May 16, 2006

Noble Group's Q1 2006 net profits fall 41 percent
 

Hong Kong-based Noble Group reported operating profits of US$53 million in Q1 2006, down 40.9 percent from US$89.7 million in Q1 2005, according to a financial highlights report the company released on May 11.

This operating profit (before working capital changes), however, is higher from the US$39.3 million in Q4 2005. "The level for Q1 2005 reflected the gains on disposal of certain long-term investments," explains out the global supply chain manager of agricultural, industrial and energy products.

Operating profits mainly consist of profit generated during the respective period, net of interest income and interest expenses.

For the quarter, the group's turnover also increased to US$2.79 billion, by US$250.4 million or 9.9 percent from the US$2.54 billion in Q1 2005; this is also a rise of US$160.3 million or 6.1 percent from US$2.63 billion in Q4 2005.

Noble attributed this increase to its energy and agriculture segments, which saw a combined 20.5-percent growth from Q4 2005 and a 36.7-percent increase year-on-year.

In particular, its agriculture segment reported an increase in turnover to US$831.9 million in the Q1 2006, up 21.6 percent from US$684.0 million in Q4 2005 and by 34.7 percent from US$617.5 million in Q1 2005.

"Several of our business divisions reported substantial revenue growth, reflecting a continuation of our origination and distribution operations expansion," the company shares. "Our grains division continued its strong tonnage growth, having benefited from the expansion of our supply chain origination activities and further market penetration, particularly in China, Europe and India."

Previously announced investments in a river port facility at Timbues in Argentina and a soybean crushing plant in China will contribute to incremental turnover growth in 2006, it added.