The CAMMESA payment-delay saga seems to be in the rear-view mirror. The Argentine government entity paid power generators’ May invoices with a weighted average of 55 days. MSU Energy has already received the payment and recognized the impairment. The combination of the southern-hemisphere winter fading and new rates paid by consumers mean the market administrator should have a more robust situation and be able to pay “on time” in the future.

There were no explicit details about plans to address MSU Energy’s USD 600m international bond mentioned during the earnings call, which was a little disappointing considering the maturity is just six months away. No bondholders asked questions, and only two Argentine sell-side analyst did — and about nothing related to the refinancing.

However, we thought the most interesting part of the call was when the CFO mentioned a factoring operation related to the May and June CAMMESA invoices during 2Q24. Otherwise, it is hard to explain the sharp increase in the firm’s cash to USD 53m as of June 2024 (USD 40m after paying the remaining of the class V domestic bonds during July).