SGX-listed, Hong Kong-based Noble Group warned on Wednesday that it is set to post a devastating loss of USD1.8 billion for the second quarter. The shock loss surpassed the full-year loss of USD 1.6 billion back in 2015 and brought to light the significant challenges faced by the commodity trader.
The market reacted immediately on Thursday morning, with Noble Group share price plunging by as much as 49% to $0.295. The counter recovered to close at $0.395 at the end of the trading day.
The amount certainly blew me off and made me blinked twice. USD1.8 billion is a colossal amount of money. We are talking about losing USD1,800 million for one single quarter. Translated into Singapore dollar, that would mean SGD2,400 million. Make no mistake, founder Richard Elman has previously warned that Noble Group is likely to suffer losses until 2019. But nobody could have foreseen losses of such magnitude.
Compared to the second quarter loss, the first quarter loss of USD130 million seemed like peanuts. But the announcement of that loss back in March had bombed out Noble Group stock price. With the gigantic loss in second quarter, the share price is likely to experience another bout of carnage. In this regard, shareholders should brace themselves for another plunge in the shares in the coming weeks.
Based on the sickening financial results, fresh questions would be raised among investors on Noble Group’s management ability to revive the company’s fortune. Thus, of interest to many investors should be the outcome strategic review under the direction of the new Chairman Mr. Paul Brough. Broadly speaking, the plan[This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up …Read more