Noble Group forecasts second-quarter net loss

Noble Group forecasts second-quarter net loss

SINGAPORE: Debt-laden commodities trader Noble Group said it expected to post a loss in the second quarter, citing restructuring expenses and net finance costs.

The company forecast a net loss of about US$115 million to US$140 million for the period. It expects to report restructuring expenses of about US$95 million along with net finance costs and tax of US$70 million to US$80 million for the quarter.

While operating income from supply chains improved in the quarter, Noble's performance continued to be hit by constraints on liquidity and availability of competitive trade finance to support its operations, along with the impact of restructuring expenses, it said.

Last month, the company won over a key shareholder with a sweetened equity offer for its US$3.4 billion debt restructuring plan that it sees as crucial to its survival. The company has sold billions of dollars of assets, taken hefty writedowns and cut hundreds of jobs over the past three years to slash debt.

On Thursday, it also said more than 86 per cent of its senior creditors supported the debt plan. The company said it would not be paying the coupon on its 2020 bond due on Jul 30.

Noble had reported a quarterly loss of US$1.75 billion in the year-ago period and had recorded a net loss of US$72 million in the first quarter of this year.

Source: Reuters/hs