020	Variation	Variation in %
	(In million of Argentine pesos)
Revenues	5,087	7,463	(2,376)	(32%)
Intercompany revenues	215	244	(29)	(12%)
Operating and maintenance costs	(1,852)	(1,772)	(80)	5%
Other administratitve and selling expenses	(640)	(759)	119	(16%)
Other operating results	(67)	3	(70)	n/a
Operating profit before depreciation	2,743	5,179	(2,436)	(47%)
Depreciation of PPE	(1,464)	(1,385)	(79)	6%
Operating profit	1,279	3,794	(2,515)	(66%)

Natural gas transportation revenues accounted for approximately 28% and 46% of total revenues in 2Q2021 and 2Q2020, respectively.

Revenues from this segment derive mainly from firm natural gas transportation contracts, which represented approximately 84% and 83%, respectively, of the total revenues of this segment in 2Q2021 and 2Q2020.

Transportadora de Gas del Sur S.A.

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3672 Don Bosco St. (1206), Autonomous City of Buenos Aires, Argentina. https://www.tgs.com.ar/investors/Press-releases

2Q 2021 EARNINGS RELEASE

Operational information

This business segment, subject to ENARGAS regulation, received its last tariff adjustement on April 1st, 2019, following Resolution No. 192/2019 (2).

The decrease in operating profit was mainly related to lower revenues given the lack of a tariff adjustment to compensate for the negative variation associated with the inflation restatement effect under IAS 29.

Liquids Production and Commercialization

Liquids Production and Commercialization revenues accounted for approximately 62% and 44% of total revenues in 2Q2021 and 2Q2020, respectively. During 2Q2021, production reached 280,852 short tons (12,578 short tons below 2Q2020).

	Production and Commercialization of Liquids
	2Q2021	2Q2020	Variation	Variation in %
	(In million of Argentine pesos)
Revenues	11,108	7,153	3,955	55%
Operating and maintenance costs	(6,202)	(4,138)	(2,064)	50%
Other administratitve and selling expenses	(530)	(465)	(65)	14%
Other operating results	35	30	5	17%
Operating profit before depreciation	4,411	2,580	1,831	71%
Depreciation of PPE	(125)	(120)	(5)	4%
Operating profit	4,286	2,460	1,826	74%

Operating profit before depreciation in this business segment in 2Q2021 was Ps. 1,831 million above 2Q2020, reaching Ps. 4,411 million (compared to Ps. 2,580 million in 2Q2020). This variation stems from an increase in revenues of Ps. 3,955 million, which was partially offset by: (i) an increase in natural gas processing costs (mainly due to the effect of the higher U.S. dollar-denominated price) of Ps. 1,660 million, (ii) higher operating expenses of Ps. 323 million, and (iii) higher export withholding tax charge of Ps. 136 million. These effects were partially offset by the recovery in the allowance for doubtful accounts of Ps. 55 million (compared to a charge of Ps. 41 million in 2Q2020).

1. For further information, see "2Q2021 highlights and subsequent events" in this Report.

Transportadora de Gas del Sur S.A.

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3672 Don Bosco St. (1206), Autonomous City of Buenos Aires, Argentina. https://www.tgs.com.ar/investors/Press-releases