April-2018 Performance Report of Noble Group:
Singapore Exchange’s regulatory arm on Thursday asked Noble Group’s senior creditors to assess the beleaguered commodity trader’s restructuring plans to “ensure parity in the treatment of all shareholders”.
The Singapore-listed trader is seeking a $3.4 billion debt restructuring which is critical for its survival. While it has the support of senior creditors holding 55 percent of its debt for the restructuring deal, it is still short of the required 75 percent amid opposition from some bondholders and shareholders.
Once Asia’s largest commodity trader, Hong Kong-headquartered Noble was plunged into crisis in February 2015 when Iceberg Research questioned its books. Noble has stood by its accounting.
The Board of Directors of Noble Group Limited (the ‘Company’, and together with its subsidiaries, the ‘Group’) announces that the Company has not paid the coupon due 9 March 2018 with respect to the US$750 million notes due 9 March 2022 (the ‘2022 Notes’).
In accordance with the terms of the 2022 Notes, the Company has availed itself of a 30-day grace period. In reaching its decision not to pay the coupon, the Board consulted extensively with an ad hoc group of the Group’s senior creditors (the ‘Ad Hoc Group’) and took into consideration advice received from the Group’s legal and financial advisors.
Commodities trader Noble Group revealed a loss of nearly $5bn (£3.6bn) for 2017 yesterday in what analysts have said is possibly the biggest loss made by a Singapore-listed company.
The firm said it will focus on a debt restructuring after it tumbled to a loss of $4.9bn for 2017 compared with a profit of $8.7m the previous year due to a hit from non-cash losses on its derivatives contracts.
The group said the board was “satisfied that the group can continue as a going concern” until the $3.4bn debt-for-equity plan creates a sustainable capital structure for the troubled trader.
Currently, its share price is 0.067 and it may rise soon.
Noble Group (SGX: N21) – a renowned Singapore-listed physical commodities trader is a market leading global supply chain manager of Energy, Metals and Carbon Steel material and Power and Gas products. But despite such a huge name in the commodity market, Noble group share prices have fallen by 62% in June 2016. As a result, they returned to a small profit of $8.2m last year.
With an aim to uncover all the hidden facts and to analyze the latest trend. here, in this quick hit referral guide, I am going to answer you with some of the most valuable questions about Noble Group. Which ultimately let you with the clear-cut vision about your investment strategy for Noble.
From the past few years since 2002 when the company got included in Fortune 500. Noble group shares had been considered as a blue-chip stock. But last year in 2016 CapitaLand Commercial Trust replaced Noble stocks from Straits Times Index. Losing up with its blue-chip label Noble group share prices suffers a lot.
Acc to many renowned market analyst – The reason behind is the sudden resignation of their former CEO Yusuf Alireza. It may be one of the profound managerial reason But what I think the reason behind for this sudden fall is-
Well, if we draw our attention at these facts, we ourselves will conclude the above statement. Noble group share prices which are continuously showing a downtrend from 2010 trading at its lowest price of S$2.10 in 2012 and S$1.55 in 2013. This downfall has taken a giant form in 2016 when Noble group quarterly revenue was cut down by 32% year-on-year to US$11.4 billion, as a result, its profit attributable to shareholders had plunged by 62% to US$40.5 million.
Looking closer at the company’s track record in generating cash flow. We can find that from 2010 to 2015, Noble Group Limited has generated negative operating cash flow in this three years. Meanwhile, in 2016 the company’s business churned out a negative US$486 million in operating cash flow.
So it can be said that “Cheap rubbish is still rubbish” that is no matter for how long Noble is trading low and for how long it will trade low, what matter is Noble Group is still trading at its lowest and is continuously showing a downtrend.
So why to trade for an all-time low trading stock? Right or not?
According to Noble Group latest news release, 2016 was a year for them where they have made significant strides in forming a solid foundation for their future development. They have strengthened their capital base by US$ 500 million exceeded from their targeted rising of US$4 billion with the sale of Noble Americas Energy Solutions (NES) in dec 2016. Along with the rise in capital base, Noble Group has also reduced their Debt, lowered their gearing and increased liquidity by US$ 2billion.
Joint CEOs, Will Randall and Jeff Frase commented “Although we have more work to do, we look forward to 2017 with confidence, as we complete the repositioning of the Group. With strong roots in Asia, we believe we retain a unique capability to service energy and industrial commodity demand in the emerging markets, where we see rising demand for raw materials accompanied by an increasing flow of refined and processed products.”
I hope the discussed question will definitely let you form a clear vision of what to do with the Noble Group and how to deal with the Noble Group Share Prices to book a remarkable commodity profit. For all the latest Noble stock news Follow us www.mmfsolutions.sg
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