Transportadora de Gas del Sur S A : 4Q 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

Fourth Quarter ended on December 31, 2021 ("4Q2021")(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 82.6 MMm3/d. We are one of the main natural gas processors. In addition, our infrastructure investments in Vaca Muerta formation place us as 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 https://www.tgs.com.ar/inversores/servicio-para-inversores?lang=EN

Buenos Aires, Argentina, March 8, 2022

During the 4Q2021, total comprehensive income amounted to Ps. 6,755 million, or Ps. 8.97 per share (Ps. 44.87 per ADS), compared to total comprehensive loss of Ps. 5,353 million, or Ps. 7.10 per share (Ps. 35.52 per ADS) in the fourth quarter ended on December 31, 2020 ("4Q2020").

	4Q2021	4Q2020
Revenues*	25,358	20,132
Operating profit before depreciation*	11,914	11,328
Operating profit*	9,444	4,186
Total comprehensive income / (loss)*	6,755	(5,353)
Earnings / (loss) per share in Ps.	8.97	(7.10)
Earnings / (loss) per ADS in Ps.	44.87	(35.52)
*in million of Argentine pesos

Financial results recorded a positive variation of Ps. 8,697 million.

Stock Information

BYMA Symbol: TGSU2

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

Shareholding structure as of Decmber 31, 2021 tgs holds 794,495,283 issued shares and 752,761,058 outstanding shares.

During 4Q2020, an impairment of Property, plant and equipment ("PPE") of Ps. 4,700 million was recorded, and no impairment was recorded during 4Q2021.

Operating profit before depreciation for 4Q2021 amounted to Ps. 11,914 million, an increase of Ps. 586 million compared to 4Q2020. This variation was mainly due to:

• Higher revenues of Ps. 5,226 million (26%). This was mainly due to higher revenues from the Production and Commercialization of Natural Gas Liquids (Liquids) segment of Ps. 7,092 million, which were partially offset by lower revenues from the Natural Gas Transportation segment (as no tariff increases were granted, which corresponded from October 2019, and April and October 2020) of Ps. 2,216 million.
• Operating costs and administrative and commercialization expenses increased by Ps. 4,584 million compared to 4Q2020.

1. The financial information presented in this press release is based on consolidated financial statements presented in constant Argentine pesos as of December 31, 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

4Q2021 EARNINGS RELEASE

4Q2021 highlights and subsequent events

• In December 2021, our Board of Directors approved investments amounting to US$ 82 million earmarked for the expansion of the conditioning plant located in Tratayén. These works, which are expected to be completed by mid 2023, will increase the supply of natural gas conditioning volume and will allow us to meet producers' demand.
• On February 7, 2022, the Energy Secretariat issued Resolution No. 67/2022, which was ratified by Decree No. 96/2022, creating the "Transport.Ar Producción Nacional" Natural Gas Pipeline System Program and declaring the construction of the President Néstor Kirchner natural gas pipeline and its expansion and complementary works of public interest. These works will be conducted by Integración Energética S.A. or third parties. This work is essential for tgsto continue growing its midstream business at Vaca Muerta formation, as well as other projects which tgsis currently evaluating.
• On February 23, 2022, the National Executive Branch issued Decree No. 91/2022 and ENARGAS issued Resolution No. 60/2022, ratifying the transitory agreement agreed with TGS, which resulted in a transitory tariff adjustment of 60%, effective as of March 1, 2022. Among other conditions, the tariff adjustment did not establish a mandatory investment plan but prohibited the: (i) distribution of dividends, (ii) an early cancellation of financial and commercial debts contracted with shareholders, and (iii) the acquisition of other companies or granting loans.
  Analysis of the results
  Total revenues amounted to Ps. 25,358 million in 4Q2021, a Ps. 5,226 million increase compared to Ps. 20,132 million in 4Q2020.

	20.000		Revenues 4Q2021 vs 4Q2020
	18.000				%68
	16.000
Arg.Pesos
14.000
12.000	28%
10.000
of
8.000
Million
6.000					18%
4.000
	2.000
	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 4Q2021 and 4Q2020 is shown in the table below:

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

4Q2021 EARNINGS RELEASE

	4Q2021		4Q2020		Variation
Concept	MM of Arg.Ps.	% / Total	MM of Arg.Ps.	% / Total	MM of Arg.Ps.	% / Total
Natural Gas Purchase (RTP)	6,586	49%	3,867	44%	2,719	70%
Labor costs	2,107	16%	2,314	26%	(207)	(9%)
Taxes, fees and contributions	1,673	12%	886	10%	787	89%
Repair and maintenance	1,398	10%	824	9%	574	70%
Other fees and third parties services	1,259	9%	771	9%	488	63%
Doubtful accounts	-	0%	(167)	(2%)	167	(100%)
Other charges	402	4%	346	4%	56	16%
Total	13,425		8,841		4,584

Operating costs and administrative and selling expenses,excluding depreciation and impairment of PPE, increased by approximately Ps. 4,584 million in 4Q2021 compared to 4Q2020. This variation is mainly explained by higher: (i) natural gas processing costs (following higher prices denominated in US dollars, which were partially offset by the inflation restatement effect in accordance with IAS 29 - "Financial Reporting in Hyperinflationary Economies" ("IAS 29")), (ii) taxes, fees and contributions (due to higher export taxes), and (iii) repair and maintenance of PPE expenses.

