GAS TRANSPORTER OF THE SOUTH INC | CIK:0000931427 | 3

  • Filed: 4/16/2018
  • Entity registrant name: GAS TRANSPORTER OF THE SOUTH INC (CIK: 0000931427)
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    • ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory

    7.
    CONSOLIDATED BUSINESS SEGMENT INFORMATION

    IFRS 8 “Operating Segments” requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Board of Directors.

    The CODM evaluates the business based on the differences in the nature of the Company’s products and services. The business segment information is reported consistently with the information reviewed by the Board of Directors. The amount reported for each segment item is the measure reported to the CODM for these purposes. This measure is the operating profit / deficit.

    Operating segments identified are disclosed as reportable segments if they meet any of the following quantitative thresholds:

    Reported revenues of the operating segments are 10% or more of the combined revenue, internal and external, of all operating segments;

    The absolute amount of reported profit or loss is 10% or more of the greater, in absolute amount, of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined reported loss of all operating segments that reported a loss.

    Assets are 10% or more of the combined assets of all operating segments

    As well as this, the operating segments that do not meet any of the quantitative thresholds can be considered as reportable segments if the management estimates that this information could be useful for the users of the financial statements.

    If, after determining reportable segments in accordance with the preceding quantitative thresholds, the total external revenue attributable to those segments amounts to less than 75% of the total Company’s consolidated external revenue, additional segments are identified as reportable segments, even if they do not meet the thresholds described above, until at least 75% of the Company’s consolidated external revenue is included in reportable segments.

    Segment information has been prepared and classified according to different types of businesses in which the Company conducts its activities. The four reportable segments are as follows:

    Natural Gas Transportation: Revenues of this business segment are derived mainly from firm contracts, under which pipeline capacity is reserved and paid for regardless of actual usage by the customer. The Company also provides interruptible natural gas transportation services and exchange and displacement services subject to available pipeline capacity. In addition, TGS renders operation and maintenance services of the Natural Gas Transportation facilities, which belong to certain gas trusts (fideicomisos de gas) created by the Argentine Government to expand the capacity of the Argentine natural gas transportation pipeline system (Note 17.c). This business segment is subject to ENARGAS regulation.

    Production and Commercialization of Liquids: Liquids production and commercialization activities are conducted at Cerri Complex, which is located, near the city of Bahía Blanca in the Province of Buenos Aires. In the Cerri Complex, ethane, LPG and natural gasoline are extracted from the natural gas, which arrives through three main pipelines from the Neuquén and Austral natural gas basins. TGS sells its production of liquids in the domestic and the international markets. TGS sells part of its production of propane and butane to liquids marketers in the domestic market. The remainder of these products and all of its natural gasoline are exported at current international market prices. Ethane is entirely sold in the domestic market to PBB-Polisur S.A. at agreed prices.

    Other services: Midstream services include natural gas treatment, separation, and removal of impurities from the natural gas stream, as well as natural gas compression, rendered at the wellhead typically for natural gas producers. In addition, TGS provides services related to pipeline and compression plant construction, operation and maintenance of pipelines and compressor plants services, as well as steam generation for electricity production.
     
    Moreover, within this segment services provided by the UT were included. For further information, see Note 10.

    Telecommunications: Telecommunication services are rendered through Telcosur, a company controlled by TGS. Telcosur provides services as an independent carrier of carriers to leading telecommunication operators and corporate customers located in its service area.

