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Noble falls deeper into the red with US$1.75b Q2 loss
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.
Revenue slipped 19 per cent to US$10.1 billion, in line with lower trading volumes. This resulted in the group recording an operating loss from supply chains of US$1.5 billion, compared with a profit of US$176.5 million a year ago.
The operating environment has continued to be challenging for the group in the second quarter, due to reasons relating to the commodities sector and also those specific to the group, said Noble. It had earlier warned of a possible loss of as much as US$1.8 billion for the second quarter.
"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.
"The group's objective is to maximise value for the benefit of the group's stakeholders and to best position the company for the challenges and opportunities facing the commodities trading industry."