Noble group is an Asian conglomerate that is headquartered in Hong Kong & is a globally recognized brand.
Image: company website
It is listed on the Singapore because of its previous lackluster performance in the Hong Kong stock exchange. This company was formed in 1986 by Richard Elman, a Hong Kong based British Businessman, and Noble group operates in the commodity sector, and it manages the entire supply chain from producers of the commodity to the consumers of the commodity.
It buys commodities such as oil, coal from the producers, transports to the terminal for storage, stores oil to benefit from price increase, blending to improve the value of the commodity, then transport it to the costumer. It profits from price margin, transportation fees, storage fees, blending fees, shipping fees.
It has three business segments – Energy, Mining & Metals, Logistics and Power & Gas.
The metals and mining business sources metals such as aluminium, copper, Bauxite, Alumina and other raw material through various methods then supplies it to customers in different industries such as aerospace, construction, automotive as per their specification.
The Energy business trades crude oils, distillates, gasoline, naphtha etc between oil producers and oil consumers.
The logistic business mainly provides ocean transport to internal and external customers.
The Gas and power business is an energy trading business that partners with producers and consumers to minimize their risks related with their supply chain.
It follows an asset light strategy because of which it doesn’t own any commodity producing asset (e.g. a coal mine, or an oil rig). It has diversified itself to reduce risks associated with a particular geography. Currently it operates in North America, Asia, and other markets.
Currently this company is facing tough times. Its rating was downgraded to junk in 2015. Mostly because of the losses it incurred in the commodity market due to sluggishness in the commodity market due to decline in demand by China.