Companies & Funds Hit with Libya Exposure (ACM, E, EWI, OXY, RDS-A, BP, PBR, AFK, EGPT, TUR, EIS)
Another week, another North African country on fire. As you would expect, many large American and European companies do business in these nations. Libya has followed turmoil in Egypt and Bahrain and we wanted to see how the violence and unrest is impacting these companies now that the market is open. Libya produces around 1.5 million barrels per day, and that which is exported mostly goes to Europe.
AECOM Technology Corporation (NYSE: ACM) had what was roughly a $500 million contract over five years building Libyan infrastructure projects, much of which has apparently already been received. Shares are down 5.6% at $28.19, so this is more heavily impacting than some might have considered.
Eni SpA (NYSE: E), the Italian energy company, is removing its foreign personnel with 10% of its natural gas supplies in Libya and much more throughout North Africa. ADRs are down 5.4% at $47.55. As Italy has larger exposure than many to Libya, the iShares MSCI Italy Index ETF (NYSE: EWI) is down 4.2% at $18.13 due to its 18% exposure to ENI.
Occidental Petroleum Corporation (NYSE: OXY) is lower as a result of its operations there and shares are down 1% at $106.35. Royal Dutch Shell (NYSE: RDS-A) operates under permits and shares have recovered to being down only 0.2% at $70.85. BP plc (NYSE: BP) has deeper ties in Libya, although it is much more diversified, and its shares are back up to flat at $47.93 after opening down almost 1%.
Petroleo Brasileiro (NYSE: PBR), or Petrobras, has reportedly said that there were no indications yet that its operations in Libya have been affected. It operates an exploratory offshore block in the North African country and its operations are generally considered to be elsewhere. Petrobras shares (ADRs) are up 2.3% at $38.89.
There are also several ETFs and funds on the move, whether deserved or not. Market Vectors Africa Index ETF (NYSE: AFK) is getting hit this morning as it has 20% or so of its allocations in Egypt but nothing seen about Libya in the most recent fact sheet. Market Vectors Egypt Index ETF (NYSE: EGPT) appears to still be trading like a closed-end fund rather than an ETF and shares are actually up 1.4% at $18.99. Go figure. Elsewhere, iShares MSCI Turkey Invest Mkt Index (NYSE: TUR) is down 2.9% at $62.10. iShares MSCI Israel Cap Invest Market Index (NYSE: EIS) is down 2% at $57.75.
JON C. OGG