Commodities trader Noble Group has warned it will post a net loss in the fourth quarter and for the full-year 2015, after taking a $1.2 billion hit from adjustments as commodities prices continued to tank.
The company said it had cut its long-term view on coal prices, which it said had been hit by a combination of a drop in the price of oil, the move toward sustainable energy and a fall in global demand. The company's long-term view is key because it uses it to set an "anchor" coal price that it uses to project the value of its trading contracts.
The $1.2 billion impairment is on top of the loss on the sale of Noble Agri to China's Cofco for at least $750 million announced in December last year.
Noble has put the focus on coal prices in its guidance as the vast majority of its long-term contacts are exposed to coal, chief executive Yusuf Alireza said in a conference call Tuesday.
The Singapore Exchange-listed company will release its full-year results on Thursday after market hours.