SINGAPORE May 11 Shares in Singapore-listed
Noble Group Ltd are set to fall after a profit warning
by the struggling commodity trader stoked worries that its
recovery from a deep restructuring could take longer than
The Hong Kong-headquartered company, which reports
first-quarter results after close of trading on Thursday, cited
a challenging operating environment in its profit warning on
Tuesday night and said it was caught out by movements in coal
The company has been seeking to rebuild investor confidence
after harsh setbacks two years ago, when a commodities downturn
and a questioning of its accounts by Iceberg Research triggered
a share price collapse, credit rating downgrades and a series of
writedowns and asset sales.
Noble, which has stood by its accounts, appointed two new
co-CEOs last year after its CEO quit. The company's shares are
still down about 85 percent from February 2015.
It warned of a net loss of about $130 million in the three
months ending March, the weakest result in more than two years
excluding a writedown of over a billion dollars reported in
Oct-Dec 2015, which led to big losses.
At its shareholder meeting in Singapore last month, some
shareholders cast doubt on Noble's prospects given its weak
share performance, but Chairman Richard Elman repeatedly said
the company had taken tough decisions and would begin to show a
recovery later this year.
Noble is now mainly focused on oil liquids and energy coal
businesses, and is cutting debt and taking steps to improve
(Reporting by Anshuman Daga; Editing by Stephen Coates)