Noble Group profit doubles on Gloucester Coal acquisition

Friday, 14 Aug 2009

Noble Group, the global supply chain manager of agricultural; metals, minerals and ores and energy products as well as logistics services, announced that it handled a record 93 million tonnes of products in the first half of 2009 an increase of 19% YoY while generating revenue of USD 13.3 billion.

Noble Group gross profit for the H1 of 2009 was USD 491 million with a gross profit margin of 3.7%. Notably, the agricultural segment reported a gross profit of USD 224 million a near record level for a six month period. Its net profit of USD 339 million for the first half of 2009 was the highest six month total in Group history. The second quarter profit of USD 249 million, after incorporating the one-off gain associated with the acquisition of Gloucester Coal, was also a record.

Excluding this gain, net profit for the second quarter was USD 95 million, in comparison with USD 90 million in the first quarter 2009. The Group’s net profit margin, after adjusting for one off gains in the comparable periods, rose to 1.4% in the first half of 2009 as compared to 1.2% in the first half of 2008.

Mr David Eldon chairman of Noble said that “In what remained a difficult economic environment Noble’s first half performance represents a very solid result. We have been particularly encouraged by the fact that our net profit margins widened as our pipeline strategy gains traction. We have every confidence that Noble will benefit as the global economy starts to regain some poise. Indeed, the increase in inventory that our balance sheet showed at the end of June has frequently been a precursor of improving conditions ahead. In addition to which, the significant new capacity that will be contributing to our growth over the next year or two underpins our sense of cautious optimism”.

Mr Eldon added that “This quarter was particularly noteworthy as Noble was able to successfully conclude the acquisition of Gloucester Coal. We welcome the Gloucester employees and stakeholders to Noble who now join our energy segment, Noble’s largest revenue and tonnage contributor, as part of our rapidly expanding Coal and Coke Division. This acquisition reflects Noble’s strategy to expand its Australian coal assets and we look forward to working with Gloucester Coal to enhance their shareholder value.”