Q2 2024 Transportadora de Gas del Sur SA Earnings Call Transcript
Key Points
- Transportadora de Gas del Sur SA (TGS) reported strong contract inflow with $368 million in new contracts signed during Q2, boosting the total backlog to over $600 million.
- The company achieved a high early sales rate of 94% in Q2, indicating strong prefunding of new projects and healthy sales of existing projects.
- TGS announced a significant four-year software licensing agreement with Shell for its Imaging AnyWare software, marking a new business area for the company.
- The acquisition of PGS was completed, and TGS is realizing substantial synergies, including moving into the same offices by October 1.
- TGS's acquisition business is fully utilized for Q3, indicating a strong quarter ahead with significant increase in activity compared to previous quarters.
- TGS's POC revenues decreased to $215 million in Q2, down from $241 million in the same quarter of the previous year.
- The company's EBIT fell to $28 million in Q2, compared to $39 million in the same quarter last year.
- Proprietary revenues declined to $100 million from $113 million in the same quarter of the previous year.
- The company incurred $6.2 million in one-off transaction costs related to the PGS acquisition during the quarter.
- TGS's multi-client investments were lower in the first half of the year, indicating a back-end loaded investment strategy for 2024.
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Good morning. And welcome to TGS Q2 2024 results presentation. My name is Bård Stenberg, Vice President of Investor Relations in TGS. Today's presentation will be given by CEO, Kristian Johansen; and CFO, Sven Børre Larsen.
Before we start, I would like to draw your attention to the forward-looking statements showing on the screen and available in today's presentation and earnings release. You can also start typing in questions during the presentation. And I will address those questions to management after their concluding remarks.
So with that, I give the word to you, Kristian.
Thank you, BÃ¥rd. So I hit the highlights right away. So TGS had POC revenues. And this is stand-alone TGS. POC revenues of $215 million in Q2. That compares to $241 million in Q2 of 2023. Our late sales were $66 million. That's up from $63 million in the same quarter of last year. And then, we had early
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