, Singapore

Noble Group still in a good spot despite recent troubles

Balance sheet leverage at record lows.

Noble Group is still in a good spot despite the its recent share price crash, a report by Barclays stated today.

Barclays noted that the steep decline in the group's share price might be a long-term positive because it "forces greater financial transparency".

"Noble Group is in a much better spot than a couple of years ago, having disposed of its loss-making agri business and reduced balance sheet leverage to lows not seen in over a decade. ROEs in 2015 are at the cusp of reversing the declining trend since 2010 in our opinion; building upon the strong volume growth and margins in 2014," Barclays noted.

“We believe that increased transparency could be augmented with a formal framework on guidance, which could then be used by investors to benchmark performance,” the report added.


 

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