Noble Group Holdings Limited (together with its subsidiaries the 'Company') refers to its Financial Year ended 31 December 2019 and the recent Coronavirus ('Covid-19') outbreak.
Trading Co Group - Financial Performance for the year ended 31 December 2019
The Company is in the process of finalizing its annual results for the year ended 31 December 2019. Based on the preliminary assessment by the Board of Directors ('Board') of the unaudited consolidated management accounts of Trading Co Group1 as at 31 December 2019, the Company provides the following update on anticipated results for the year ended 31 December 2019
Volumes in excess of 70 million tonnes
Operating income from supply chains in excess of $190 million
EBITDA in excess of $165 million
Year-end cash balance exceeding $400 million
Group cash in excess of $475 million
The Board notes that this update is based on the unaudited consolidated management accounts as at 31 December 2019, and such information has not yet been reviewed by the Audit Committee of the Company and is also subject to completion of the audit by the Company's independent auditors. The Company is targeting to release its 2019 Financial Results within the second half of April 2020.
The viral outbreak continues to adversely impact the markets in which our businesses operate. Whilst the full impact of Covid-19 is uncertain at this time due to the evolving situation, the Company expects that global supply chains will continue to be disrupted through Q3 of FY20. Accordingly, the Company is taking appropriate actions to address these challenges.
The Company has a mix of long term and short term contracts. Long term contracts continue to be performed in the normal course, quarterly contracts are being delayed, and short term / spot demand contracts are being converted to just in time delivery. The Company is working closely with its suppliers and customers to meet their demands in this uncertain environment.
Margins on the Company's long term contracts are expected to remain within historical ranges, albeit at the lower end, and assuming that supply chains in the markets in which the Company operates start to normalize during the second half of FY20, the Company expects that run-rate Operating Income from Supply Chains will return to FY19 levels. That notwithstanding, and due to the current uncertainty, the Company is currently assessing the potential downside financial implications with respect to FY20 financial performance and will provide a further update at the time of the release of its full year financial results.
The Company notes that it does not, and does not plan to, have or take any material speculative positions with respect to any of its commodities, including crude oil. The Company is also reviewing its FY19 SAO expenditure, particularly as it relates to cost remaining in the business as a result of the transition process post restructuring, with a view to reducing the same during FY20. The Company continues to assess long-term strategic opportunities, however, it is taking a cautious approach due to current market conditions.
About Noble Group Holdings Limited
Noble Group Holdings Limited ('Noble') is Asia's leading independent energy products and industrial raw materials supply chain manager. Noble Group Holdings Limited is the parent of the Noble group of companies which underwent a restructuring in the secondhalf of 2018 and which returned to profitability in the first-quarter of 2019. Noble operates in the supply chain of energy raw materials, technology metals, special ores and industrial minerals, and base metals, and is supported by its freight and logistics operations. It is rapidly moving into alternative energy and renewables-related businesses. Noble leverages its extensive regional network to facilitate the marketing, processing, financing and transportation of these raw materials, predominantly in Asia. It also provides supply chain and risk management services to clients. Noble Group Limited, the former holding company of the group (which was previously listed in Singapore) but which is now unrelated to Noble following the restructuring, is undergoing a winding up process in Bermuda.
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