Battered Noble hits back at anonymous detractors

“We did not mislead the market in any way,” asserts Noble.

Noble Group has issued a lengthy retort against Iceberg Research’s damaging allegations of accounting fraud.

The statement comes after two days of sell-offs which has wiped over US$1 billion off the commodities giant’s market cap.

Noble pointed out that Iceberg’s anonymity dents its credibility. Iceberg’s report did not name any authors, while its website did not carry an address or formal contact details.

“No attempt was made by Iceberg to air their concerns with the management of the Group prior to publication. If their intention, as claimed in the report, was to highlight supposed deficiencies in our accounting principles for the benefit of investors, it would have been normal to approach the Group to discuss their concerns, rather than publishing a report of this kind shortly before our annual results announcement and just before a holiday period,” stated Noble.

Noble asserted that it reports its results in accordance with International Financial Reporting Standards, and that the annual financial statements for 2013 and prior years have been audited by Ernst & Young who issued unqualified opinions.

The group also responded to Iceberg’s allegations regarding concealed impairments at Yancoal, Noble’s Australian associate.

“The reasons why the Group categorizes investments such as Yancoal and others as associates have been clearly disclosed in our annual reports. Supporting factors include board representation, material transactions between the Group and the investee (such as substantial offtake agreements) as well as the provision of essential technical information. Yancoal and the Group maintain regular dialogue on potential partnership activities,” Noble stated.

Noble further reiterated that the US$1.5 billion disposal of its 51% stake in Noble Agri Limited (NAL) allowed its gearing to fall to the lowest that it has ever been in its recent history.

“Contrary to Iceberg's allegations, we did not mislead the market in any way about the performance of NAL. It is incorrect and grossly misleading to imply the book value of NAL based on our reported re-measurement gain arising from the Group's remaining 49% stake in NAL. The gain on disposal and the re-measurement gain need to take into account the transaction costs, accrued costs borne by the Group during the transitional period, as well as the Group's reserve adjustments in relation to NAL,” the group stressed.

Noble’s response to Iceberg’s allegations about its palm plantations was that any future profits or losses incurred upon the sale of the palm assets will be shared equally between the Group and the COFCO led consortium of investors.

“In conclusion, contrary to the misleading allegations by Iceberg, it is business as usual in our palm plantations,” Noble noted.