February 27, 2008

 

Noble Group's net profit rises 92 percent to US$258 million 

 

 

Net profit for commodities trading company Noble Group rose 92 percent last year to US$258 million while revenue for the year was up 71 percent to US$23.5 billion, a US$10-billion increase over 2006, according to a company press release.

 

Operating and net profits for 2007 were, respectively, US$306.8 million and US$258.1 million, an increase of 78 percent and 92 percent from their respective figure last year. Gross profit rose 69 percent from a year ago to US$824 million.

 

In a joint statement, David Eldon, Non-Executive Chairman and CEO Richard S. Elman said the Group's balance sheet remains strong, with cash balances standing at US$671 million and cash plus near-cash items (trade receivables and inventories) amounting to US$3.4 billion.

 

The return generated on average shareholders' equity for the year was 20.6 percent.

 

The statement stressed that Noble Group, unlike financial investors, was in the business for the long-haul

 

The statement also highlighted the fact that Fitch Ratings in January this year rated the company as ''Investment Grade,'' while Standard & Poor's at the same time upgraded the outlook on the company to ''Positive'' from ''Stable.''

 

In 2007, the company saw major contributions from all four of its key business segments (energy, agriculture, metals and ores, minerals). 

 

Last year, Noble moved into coal mining in Queenslan, Australia and received approval to build a port in Brazil. It also handled its first shipments of iron ore for mines in both Australia and Brazil

 

The Board of Directors has a dividend policy of a cash payout of 25 percent of net earnings each year. In addition to recommending this payout ratio, the Board will also be proposing a stock bonus in the ratio of 1 for 5, as a token of its appreciation of the support that shareholders have shown over the years, subject to shareholders approval.

 

Year 2007 also saw the inclusion of Dr. Ken Courtis to Noble's Board of Directors. Courtis was a Deputy Chairman of Goldman Sachs Asia for seven years, until 2006.

 

The company reiterated its pledge made last year to generate a 20-percent return on equity and double its earnings over the next five years.