London 25/02/2016 - Noble Group recorded a net loss in 2015 of $1.672 billion against 2014's net profit of $132 million due to $1.9 billion of impairment losses, it said.
The Singapore-listed commodity trader's operating income fell to $1.17 billion, largely due to a swing to a loss in the mining and metals segment of its supply chain, it said in a release on Thursday.
Adjusting the year-end debt balance for readily marketable inventories and the pending payment of $750 million cash from the sale of its remaining stake in Noble Agri, its net debt would have been $1.5 billion, it added.
Noble is a global trading firm that partners with both producers and consumers. It sources bulk commodities from low-cost regions such as South America, South Africa, Australia and Indonesia and supplies high-growth demand markets, particularly in Asia and the Middle East.
Founded in 1987 and incorporated in Bermuda, it is listed in Singapore, with its headquarters in Hong Kong. It is more known for its agriculture and energy operations but also trades major metals and minerals and specialty materials such as tungsten and antimony.
Its share price has lost nearly 70 percent over the past year amid plunging commodity prices and liquidity concerns, which saw rating agencies downgrade its bond ratings to junk. The share price was around 33 cents late on Thursday.
"Now that the disposal of our remaining interest in Noble Agri has become wholly unconditional, our re-positioning initiatives are largely finished. We can now focus on building our core franchises across our existing portfolio," CEO Yusuf Alireza said.
Noble intends to revert back to its core strategy of being an asset-light physical merchant, diversifying away from a historical reliance on industrial commodities towards consumer-related commodities, it added. As well, it will develop a more balanced geographic footprint, with less reliance on China.
(Editing by Mark Shaw)