Noble Group Plunges on Profit Warning as Coupon Payment in Focus
- Trader faces significant debt maturities over the next year
- Shares slump 49% in Singapore as bonds trade near record low
Noble Plunges After Profit Warning
Noble Group Ltd. plummeted in Singapore after the embattled commodity trader warned of a quarterly loss of as much as $1.8 billion and announced more asset sales, with S&P Global Ratings saying the disposals may not be enough and investors zeroing in on a bond coupon due on Saturday.
The shares sank as much as 49 percent, while the bonds due in 2020 held near a record low, as the Hong Kong-based company abandoned its ambitions in global commodities trading with the sale of its gas-and-power unit, and planned disposal of its oil-liquids business. The sale proceeds may not be sufficient to mitigate underlying losses and offset less favorable access to credit lines, according to S&P’s Danny Huang, director of corporate ratings.