Noble Group warns of Q4 loss, $1.2 bln impairment on commodities slump

Asia's biggest commodities trader also says it has cut its long-term view on coal prices.

Commodities trader Noble Group has warned it could book a net loss for the fourth quarter as well as a $1.2 billon non-cash impairment due to a coal and commodity price slump.

The Singapore-listed firm, which trades commodities from coal to iron ore, said it expects a net loss for 2015.

"Management has determined that it is appropriate to adopt a conservative price of $55 per tonne for thermal coal, to ensure that the coal portfolio will be covered against a possible scenario of 'lower prices for longer'," Noble Group said in a statement to the Singapore stock exchange.

"This pricing is $14 per tonne below the average market consensus price."

Noble, which has been trying to shore up investor confidence after an accounting scandal, will post earnings on Thursday.

Noble Chief Executive Yusuf Alireza said the company has ample funds and that it will deliver $1 billion in further liquidity by March 2016, Reuters reported.

Low price sceario

The shares of Noble, one the world's largest traders of commodities, have lost nearly 70 percent following the accounting scandal. It was alleged that the company had inflated its assets by billions of dollars, a claim Noble rejected.

Asia's biggest commodities trader also said it has cut its long-term view on coal prices.

"There is a potential scenario, where coal prices will remain at these lower levels for an extended period and It is therefore prudent to reflect this view in the assumptions upon which the company's valuations are based," it said in a statement.