Noble falls deeper into the red with US$1.75b Q2 loss

Xavier Trudeau
Août 13, 2017

Commodities trader Noble Group Ltd reported a quarterly loss of $1.75 billion, its biggest in 1-1/2 years that it had flagged last month, and said it would use funds raised from asset sales to cut debt.

The company also suffered exceptional losses due to volatile coal prices that upended its hedging bets on the commodity.

Revenue slipped 19 per cent to US$10.1 billion, in line with lower trading volumes.

"The operating environment continues to be hard", Noble said, adding that market and lender reaction to its weak first quarter results led to challenges in managing and supporting its supply chain and hedging activities.

STRUGGLING commodity trader Noble Group, hit by trading losses in its oil liquids business and impairment charges, fell deeper into the red with a second-quarter net loss of US$1.75 billion, compared to a net loss of US$54.9 million in the year-ago period. Noble also faces challenges in bolstering the confidence of its lenders, suppliers, customers and other counterparties.

"The group believes that the steps now being taken are setting the group on the path to recovery and provide a clear view of its direction and plans to address its challenges", said Noble in a press release.

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