Brazil’s Batista Does The Senior Management Shuffle

Eike Batista is the world’s 7th richest man according to Forbes.

SAO PAULO–Brazilian billionaire Eike Batista on Thursday reshuffled the senior management at his oil and ship-building companies, which have seen their stocks lose heavily over the last two days amid investor concerns over performance.

Paulo Mendonca will step down from his front-line position as chief executive at Mr. Batista’s oil company, OGX Petroleo e Gas Participacoes SA (OGXP3.BR, OGXPY), to take up an advisory role within Mr. Batista’s holding company, known as EBX Group, OGX said in a statement.

OGX’s shares plunged 25% on Wednesday and nearly 20% on Thursday, after the firm reported production from its first two oil wells was far below earlier expectations. OSX, which largely builds oil platforms for OGX, saw its shares fall 12% on Wednesday and 11% on Thursday.

Luiz Eduardo Guimaraes Carneiro will take over as chief executive at OGX, leaving his current position as the head of the EBX Group’s shipyard unit, OSX Brasil SA (OSXB3.BR, OSXRY), according to the statement. Mr. Carneiro worked at Brazil’s government-run oil giant, Petroleo Brasileiro SA (PBR, PETR4.BR), for more than 30 years before taking over at OSX in 2009.

Mr. Batista has in turn appointed Carlos Bellot to take over as chief executive at OSX, and will retain until further notice his existing position as OSX’s head of operations, engineering, logistics and development, OSX said in a statement.

Mr. Bellot worked at Petrobras for 30 years before switching to OSX, the statement said.

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