Noble’s net profit plunged 82% to US$24.7m in Q3

Due to massive associate losses.

Embattled Noble Group reported a staggering 82% decline in its third-quarter net profit, dragged by hefty losses from associates as well as a substantial loss from supply chain assets.

In particular, Noble Agri continued to languish in the red following a further sharp decline in sugar and ethanol prices.

The group’s metals and mining segment also turned in a weak performance during the quarter, with the segment booking an earnings before tax loss of US$68.9m.

“The Mining & Metals Segment continued to show a significant drop in profitability. Both spot and forward pricing came under sustained pressure, and premiums across base metals continued to decline. This, as well as reduced working capital allocated to the Metals business, negatively impacted performance. In the short term, this capital has been reallocated to other businesses that generate higher rates of return,” the group said in its financial statement.

Weak global demand continued to weigh heavily on prices and premiums across the non-ferrous metals, including copper, zinc and lead, the company noted.

On the flip side, the group’s Energy segment continued to do well during the quarter, with shipments up 36% and EBIT up 416%, despite the 22% drop in revenue.