Noble Q1 profit falls 62% on capital constraints

Singapore

NOBLE Group's earnings slumped 62 per cent in the first quarter as it placed priority on liquidity over profitability, leading to constrained business operations.

And even as it announced on Thursday the successful close of two credit facilities amounting to US$3 billion, a significant drop in trade payables, or the amount it owes to suppliers, as a result of tighter bank lines in the quarter raised concern among analysts.

The largest commodity trader in Asia recorded a net profit of US$40.5 million for the three months ended March 31, down from US$106.6 million a year ago. Revenue fell 32 per cent to US$11.4 billion.

Its metals and mining business, which had been in the red for three quarters, returned to profitability. The division's profit before interest and tax, however, i…