Despite some progress over the weekend to slow the flow of oil gushing into the Gulf of Mexico, BP is still struggling to find a meaningful bright spot since the Deepwater Horizon drilling rig exploded more than a month ago. The London-based oil and gas producer recently announced it won’t be until possibly August before crews can permanently stop what has become the biggest oil spill in U.S. history. (Fortune Nin-Hai Tseng, June 7, 2010)
The event has all the makings of a corporate nightmare: BP (BP) shares have plummeted. Lawsuits have already emerged. The U.S. government has launched criminal and civil investigations into the Gulf Coast oil spill. Its credit ratings have been cut. And the reputation that BP built as being an eco-friendly oil company has been severely tarnished, if not destroyed.
Well, the state of Florida has at least 189 million reasons why the state of Florida should be praying that BP doesn’t go bankrupt. According to Dennis MacKee of the State Board of Administration, the state has considerable investments in BP stock and debt — $189,401,313 worth of investments — although MacKee pointed out that the percentage of its investment that the state holds is relatively less than many other indices.
|Florida’s British Petroleum Holdings|
|As of May 31, 2010|
|Total as % of FRS + Chiles + CAMP-IE||0.17%|
|In Basis Points||17|
1.) Foreign Equities: UNDER weight 28 bp vs. Index
- [ie, BP of 68 bps vs. 96 bps in the Index (the Florida State Board ACWI ex US ex Iran/Sudan IMI)]
2.) Global Equities: OVER weight 98 bp vs. Index
- [ie, BP of 148 bps vs. 50 in the Index (the customized FSB MSCI ACWI ex Iran /Sudan IMI of 50bps)]