Noble posts US$1.75b loss, cites tough en­vi­ron­ment

New Straits Times - - Business -

SIN­GA­PORE: Com­modi­ties trader Noble Group re­ported a sec­ondquar­ter loss of US$1.75 bil­lion (RM7.5 bil­lion) yes­ter­day, weeks af­ter warn­ing it faced its steep­est quar­terly loss in a year-and-a half and would slash jobs and sell as­sets to cut debt.

“Con­ser­va­tive liq­uid­ity man­age­ment, scal­ing back of risk po­si­tions and con­straints placed on the group’s ac­cess to trade fi­nance lines led to dis­rup­tion costs and pre­vented the group from tak­ing ad­van­tage of prof­itable op­por­tu­ni­ties,” the Sin­ga­pore-listed com­pany said in a state­ment yes­ter­day.

Noble’s mar­ket value has plunged by about 95 per cent to US$340 mil­lion from US$6 bil­lion in Fe­bru­ary 2015, lead­ing to rat­ing agency down­grades, as­set sales and fund rais­ing to al­lay in­vestor wor­ries. Its stock is down 80 per cent in 2017.

In­clud­ing its first-quar­ter loss of US$130 mil­lion, Noble’s net loss for the six months to the end of June came to US$1.9 bil­lion which in­cluded US$1.3 bil­lion of write­downs re­lated to the reval­u­a­tion of some of its long-term com­mod­ity con­tracts. Its firsthalf loss last year was US$14 mil­lion.

Noble also said its net debt rose by US$945 mil­lion in the first half to US$3.8 bil­lion. Reuters

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.