Hong-Kong based commodity conglomerate Noble Group Ltd. warned that it would post a loss for the 4Q’15 and FY’15 period after facing a $1.2bn non-cash impairment and exceptional charge. Additionally, the company faced a loss on the sale of its subsidiary Noble Agri Ltd.
Noble warned that commodity prices, especially that of thermal coal would continue to remain subdued in the near-term.
The company’s management adopted a conservative price of thermal coal of $55 per tonne to ensure its portfolio cushions itself against lower prices in future. However, prices continue to hover around 2006 lows of $47 per tonne at Newcastle, Australia, an Asian benchmark for thermal coal, for the week ended 22 January.
Lower commodity prices over 2015 have dragged the company’s share prices down over 65% and its credit ratings have been downgraded to junk.