Noble Group (CGP.SG) shares are being smashed this morning after the commodities trader issued a profit warning ahead of its March quarter results announcement later today.
Photographer: Nicky Loh/Bloomberg
Shares of the Singapore-listed, Hong Kong-based company fell 20% on Thursday morning to an almost 15-year low of SGD1.02 a share. Wednesday was a public holiday in Singapore for Vesak Day.
Noble warned on May 9 that it expects to make a loss of $130 million in the March quarter due to a misplaced bet on coal prices. Analysts surveyed by FactSet were expecting the company to turn a profit.
The Business Times’ Lynette Khoo reports it would be the company’s weakest result in more than two years. Khoo writes:
But Noble added that it did make significant progress in carrying out the cost reduction initiatives which were announced during the FY2016 results presentation in February, resulting in significant reduction of quarterly selling, administrative and operating expenses in the first quarter.
The company has been trying to restore investor confidence following attacks by little-known Iceberg Research on its allegedly aggressive accounting practices and after a commodities downturn triggered several downgrades by credit rating agencies, a share price collapse, and a series of writedowns and asset sales.
May 11, 2017 at 08:19AM
from Isabella Zhong
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