    Detailed information on each business segment for the years ended December 31, 2017, 2016 and 2015 is disclosed below:

    Year ended December 31, 2017
    		 
      
    Natural Gas
    Transportation
    		  
    Production and
    Commercialization of
    Liquids
    		  
    Other
    Services
    		  
    Telecommunications
    		  
    Eliminations
    		  
    Total
    		 
    Revenues from sales (1)
    		  
    4,559,739
    		   
    6,875,241
    		   
    735,839
    		   
    75,845
    		   
    -
    		   
    12,246,664
    		 
    Intersegment revenues
    		  
    150,388
    		   
    -
    		   
    -
    		   
    -
    		   
    (150,388
    )
    		  
    -
    		 
    Cost of sales
    		  
    (1,845,551
    )
    		  
    (4,428,764
    )
    		  
    (353,676
    )
    		  
    (45,714
    )
    		  
    150,388
    		   
    (6,523,317
    )
    Administrative expenses
    		  
    (316,627
    )
    		  
    (59,249
    )
    		  
    (22,984
    )
    		  
    (4,135
    )
    		  
    -
    		   
    (402,995
    )
    Selling expenses
    		  
    (260,313
    )
    		  
    (163,746
    )
    		  
    (66,306
    )
    		  
    (9,544
    )
    		  
    -
    		   
    (499,909
    )
    Other operating (expenses) / income
    		  
    (126,027
    )
    		  
    27,253
    		   
    (5,758
    )
    		  
    155
    		   
    -
    		   
    (104,377
    )
    Operating profit
    		  
    2,161,609
    		   
    2,250,735
    		   
    287,115
    		   
    16,607
    		   
    -
    		   
    4,716,066
    		 
    Depreciation of property, plant and equipment
    		  
    (245,600
    )
    		  
    (20,170
    )
    		  
    (92,650
    )
    		  
    -
    		   
    -
    		   
    (358,420
    )

    (1)
    Revenues from sales from Production and Commercialization of Liquids segment includes Ps. 235,459 of Government subsidies.

    Identifiable assets
    		  
    8,284,454
    		   
    3,911,169
    		   
    1,410,054
    		   
    61,223
    		   
    -
    		   
    13,666,900
    		 
    Identifiable liabilities
    		  
    5,991,730
    		   
    1,217,863
    		   
    1,120,469
    		   
    17,198
    		   
    -
    		   
    8,347,260
    		 

     
     
    		 
    Natural Gas
    Transportation
    		  
    Production and
    Commercialization of
    Liquids
    		  
    Other
    Services
    		  
    Telecommunications
    		     
    Total
    		 
    External market
    		  
    -
    		   
    2,676,792
    		   
    -
    		   
    -
    		   
    -
    		   
    2,676,792
    		 
    Local market
    		  
    4,559,739
    		   
    4,198,449
    		   
    735,839
    		   
    75,845
    		   
    -
    		   
    9,569,872
    		 

    Year ended December 31, 2016
    		    
      
    Natural Gas
    Transportation
    		  
    Production and
    Commercialization of
    Liquids
    		  
    Other
    Services
    		  
    Telecommunications
    		  
    Eliminations
    		  
    Total
    		 
    Revenue from sales (1)
    		  
    2,087,191
    		   
    4,768,326
    		   
    485,855
    		   
    60,800
    		   
    -
    		   
    7,402,172
    		 
    Intersegment revenues
    		  
    71,079
    		   
    -
    		   
    -
    		   
    -
    		   
    (71,079
    )
    		  
    -
    		 
    Cost of sales
    		  
    (1,068,714
    )
    		  
    (3,218,936
    )
    		  
    (187,815
    )
    		  
    (31,529
    )
    		  
    71,079
    		   
    (4,435,915
    )
    Administrative expenses
    		  
    (264,821
    )
    		  
    (32,535
    )
    		  
    (14,734
    )
    		  
    (3,289
    )
    		  
    -
    		   
    (315,379
    )
    Selling expenses
    		  
    (121,189
    )
    		  
    (180,499
    )
    		  
    (44,286
    )
    		  
    (7,540
    )
    		  
    -
    		   
    (353,514
    )
    Other operating (expenses) / income
    		  
    (44,678
    )
    		  
    (19,147
    )
    		  
    (1,261
    )
    		  
    (457
    )
    		  
    -
    		   
    (65,543
    )
    Operating profit
    		  
    658,868
    		   
    1,317,209
    		   
    237,759
    		   
    17,985
    		   
    -
    		   
    2,231,821
    		 
    Depreciation of property, plant and equipment
    		  
    (238,844
    )
    		  
    (16,693
    )
    		  
    (31,261
    )
    		  
    -
    		   
    -
    		   
    (286,798
    )

    (1)
    Revenues from sales from Production and Commercialization of Liquids segment includes Ps. 183,870 of National Government subsidies.
     
