OGX Petroleo (OGXP3) & Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, dropped the most in two months after announcing the second top management replacement since June.
OGX dropped 8.7 percent to 5.98 reais at 11:24 a.m. in Sao Paulo, after plummeting as much as 9.2 percent, the most intraday since June 28. The stock has fallen 55 percent this year.
Exploration Director Paulo dos Santos is stepping down to take a position at Batista’s EBX Group Co. holding company and will be replaced by Paulo Guimaraes, an executive at Santos’s department, OGX said in a statement today. The replacement follows the departure of Paulo Mendonca as chief executive officer in June after OGX slashed its output goal by 75 percent.
OGX will reduce investments to $1.2 billion in 2013 from about $2 billion this year, Chief Financial Officer Roberto Monteiro said on an Aug. 15 conference call.
To contact the reporters on this story: Rodrigo Orihuela in Rio de Janeiro at firstname.lastname@example.org; Peter Millard in Rio de Janeiro at email@example.com
To contact the editor responsible for this story: James Attwood at firstname.lastname@example.org