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Noble swings into Q3 loss of US$28.11m
NOBLE Group swung into a net loss of US$28.11 million for the third quarter ended Sept 30, from a net profit of US$24.68 million, as the commodities supply chain company continued to cease some of its businesses.
Revenue was 38 per cent lower at US$11.55 billion while there was a US$60.2 million loss from discontinuing businesses net of tax.
Explaining the performance, Noble said its 2016 results have been significantly impacted by its "conservative approach to liquidity management".
"Businesses continued to be constrained in the latest quarter and are operating well below optimal earnings' capacity. Business rationalisation continues in various parts of the group as we close, or curtail, certain activities to focus on our core franchises," the management said in a note.
But the group management pointed out that there is significant progress in its initiatives to raise capital and rationalise its business. It is also well on track to achieve its capital-raising target of US$2 billion, with the completion of the rights issue in August and the sale of Noble Americas Energy Solutions (NES) in October.
The sale of NES is on track to close in December, having received shareholder approval on Nov 3.
Shares of Noble jumped 12.6 per cent on active trade to 20.5 Singapore cents.