May 10, 2017 / 2:34 AM / 5 months ago

Singapore's Noble flags $130 million loss in first quarter

The company logo of Noble Group is seen at its headquarters in Hong Kong March 23, 2015. REUTERS/Bobby Yip/File Photo

SINGAPORE (Reuters) - Singapore-listed commodities trader Noble Group Ltd (NOBG.SI) warned on Tuesday that it was likely to report a net loss of about $130 million for its first quarter.

The company said its operating environment remained challenging and was “made worse by dislocation in the coal markets during the quarter causing the decoupling of the prices of key indices” and other trading issues.

It has taken measures to realign its portfolio to prevent a repeat of similar adverse events, Noble said in a statement late on Tuesday. It is due to report its first-quarter results on Thursday.

The Hong Kong-headquartered company, which has restructured its business operations, has been seeking to cut debt and boost liquidity.

Noble said on Tuesday it had made significant progress in implementing previously announced cost cutting initiatives.

Its shares are down about 85 percent since mid-Feb 2015 when its troubles started after its accounts were questioned by Iceberg Research.

This sparked a dramatic collapse in its share price and stoked ratings agency downgrades, forcing a sale of its assets and a fund raising to allay financing worries in a brutal commodities market. Noble has stood by its accounts.

Reporting by Aradhana Aravindan; Editing by Richard Pullin

Our Standards:The Thomson Reuters Trust Principles.
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