Noble Group results will be in the spotlight on Thursday as the commodities trader prepares to unveil a massive quarterly loss, hit by one-time charges.
Here are some of the key things to watch out for:
- Noble already issued a profit-warning last month, with the Singapore-listed firm guiding a range of $1.1 billion to $1.25 billion. The important thing to look at will be the liquidity headroom, that gives an indication of how much spare capital it has available to fund its business.
- Noble faces major debt repayments early next year amid concerns that its existing operations and resources are insufficient to service its $2.6 billion debt. Investors are anxious to know how Noble's negotiations with its lenders are progressing. S&P said last month that Noble remained at risk of defaulting within the next six months.
- The complex sale of Noble Americas Corp to Vitol will also be on the radar given sums parked in escrow and myriad clauses that need to be worked out.
- Is Noble planning to further sell its remaining business? Noble is largely left with Asian portfolio barring some assets in Mexico and an alumina refinery in Jamaica. For the third quarter, Noble Group has said it expects a net loss from continuing operations of $50 million to $100 million.
- Noble has said that after the oil-unit sale, headcount is expected to drop to about 400 from 1,050 at the start of the year. Are further job cuts on the line?
(With inputs from agencies)