Not long ago, Batista was heralding dividends from EBX companies in 2014, but just pushed that date out by a year. With oil prices falling and Brazil’s growth waning, it’s not obvious how much longer Batista can promise jam tomorrow. For now, investors are left to stew in the EBX juice.
All stocks in Eike Batista’s group show worse performance than Ibovespa, the São Paulo Stock Exchange’s benchmark index, last year and in this beginning of 2013. Ibovespa rose 7.4% last year. Stock prices of the “X” companies fell. The steepest drop was at OGX Petróleo (-67.8%), followed by MMX Mineração (-33.1%), LLX Logística (-28.8%), MPX Energia (-9.3%) and OSX Naval (-7.4%). Ibovespa has retreated 5.8% in the first two months of the year. OSX lost 31.5% in the same period, followed by OGX (-28.1%), MMX (-24.9%), LLX (-16.7%) and MPX (-5.7%).
Here are some of the analysts opinion:
“OGX is seen as a company with cash problems and that depends too munch on the government, as much in operational authorizations as in loans.” – Espirito Santo bank.
“Risks are still too high, I talked with several geologists to better understand the company’s fields and concluded that oil extraction in the areas is challenging, leading to rising costs and production delays. The company only connected its third well in January, with a delay over the initial projection. It has been facing unexpected difficulties.” – Deutsche Bank
“MMX was heavily criticized in our meetings (of our contacts, nobody seems to have invested in the shares), especially because of significant concerns about project execution, management changes and negative news surrounding the ‘X’ companies.” – HSBC