Solaron's Case Study on OGX

1. Solaron warns of major governance failings
18 months before company fined for
anti-trust practices
OGX Petróleo e Gás
Participações S.A.

2. OGXPETRÓLEOEGÁSPARTICIPAÇÕESS.A.
OGX is a Brazilian publicly listed oil and gas company and was Brazil’s
second largest oil company by market value.
During 2013 OGX was the subject of multiple anti-trust investigations
and fined by Brazilian regulators for gun-jumping. OGX filed for
bankruptcy protection in October 2013.
In January 2012 Solaron’s research revealed significant governance risks
at OGX, including:
• Misleading investors.
• Evidence of corruption and access to privileged information.
• Evidence of bribery and undue government influence to
win contracts.
January 2012 Solaron research indicates significant governance risks.
June 2012 OGX share value drops 45% due to missed
guidance targets.
July 2013 OGX subject of multiple anti-trust investigations and
fined BRL 3m.
September 2013 OGX’s share value has dropped 95% since October 2010.
October 2013 OGX files for bankruptcy protection.