Noble Q1 profit down 30%

Singapore

WEIGHED down by lower commodity prices and underperformance of two of its "major operational associates", commodities trader Noble Group's net profit for the first quarter ended March 31 plunged 30 per cent to US$106.6 million, from US$152.3 million a year ago. But it was a turnaround from the net loss of US$220 million for the October-December 2014 quarter when it had to take a US$200 million impairment over Australian coal company Yancoal.

For Q1 2015, the group's revenue fell 7 per cent year-on-year to US$16.64 billion. Net profit margin stood at 0.64 per cent, down from 0.85 per cent a year ago. Hong Kong-based Noble said that despite an increase in the group's tonnage from 39.3 million tonnes a year ago to 65.8 million tonnes, turnover was down due to lower commodity prices. Its "two major operational associates", Yancoal and Noble Agri, had also underperformed, lowering group net income by about US$70 million for the quarter. Its more traditional China-related commodities such as iron ore, freight and coal continue to face significant headwinds, and sentiments in these sectors are at historic lows, while investments made in its oil, power & gas and metals franchise over the last few years continue to drive the growth in its bottom line.