Eike Batista’s OGX Petroleo (OGXP3) & Gas Participacoes SA, the oil company that Deutsche Bank AG says may run out of cash next month, fell by a record 40 percent as the former billionaire sells shares.
In the final half hour of Sao Paulo trading, the shares tumbled to 30 centavos from 50 centavos in volume that was 4.8 times the three-month average, according to data compiled by Bloomberg. Brazil’s benchmark equity index rose 0.2 percent.
Batista’s commodities group extended the biggest rout among major stocks this year as the former billionaire sells shares and a dispute with Petroliam Nasional Bhd. fuels speculation OGX is facing an imminent cash crunch. The Rio de Janeiro-based company lost 63 percent this week, exceeding a decline in early July when it shelved projects and warned it may cease output at the only producing oilfield.
The company’s press office in Rio declined to comment in an e-mailed response to questions on today’s share decline.
OGX said this week that Petronas has no right to delay buying stakes in two Brazilian blocks for $850 million after the Malaysian producer said the deal hinges on OGX undertaking a debt restructuring. OGX will run out of cash this quarter if it doesn’t receive the first installment of the Petronas payment, Deutsche Bank said in Aug. 27.
The company announced this month that it hired Blackstone Group LP to advise on a study of its capital structure as Batista raises cash and sells company stakes and assets after his fortune plummeted on missed production and profit targets.
Batista sold 49.8 million OGX shares Aug. 28, or a 1.54 percent stake, and has shed a 5.67 percent holding since March, the company said in a regulatory filing yesterday.
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