Argentina’s Utilities Rally on Second Rate Increase in 14 Years

Shares of Argentina’s natural gas pipeline operators climbed after regulators allowed the second rate increase in 14 years.

Transportadora de Gas del Sur’s shares jumped 5 percent, the most in two months, at 12:09 p.m. in Buenos Aires. Transportadora de Gas del Norte shares advanced 2.5 percent.

Energy regulators granted TGS an average rate raise of 44 percent on Monday while TGN was given a 69 percent increase for their gas transportation business and investment. Profits at Argentina’s utility companies have fizzled as the government kept a freeze on rates since the 2001 financial crisis, while costs increased.

The announcement prompted Raymond James Financial Inc. to upgrade TGS to the equivalent of buy and forecast a 32 percent jump in its American depositary receipts, according to an e-mailed report to investors.

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