Brazilian billionaire Eike Batista is no longer one of the world’s 100 richest people.
The over-hyped billionaire’s fall from the ranking comes as OGX Petroleo & Gas Participacoes SA, the centerpiece of Batista’s empire of interlinking commodity startups, has lost more than three quarters of its market value in the past 12 months after delivering a series of production disappointments. So far this year, the company has disclosed a drop in output at its main field and reported a dry hole at one of its wells.
“He has not executed but, to my mind, that’s because he had too much on his plate,” said asset manager Ian McCall from Quesnell Capital.
Batista was Brazil’s wealthiest individual when his wealth peaked at $34.5 billion in March last year (now it’s at about US$10 billion). In an interview with Bloomberg News that month, he called himself the exemplar of a new “Brazilian dream” of entrepreneurial success, and said he would overtake Carlos Slim as the world’s No. 1 by 2015. After he repeatedly failed to meet goals and timetables for his six publicly traded companies, a sell-off erupted in June when OGX reported lower-than-expected production.