    Identifiable assets
    		  
    6,454,526
    		   
    1,184,593
    		   
    1,235,079
    		   
    57,134
    		   
    -
    		   
    8,931,332
    		 
    Identifiable liabilities
    		  
    4,209,833
    		   
    1,214,944
    		   
    968,527
    		   
    11,650
    		   
    -
    		   
    6,404,954
    		 
     
     
     
    		 
    Natural Gas
    Transportation
    		  
    Production and
    Commercialization of
    Liquids
    		  
    Other
    Services
    		  
    Telecommunications
    		     
    Total
    		 
    External market
    		  
    -
    		   
    1,437,902
    		   
    -
    		   
    -
    		   
    -
    		   
    1,437,902
    		 
    Local market
    		  
    2,087,191
    		   
    3,330,424
    		   
    485,855
    		   
    60,800
    		   
    -
    		   
    5,964,270
    		 
     
    Year ended December 31, 2015
    		    
      
    Natural Gas
    Transportation
    		  
    Production and
    Commercialization of
    Liquids
    		  
    Other
    Services
    		  
    Telecommunications
    		  
    Eliminations
    		  
    Total
    		 
    Revenue from sales (1)
    		  
    1,013,998
    		   
    2,907,770
    		   
    260,600
    		   
    44,201
    		   
    -
    		   
    4,226,569
    		 
    Intersegment revenues
    		  
    21,435
    		   
    -
    		   
    -
    		   
    -
    		   
    (21,435
    )
    		  
    -
    		 
    Cost of sales
    		  
    (779,923
    )
    		  
    (1,869,397
    )
    		  
    (108,617
    )
    		  
    (23,403
    )
    		  
    21,435
    		   
    (2,759,905
    )
    Administrative expenses
    		  
    (172,667
    )
    		  
    (16,512
    )
    		  
    (9,985
    )
    		  
    (2,472
    )
    		  
    -
    		   
    (201,636
    )
    Selling expenses
    		  
    (48,082
    )
    		  
    (155,747
    )
    		  
    (32,889
    )
    		  
    (4,612
    )
    		  
    -
    		   
    (241,330
    )
    Other operating (expenses) / income
    		  
    (332,997
    )
    		  
    (2,663
    )
    		  
    191
    		   
    18
    		   
    -
    		   
    (335,451
    )
    Operating profit
    		  
    (298,236
    )
    		  
    863,451
    		   
    109,300
    		   
    13,732
    		   
    -
    		   
    688,247
    		 
    Depreciation of property, plant and equipment
    		  
    (194,659
    )
    		  
    (49,651
    )
    		  
    (17,083
    )
    		  
    -
    		   
    -
    		   
    (261,393
    )

    (1)
    Revenues from sales from Production and Commercialization of Liquids segment includes Ps. 126,929 of Government subsidies.
     
    Identifiable assets
    		  
    5,032,799
    		   
    1,237,732
    		   
    310,441
    		   
    65,605
    		   
    -
    		   
    6,646,577
    		 
    Identifiable liabilities
    		  
    4,095,216
    		   
    625,023
    		   
    196,031
    		   
    34,873
    		   
    -
    		   
    4,951,143
    		 
     
     
     
    		 
    Natural Gas
    Transportation
    		  
    Production and
    Commercialization of
    Liquids
    		  
    Other
    Services
    		  
    Telecommunications
    		     
    Total
    		 
    External market
    		  
    -
    		   
    967,340
    		   
    -
    		   
    -
    		   
    -
    		   
    967,340
    		 
    Local market
    		  
    1,013,998
    		   
    1,940,430
    		   
    260,600
    		   
    44,201
    		   
    -
    		   
    3,259,229