Financial resultsare presented in gross terms considering the effect of change in the currency purchasing power ("Gain on monetary position") in a single separate line. In 4Q2021, financial results recorded a positive variation of Ps. 8,697 million compared to 4Q2020. This variation is mainly related to the gain recorded in 4Q2021 due to the change in the fair value of financial assets, compared to a loss recorded in 4Q2020, and a lower negative exchange difference (as a consequence of the lower net liability position in foreign currency during 4Q2021 and the lower devaluation of the Argentine peso against the US dollar). These effects were partially offset by the lower gain on monetary position results, due to the effect of the lower net monetary liability position.

Analysis of operating profit / (loss) by business segment

Natural Gas Transportation

Operating profit before depreciation and impairment of PPE of the Natural Gas Transportation segmentdecreased by Ps. 3,219 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

4Q2021 EARNINGS RELEASE

		Natural Gas Transportation
	4Q2021	4Q2020	Variation	Variation in %
	(In million of Argentine pesos)
Revenues	5,588	7,804	(2,216)	(28%)
Intercompany revenues	164	358	(194)	(54%)
Operating and maintenance costs	(2,919)	(1,926)	(993)	52%
Other administratitve and selling expenses	(747)	(848)	102	(12%)
Other operating results	(1)	(83)	82	n/a
Operating profit before depreciation	2,085	5,304	(3,219)	(61%)
Depreciation and impairment of PPE	(1,840)	(6,532)	4,692	(72%)
Operating profit / (loss)	245	(1,229)	1,474	(120%)

Natural gas transportation revenues accounted for approximately 22% and 39% of total revenues in 4Q2021 and 4Q2020, respectively.

Revenues from this segment derive mainly from firm natural gas transportation contracts, which represented approximately 78% and 81%, of the total revenues of this segment in 4Q2021 and 4Q2020, respectively.

Natural Gas Transportation Operational information

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

The decrease in operating profit before depreciation and impairment of PPE was mainly due 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.

During 4Q2020, the Company recorded an impairment of PPE of Ps. 4,700 million, and no impairment was recorded during 4Q2021.

Liquids Production and Commercialization

Liquids Production and Commercialization revenues accounted for approximately 69% and 52% of total revenues in 4Q2021 and 4Q2020, respectively. During 4Q2021, production reached 317,386 metric tons (10,733 metric tons higher than 4Q2020).

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

4Q2021 EARNINGS RELEASE

	Production and Commercialization of Liquids
	4Q2021	4Q2020	Variation	Variation in %
	(In million of Argentine pesos)
Revenues	17,501	10,409	7,092	68%
Operating and maintenance costs	(8,042)	(5,393)	(2,649)	49%
Other administratitve and selling expenses	(1,063)	(174)	(890)	513%
Other operating results	(18)	115	(132)	(115%)
Operating profit before depreciation	8,378	4,957	3,420	69%
Depreciation of PPE	(156)	(149)	(7)	4%
Operating profit	8,222	4,808	3,414	71%

Operating profit before depreciation in this business segment during 4Q2021 was Ps. 3,420 million above 4Q2020, reaching Ps. 8,378 million (compared to Ps. 4,957 million recorded in 4Q2020). This variation mainly stems from the increase in revenues of Ps. 7,092 million, which were partially offset by higher natural gas processing costs of Ps. 2,719 million (resulting from a higher U.S. dollar-denominated price), and a higher export withholding tax charge of Ps. 715 million.

Liquids revenues were Ps. 17,501 million in 4Q2021, Ps. 7,092 million above 4Q2020. This was mainly due to higher international reference prices for natural gasoline and LPG amounting to Ps. 5,241 million, combined with the increase in the nominal variation of the exchange rate in U.S. dollar-denominated revenues of Ps. 1,477 million, and the increase in ethane price of Ps. 770 million.

Total volumes dispatched recorded an increase of 11%, or 32,201 metric tons, compared to 4Q2020, which represented an increase in revenues of Ps. 2,174 million. This increase was mainly due to the higher quantities of LPG exported.

The breakdown of volumes dispatched by market and product and revenues by market is included below:

	4Q2021	4Q2020	Variation
		(in metric tones)
Local Market
Ethane	103,198	102,705	493
Propane	45,981	52,535	(6,554)
Butane	38,311	35,709	2,602
Subtotal	187,490	190,949	(3,459)
Foreign Market
Propane	63,717	36,805	26,912
Butane	34,873	30,064	4,809
Natural gasoline	29,434	25,495	3,939
Subtotal	128,024	92,364	35,660
Total	315,514	283,313	32,201
(in millions of pesos)	4Q2021	4Q2020
Local market	8,165	6,381
Foreign market	9,336	4,028
Subtotal	17,501	10,409

These effects were partially offset by higher negative impact of the IAS 29 restatement of Ps. 2,861 million.

Other Services and Telecommunications

This business segment mainly includes services such as midstream and telecommunications, representing approximately 9% and 10% of our total revenues in 4Q2021 and 4Q2020, respectively.

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