Noble energy division 2007 gross profit down 28%

27 February 2008 04:06  [Source: ICIS news]

SINGAPORE (ICIS news)--Hong Kong-based Noble Group posted a 28% drop in energy segment gross profit to $184.6m (€123.7m) in 2007 on reduced contributions from its clean fuels and carbon credit divisions, the commodities firm said late on Tuesday.

This drop was despite an almost 76% rise in turnover to $10.9bn in the segment, which includes its coal and coke, clean fuels, carbon credits and petrochemicals divisions, the company said in a statement on its website.

Tonnage volume for the segment rose nearly 60% to 48.6m tonnes, led by strong global demand for coal and coke while price volatility and price backwardation in its clean fuels segment affected its traditional carry business model, the company added.

Its ethanol business was also hit by excess supply in the US, delayed plant start-up and higher corn feedstock prices, prompting it to re-look its strategy, it said.

Noble’s petrochemical division, which includes its bulk petrochemical, chemicals and polymers activities, posted its best performance in recent history with improved gross profits and margin in the division, it said without providing figures.

“Our petrochemicals division reported revenue and tonnage volumes comparable to 2006 although fourth quarter revenue and tonnage levels were well below 2006 levels,” it said, adding that it planned to expand in high growth markets in the Middle East and Asia, Noble said.

A long term off take agreement with Natpet, a newly established polypropylene (PP) plant in Saudi Arabia, would help it expand its distribution capability through its acquired Oxyde operations, develop an India distribution business and create a polymer distribution operation in the China.

At group level, Noble posted a 69% year-on-year rise in its 2007 gross profit to $823.7m, while its revenue increased 71% to $23.5bn.

 ($1=€0.67)

By: Florence Tan
+65 6780 4359

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