Techint's CEO, Paolo Rocca, today highlighted the results of the elections in Argentina and expressed confidence that they will be a "turning point to stimulate the level of activity," when speaking to investors in Luxembourg. Rocca said that "market expectations were for a tie, but the actual results showed a clear victory for President Javier Milei's party, with over 40%. There was also a substantial reduction in the country risk, by almost 400 basis points, something that had not been foreseen or anticipated by the market," he noted. He considered this "important because it has also changed the willingness of financial operators to support initiatives and businesses in Argentina." Rocca said that oil companies "will now have greater access to external financing for their development projects. The election results have changed, let's say, the investors' perception of the future, the sustainability, and the ability to continue with the country's transformation plan by the current administration." "Although it was a midterm election, it still modifies the proportion and representation in Congress, in both chambers," he indicated. He expressed confidence that this "will give the government more room to maneuver to advance with its transformation plan. All of this has modified the perception and vision of the financial community." "There has been a very important increase in the value of the stock market, on the order of 30%. This change is combined with strong backing from the U.S. administration and substantial financial support from the United States. Gradually, we will possibly see more activity during 2026 and 2027, when more substantial reforms begin to advance," he said. "If we look at the first quarter, we anticipate an increase in the number of drilling rigs operating in the country. The access to financing for oil companies, in our opinion, will stimulate the level of investment. In the last six months, financial restrictions were a factor that conditioned decisions on new major projects that could be developed in the next two, three, or four years." "We hope that, gradually, there will be an increase in investment in the development of assets in Vaca Muerta, as well as a boost to long-term projects," he highlighted. An example could be the LNG project by ENI (the Italian energy company).
