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OGX Says Three Independent Board Members Left Amid Shares Rout

June 21, 2013

OGX Petroleo & Gas Participacoes SA, the oil-producing unit of billionaire Eike Batista, said three of its five independent board members left the company as shares trade close to a record low.

Pedro Malan, Rodolpho Tourinho Neto and Ellen Gracie Northfleetare no longer members of OGX’s board of directors, the Rio de Janeiro-based company said in a statement today, without elaborating on the reasons for the departure. OGX’s press office declined to give additional comments.

Batista is selling assets, restructuring debt at his holding company EBX Group Co. and trimming projects as his six publicly traded units accumulate losses. OGX tumbled 91 percent in the past year, the worst performer in Brazil’s Ibovespa index, amid lower-than-expected oil production and missed targets.

“The lack of a explicit justification for why they left sends a negative message,” Luana Helsinger, an analyst at brokerage GBM Grupo Bursatil Mexicano, said by phone from Rio.

Malan, a former Brazil finance minister, and Tourinho Neto, a former chairman of Petroleo Brasileiro SA (PETR3), were independent board members since 2008, according to the company’s website. Gracie had been on the board since 2011. OGX’s two remaining independent members are Luiz do Amaral and Samir Zraick, according to its website.

OGX slumped 6.9 percent to 81 centavos at 3:21 p.m. in Sao Paulo today, trading closer to its record low of 78 centavos reached on June 19.

To contact the reporters on this story: Juan Pablo Spinetto in Rio de Janeiro at; Peter Millard in Rio de Janeiro at

To contact the editor responsible for this story: James Attwood at

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