This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Noble Group’s third quarter losses slimmed from a year ago, as the commodity giant climbs out of the woods and looks to better days with its ongoing business restructuring and the less bad quarterly numbers.
Noble posted a US$99.0 million loss for the third quarter, improving from the US$1.2 billion net loss a year ago. Revenue was at US$1.2 billion, 16.4% lower than US$1.4 billion in the preceding year, due to a fall in sales from the metals minerals and ores segment, and the energy segment.
The group posted a profit of US$27.4 million before interest, tax, and restructuring expenses, a contrast compared to the US$60.7 million loss a year ago.
Operating income was at US$55.7 million, higher than the US$1.3 million a year ago. Year-to-date, operating income was at US$163.3 million, reversing from the operating loss of US$208.5 million in the preceding year.
Restructuring expenses for the quarter meanwhile, amounted to US$32.8 million.
Noble had earlier in October flagged that it will report a quarterly net loss of between US$90.0 million and US$115.0 million for the third quarter.
Noble Group’s restructuring plans
The group has been implementing a proposed restructuring for their troubled business. Noble said in the press statement that the business restructuring is expected to result in a sustainable capital structure.
Noble had previously assured investors saying that the constraints the company is facing are expected to be alleviated by the new trade finance facility once the restructuring completes.
The restructuring looks to provide for a committed trade finance and hedging facility which is critically important for the group, so that it can continue to trade and expand its presence as an industrial and energy products supply chain manager in Asia Pacific and the Middle East.
Commenting on the restructuring, Noble said: “The group continues to focus on completing the final phase of the proposed restructuring with a view to providing…a sustainable capital structure and a strong foundation from which to deliver long-term value for all its stakeholders.”
The group has seen its stock falling 133% year-to-date. On January 2, 2018, the stock was trading at 21.0 Singapore cents.
Investors responded positively to the less bad quarterly numbers, as Noble’s shares gained 2.25% to 9.1 Singapore cents on Wednesday mid-morning at 10.45am, Singapore time.
.jpg)
