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Eike Batista’s OGX Down $12.6B: Daily

By Ben Tavener, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – Second biggest petroleum company in Brazil, OGX, has fared the worst in terms of market value so far in 2012 of Brazil’s 295 companies publicly-traded on the São Paulo Bovespa stock exchange. Still the Bovespa has witnessed encouraging growth of R$147 billion (US$72 billion) this year, according to consultancy Economatica, who released its analysis of the year to October on Monday.

OGX share price Q1-3 2012, Brazil News
OGX’s share price plummeted over the first two quarters of 2012 from R$18 to R$5 and has fared little better since, image creation.

The privately-owned OGX – which belongs to multi-billionaire impresario Eike Batista’s EBX Group – has seen R$25.73 billion (US$12.6 billion) wiped from its books. Two other EBX companies are also said to have performed badly.

Brazil’s second biggest bank Itaú Unibanco, Eletrobras – Latin’s American biggest power utility company, and mining giant Vale have also performed badly, according to the report.

Conversely, beverages giant Ambev – known for big beer brands Brahma and Antarctica, and the soft drink Guaraná Antarctica – has seen the biggest gains, up R$42.7 billion (US$21 billion), with private toll-road operators CCR, cosmetics leader Natura, and oil industry leader Petrobras following close behind – despite the oil giant posting its worst quarter in thirteen years in August.

Of all the 22 sectors traded, four have performed poorly: energy companies, petroleum industries, telecoms firms and banks, of which three (not petroleum industries) have been subjected to major government-imposed regulatory changes in recent months.

Despite the losses to his companies, Eike Batista is still Brazil’s richest man and seventh wealthiest globally, with a personal fortune of around US$30 billion, according Forbes’ 2012 rich list.

Read more (in Portuguese).

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