Search

IN FOCUS
AGRIBUSINESS | Staff Reporter, Singapore
Published: 20 Dec 12
1926 views


Noble Group profit surge pinned on China recovery in 2013: Maybank

"Significant turnaround in profitability".

Here's more from Maybank Kim Eng:

Most leveraged China economic activity. We see Noble as most leveraged to an improvement in China’s economic activity in 2013, especially industrial output. Excluding its oil & gas business, China is its single biggest market, which we estimate account for more than 30% of total group tonnage. Its importance as a commodity supplier is also likely a key consideration when China Investment Corp (CIC) took up a substantial stake in 2009.

Important supplier of coal, iron ore. While on-ground assets in China are quite light (limited to oilseed crushing and storage), Noble is one of the largest supplier of hard commodities such as coal and iron ore into China, sourced from other countries. Improved demand in 2013 could
mark a significant turnaround in profitability. 

Diversified portfolio is more resilient. Noble has a business and asset footprint across the world, and is involved from energy to soft commodities. We believe this should allow them better opportunities to deploy capital profitably. Its earnings over the past twelve months have also been generated through lower VARs (0.52% in 3Q12), which may imply upside if 2013 turns out to be a conducive year for commodities demand.

Improving balance sheet strength. Amongst its peers, we believe Noble has the most robust balance sheet and debt structure in our opinion. We estimate net- net-debt/ equity will go down from 87% to 80% (adjusted net-debt/ equity from 35% to 28%) if we account for the expected cash proceeds from the Yanzhou-Gloucester deal in January 2013. Furthermore, the debt-structure is also long-term in nature, with Noble holding investment grade ratings from S&P, Moody’s and Fitch (BBB- negative watch).

Given the difficult environment in 2012 for some of its key products and low VAR deployed, we believe profitability is likely not far from structural bottom.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Noble Group, China recovery 2013, commodities

LATEST AGRIBUSINESS JOBS »
  • No jobs posted on this category.
    PRINT ISSUE »

    Subscribe Now
    What factors are keeping expats rooted in Singapore?

    1265 views

    What factors are keeping expats rooted in Singapore?

    623 views

    Can Asian private equity outgrow the west?

    292 views

    MOST READ EXCLUSIVES

    The 10 richest Singaporeans

    The 10 richest Singaporeans

    Altogether, their total amount of wealth dropped by 20% to US$32.5 billion.

    by KRISANA GALLEZO
    13 Apr 2015 | 110522 views
     

    16 items that are a tad cheaper in Singapore than in Hong Kong

    16 items that are a tad cheaper in Singapore than in Hong Kong

    Coffee lovers need not go farther for a cheaper cup of cappuccino.

    by KRISANA GALLEZO
    20 Mar 2015 | 105686 views

    Check out P&G Singapore’s new office with outdoor working spaces

    Check out P&G Singapore’s new office with outdoor working spaces

    It occupies 6 contiguous floors within The Metropolis.

    by LEE ANNE BABIERRA
    30 Apr 2015 | 21264 views
     

    Singapore’s 8 hottest 40 and under hotel chefs

    Singapore’s 8 hottest 40 and under hotel chefs

    Check out and be inspired from their humble beginnings before rising the ranks.

    by KRISANA GALLEZO
    27 Mar 2015 | 14520 views

    Chow Tai Fook opens second store in Singapore

    Chow Tai Fook opens second store in Singapore

    It's a 1,000-square feet new jewellery shop on Orchard Road.

    by KRISANA GALLEZO
    26 Feb 2015 | 13067 views
     

    This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

    This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

    Find out what the three key platforms of CRIB are.

    by KRISANA GALLEZO
    10 Mar 2015 | 8806 views

    The New Black hits Singapore with rarest green coffee

    The New Black hits Singapore with rarest green coffee

    It also boasts of its Impossible Collection curated by the ‘world’s rockstar roasters'.

    by KRISANA GALLEZO
    5 Mar 2015 | 5493 views
     

    All the single ladies: Here’s Singapore’s first female-centric dating app for you

    All the single ladies: Here’s Singapore’s first female-centric dating app for you

    Its female-friendly features help women find serious daters.

    by LEE ANNE BABIERRA
    20 Apr 2015 | 5361 views

    Get to know the husband-and-wife duo behind the novice 3E Accounting

    Get to know the husband-and-wife duo behind the novice 3E Accounting

    This local accounting firm expanded from 2 to 35 members in just 4 years.

    by KRISANA GALLEZO
    24 Apr 2015 | 5193 views
     

    Take a sneak peek at Equinix’s $300m international business exchange data centre in Singapore

    Take a sneak peek at Equinix’s $300m international business exchange data centre in Singapore

    Which took almost a decade to finish.

    by KRISANA GALLEZO
    27 Apr 2015 | 3740 views

    Want to be hands-on with your ideal home setting?

    Want to be hands-on with your ideal home setting?

    Commune is opening an Experience Centre for meticulous homeowners.

    by KRISANA GALLEZO
    23 Mar 2015 | 3342 views
     

    Office in the sky: How’s having a meeting in the clouds?

    Office in the sky: How’s having a meeting in the clouds?

    Check out ACL Asia Pacific’s Cumulonimbus, Altostratus and Cirrus rooms.

    by KRISANA GALLEZO
    1 Apr 2015 | 3290 views

    Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

    Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

    Find out what other goals the 27-year-old has for the company.

    by KRISANA GALLEZO
    27 Mar 2015 | 3200 views
     

    LawCanvas saves the day: Easy legal documents in under a minute

    LawCanvas saves the day: Easy legal documents in under a minute

    The founders revolutionized the legal industry despite having different backgrounds.

    by KRISANA GALLEZO
    2 Mar 2015 | 2845 views

    Take a look inside INSEAD’s $55m leadership development centre in Singapore

    Take a look inside INSEAD’s $55m leadership development centre in Singapore

    It marks the fulfillment of a vision too ambitious to achieve 15 years ago.

    by KRISANA GALLEZO
    1 Apr 2015 | 2740 views
     

    Le Petit Paradis recently rebranded as Enoch’s European

    Le Petit Paradis recently rebranded as Enoch’s European

    It’s a full-fledged contemporary European restaurant blossomed from a motorcycle accident.

    by KRISANA GALLEZO
    22 Apr 2015 | 1472 views

    #OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

    #OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

    Rags to riches stories are fabulous, but here’s the real deal.

    by KRISANA GALLEZO
    27 Mar 2015 | 1286 views
     

    Find out what it’s like going into business with your in-law

    Find out what it’s like going into business with your in-law

    A young entrepreneur teamed up with his father-in-law to redefine home entertainment needs.

    by KRISANA GALLEZO
    27 Mar 2015 | 1082 views

    What is the future of the sports business in Singapore?

    What is the future of the sports business in Singapore?

    Can a new billion-dollar stadium give Singapore the edge it needs to compete for world-class sporting events?

    by STAFF REPORTER
    20 Mar 2015 | 893 views
     

    Fragrance Du Bois to launch a new scent this year

    Fragrance Du Bois to launch a new scent this year

    Also, check out its pop-up boutique at TANGS Orchard open until April 26.

    by KRISANA GALLEZO
    17 Apr 2015 | 853 views

    This bold ad film tells you what happens when maids are not given their due day off

    This bold ad film tells you what happens when maids are not given their due day off

    ‘Mums & Maids’ generated 5 million views in 5 days.

    by KRISANA GALLEZO
    7 May 2015 | 737 views
     

    HAITE Group launches its first aviation training center in Singapore

    HAITE Group launches its first aviation training center in Singapore

    It is the first major investment by a Chinese aerospace firm.

    by KRISANA GALLEZO
    13 May 2015 | 732 views

    Megafash sets the stage for local entrepreneurs to introduce indie brands

    Megafash sets the stage for local entrepreneurs to introduce indie brands

    It plans to expand in Malaysia and Indonesia.

    by KRISANA GALLEZO
    20 Apr 2015 | 586 views
     

    Singapore retailers turn to technology to boost productivity

    Singapore retailers turn to technology to boost productivity

    Shopping for the first child is always challenging for the parents.

    by STAFF REPORTER
    15 May 2015 | 564 views
    close Don't Show Again

    STAY INFORMED! Get our free weekly newsletter