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Noble to dispose marketing and offtake deal to Tricon Energy for US$10.1m
NOBLE Group on Monday said that it has agreed to dispose a marketing and offtake agreement for petrochemical products between a national petrochemicals company and itself, as well as certain loan-related contracts, to Tricon Energy for about US$10.1 million
The loss on the proposed disposal amounts to about US$6.8 million based on the book value of the assets as at end-September 2017 of about US$16.9 million.
Explaining the disposal, Noble said that the assets were previously included in its Global Oil Liquids business and Energy segment for reporting purposes, but following the conclusion of the monetisation of Noble's Global Oil Liquids and North American Gas and Power businesses, the group is focusing on its hard commodities, freight and LNG businesses instead to "solidify" its position as an industrial and energy products supply chain manager in the Asia-Pacific region.
"The assets are no longer considered to be part of Noble Group's core businesses. Noble Group's ongoing Asian Oil Products business continues to service clients in South and South-east Asia including Indonesia, the Philippines and Cambodia, amongst others, with gasoil, gasoline, jet fuel and other products," it said.
Net proceeds from the sale will be made available for general working capital purposes.
The disposal will also have an "immaterial" impact on the net tangible assets per share and the earnings per share of Noble, it said.