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COMMODITY trader Noble Group on Tuesday warned that it will incur net losses for its fourth quarter and full year ended Dec 31, 2015.
This is due to a US$1.2 billion impairment hit, on top of losses recognised from the recent sale of joint venture Noble Agri.
The non-cash impairments and adjustments were due to assumptions - which Noble said was not in its base case - that coal prices will remain at lower levels for an extended period.
A conservative price of US$55 per tonne of thermal coal has been adopted, US$14 per tonne below the average market consensus price, Noble said. A similar process was undertaken for metallurgical coal.
Net asset value per share at end-2015 including these adjustments, and with Noble Americas Energy Solutions carried at cost, remains "in excess of S$0.70 a share", Noble said. This is down from net asset value of US$0.78 a share at end-September 2015.
Noble's share price has been rebounding in the past month from a low of S$0.265. It closed at S$0.37 on Monday.