Noble profit slipped 11% to US$304.9m

Looks like the US$100.3m gain from the Glouchester-Yancoal deal was a measly contribution.

According to OCBC Investment Research, Noble Group reported 1H12 revenue rising 19% to US$47,069.0m, driven by its Energy and MMO (Metals, Minerals and Ores) segments, although its Agricultural segment was impacted by high volatility and difficult weather conditions.

Here's more from OCBC:

Reported interim net profit though slipped 11% to US$304.9m, which included US$100.3m gain from the Glouchester-Yancoal deal and a tax credit of US$10.5m. Excluding these items and other one-off impairments, we estimate that core earnings would have come in around US$230.3m, or 40% of our FY12 forecast.

Although Noble saw a record tonnage of 107m in 1H12, up 9% over 1H11, operating margins were lower across the board, with MMO being the worst hit, falling to 0.8% in 2Q12 from 2.2% in 1Q12 and 1.6% in 2Q11; we suspect this could be due to weaker iron ore prices. Agriculture margin appears to be stabilizing around 1.2% and should improve in 2H12. Energy margin is holding well around 1.9%.

On its financial position, Noble notes that it currently has about US$6.2b worth of debt headroom, which management believes “eliminates any refinancing risk in the short and medium term”. It adds that it expects to receive some US$800m in 2H12 from the Gloucester-Yancoal merger and sale of a tank farm asset in Brazil. Noble further expects the market stress to provide it the opportunity to attract talent and invest in attractive assets to support its franchise.

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