Why Noble's earnings are predicted to bottom out next quarter

Is this about losses?

According to DBS, Noble’s earnings are set to bottom out next quarter in the absence of Agriculture and Yancoal losses.

The Brazilian sugar mills are seeing improved efficiencies as they ramp up volumes, and for the crushing business, China operations saw an improvement with some production discipline seen.

Here's more from DBS:

In addition, the recent Santos fire, which pushed up sugar prices from 16-17 UScents/pound to 18-20 UScents/pound helped Noble.

Noble’s 3Q13 headline net profit plunged 55% y-o-y to US$30m (excl. US$7.1m loss on supply chain asset) despite a 13% increase in revenue.

Excluding losses of over US$90m from Yancoal, core profit would have been c.US$120m, a strong rebound from US$77m in 2Q13.

We highlight that the Agriculture segment reported operating profit of US$14m after two consecutive quarters of losses on the back of operational improvements in crushing plants and sugar mills. Group operating margins showed a slight 0.1ppt improvement to 1.5%.

Also Read

Olam Agri will not extend Namoi Cotton takeover offer

China Shenshan Orchard names Ngo Yit Sung as independent director

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit