Search

IN FOCUS
AGRIBUSINESS | Staff Reporter, Singapore
Published: 20 Dec 12
1890 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

CO-WRITTEN ARTICLES & SPONSOR CONTENT ››

Here's why Concorde Hotel Singapore and Putrajaya International Convention Centre lead the way in technology and building efficiency.
276 views

LATEST AGRIBUSINESS JOBS »
PRINT ISSUE »

Subscribe Now
Trains, planes, automobiles and drones

215 views

As goes Hong Kong, so goes Singapore?

1766 views

Office property shows no signs of a slowdown

522 views

MOST READ EXCLUSIVES

Singapore's 12 most influential business professors under 40

Singapore\'s 12 most influential business professors under 40

The youngest is aged 34.

by KRISANA GALLEZO
23 Oct 2014 | 69946 views
 

11 craziest credit card purchases in Singapore

11 craziest credit card purchases in Singapore

Find out if each is worth the outlay.

by KRISANA GALLEZO
22 Sep 2014 | 49358 views

Singapore’s 7 hot new restaurants in September

Singapore’s 7 hot new restaurants in September

Have you checked out a very secretive cafe at 48 ¾ Niven Road?

by KRISANA GALLEZO
6 Oct 2014 | 26131 views
 

Check out General Motors’ new HQ in Singapore

Check out General Motors’ new HQ in Singapore

A ‘hot desks’ rule is implemented in the new office.

by KRISANA GALLEZO
3 Oct 2014 | 12133 views

Singapore’s 10 favorite meals on wheels

Singapore’s 10 favorite meals on wheels

You better cut the pizza: An Italian dish bagged the number 1 spot.

by KRISANA GALLEZO
17 Oct 2014 | 11736 views
 

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

The restaurant’s construction cost over a million dollars.

by KRISANA GALLEZO
3 Nov 2014 | 7061 views

Get ready to work and play at Spotify’s regional office

Get ready to work and play at Spotify’s regional office

All the furniture except the bean bags were imported from Sweden.

by KRISANA GALLEZO
23 Sep 2014 | 5164 views
 

Opera Estate welcomes a little bar simply called ‘Slake’

Opera Estate welcomes a little bar simply called ‘Slake’

It wants to be your living/dining room outside of home.

by KRISANA GALLEZO
25 Sep 2014 | 4593 views

The new Acronis HQ will make you feel like ‘walking into blue space’

The new Acronis HQ will make you feel like ‘walking into blue space’

Also, check out photos of its 7-eleven-like pantry amenities.

by KRISANA GALLEZO
28 Oct 2014 | 4325 views
 

Sofitel in Sentosa launches world's largest So SPA

Sofitel in Sentosa launches world\'s largest So SPA

Future plans are finally revealed.

by KRISANA GALLEZO
22 Oct 2014 | 3897 views

Will you take up the challenge to live on $5 a day and share the experience?

Will you take up the challenge to live on $5 a day and share the experience?

This campaign already generated over 8,000 followers on Facebook.

by KRISANA GALLEZO
23 Sep 2014 | 3085 views
 

Want to know a ‘smart’ way to have your clothes washed?

Want to know a ‘smart’ way to have your clothes washed?

My Laundry Box introduces a smart laundry locker platform that works with an app.

by KRISANA GALLEZO
17 Oct 2014 | 3048 views

Could this be the most intelligent phonebook app yet?

Could this be the most intelligent phonebook app yet?

It’s self-updating and removes duplicates for worry-free contacts storage.

by KRISANA GALLEZO
29 Sep 2014 | 2993 views
 

Arete Culture opens first store in Lam Soon Building

Arete Culture opens first store in Lam Soon Building

It's a one-stop shop for your quirky interior decors.

by KRISANA GALLEZO
24 Sep 2014 | 2919 views

Do you want to build your own bike?

Do you want to build your own bike?

This store allows owners to creatively piece bike parts on their own.

by KRISANA GALLEZO
28 Oct 2014 | 2258 views
 

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

See how a radio DJ pursued his love for food.

by KRISANA GALLEZO
20 Oct 2014 | 1881 views

This device is making a statement that hand-waving gestures are not usable

This device is making a statement that hand-waving gestures are not usable

It's a creation by 3 young computer wizards from Singapore.

by KRISANA GALLEZO
25 Sep 2014 | 1107 views
 

World Cup 2014 might have ended but this anti-gambling campaign is far from over

World Cup 2014 might have ended but this anti-gambling campaign is far from over

Many suggested to put it down amidst criticism, but Goodfellas cannot be stunned.

by KRISANA GALLEZO
15 Oct 2014 | 1100 views

Singapore Business Review opens nominations for 2014 class of 40 and under

Singapore Business Review opens nominations for 2014 class of 40 and under

Help someone get recognition for his or her excellence.

by KRISANA GALLEZO
17 Sep 2014 | 959 views
 

Now, hear this: You won't believe what your ears are seeing

Now, hear this: You won\'t believe what your ears are seeing

Ubersnap lets you upload photos with background music.

by KRISANA GALLEZO
2 Oct 2014 | 842 views

Kungfumath wants to revamp boring e-learning portals

Kungfumath wants to revamp boring e-learning portals

“Play with numbers” in its literal sense.

by KRISANA GALLEZO
5 Dec 2014 | 620 views
 

Inverted Edge gives spotlight to all independent contemporary fashion designers

Inverted Edge gives spotlight to all independent contemporary fashion designers

The homegrown startup has raised US$1.6M total funding in two years.

by KRISANA GALLEZO
3 Nov 2014 | 550 views
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter