Transportadora de Gas del Sur, Argentina's biggest natural gas pipeline operator and a leading natural gas liquids producer, said its profit dropped by more than half in the second quarter versus the same period of 2011 as higher sales failed to compensate for currency depreciation.
The Buenos Aires-based company said it earned Pesos 21.2 million ($4.6 million) in the second quarter, down from Pesos 45.1 million earned in the year-earlier period, according to a filing with the Buenos Aires Stock Exchange late Tuesday.
Revenue rose 47% to Pesos 536.5 million in the second quarter, compared with Pesos 365.1 million in the year-earlier period, it said.
Gas transportation revenue was virtually unchanged at Pesos 148.1 million in the second quarter, compared with the year-earlier period, while NGL revenue shot up 82% to Pesos 350.7 million from Pesos 193 million over the same period on higher demand and a more than 30% increase in ethane prices.
The company's NGL business accounted for 65% of its total second quarter revenue, while gas transport accounted for 28% and other businesses such as pipeline construction accounting for the remainder.
TGS said operating costs surged 56% to Pesos 433.6 million in the second quarter from Pesos 277.5 million in the year-earlier period on higher NGL production costs and taxes.
A depreciation of the peso against the dollar, which quickened pace in 2012 compared with 2011, led to losses related to its dollar-denominated debts, it added.
TGS has capacity to transport 81.5 million cu m/d, or around 68% of average national demand in a country that relies on gas for more than 50% of its energy needs.
