ENERGY & OFFSHORE, SHIPPING & MARINE | Staff Reporter, Singapore

Noble Group sinks deeper with $2.4b loss in Q2

It was hit by trading losses in its oil liquids business.

Noble Group takes a harder hit after its loss significantly widened YoY from $74.8m (US$54.9m) to $2.4b (US$1.75b) in Q2.

KGI said the company suffered from trading losses in its oil liquids segment and impairment charges.

Revenue also fell 19% from $17b ($US$12.5b) to $13.8b (US$10.1b). The group recorded an operating loss from supply chains of US$1.5b.

Noble said in a press release that the operating environment continues to be difficult, following the announcement of a loss for three months, along with challenges in the commodities' sector.

It also cited weak market and lender reaction as challenges in managing and supporting its supply chain, hedging activities, and increasing confidence within lenders, supplier, customers, and other counterparties.

"Conservative liquidity management, scaling back of risk positions and constraints placed on the Group’s access to trade finance lines led to disruption costs and prevented the Group from taking advantage of profitable opportunities," Noble said.

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