**Standard’s & Poors downgrades Noble Group Ltd. further into junk, saying the capital structure “is not sustainable”
**Sinochem no longer pursuing stake buying in Noble Group.
Largest Houston Marketer says
“Nothing good out of Noble camp
That’s for sure
Worse and worse by the day
All I’m saying is two years ago only one person was talking about their eventual collapse: simon jacques”…
From Energy Market Price Reporting Sources
” Visibly you have excellent source on Noble too, Jacques I’ve read all your articles. We had an argument with the head trading desk of Mercuria in London (an ex U.S Marine) because we took in consideration a deal of Noble on North Sea Crude oil. He first set fire to me and questioning the reasons on why I had taken into account a deal with a “very suspicious” and non recommendable trader such Noble… “default is a real possibility”..
“and guess what ? One or two hours later, the same gentleman of Mercuria concluded a deal with Noble in the Window”.
“A bit cynical, all those traders aren’t they”
Noble has pushed back against the exchange disclosure standards in Singapore for the compensation of its executives.
Thanks to a lawsuit, the market has been revealed that Noble owed $58M to its ex-CEO, Yusuf Alireza, the exec.
From an New-York based ex-Energy products Associate at a Wall St. Bulge-bracket Bank.
What kind of other corporate affiliates you would expect ? One has put is hand in the jar nearly $500,000 dollars in personal placement commissions on executive’s placement at Noble Americas Corporation… Case was dismissed but only because the U.S court couldn’t establish its juridiction. When you look at it, Head of HR at the company is shrouded with egregious dealings, what does the rest of the corp can look like ?
The compensation liability of some Noble Traders [est. 100-150M$ of phantom shares, cash or a combination of both] raises the delicate question:
how the 2 or 3 traders concerned can still expect monetizing their bonus along with the execs ?
This is Noble, the cancer patient on a forward-curve.
On Dec 31th 2016, the coal and gas PnL is up by about $500M with no reason, simultaneously the MTM on Commodity Contracts was also up by the tune of $500M ?!
Negative CFO -900M for Q4 told a different story than their P\L that we can only tell.
In the past we have expressed reservations about the uncertainty surrounding the outcome of Noble’s Financials as well as the risk that financial losses would continue.
To us there should be no excuse for non-performance. Its toleration shows the kind of risk management that Noble had.
In commodity trading, the unfolding of the Trade– to–cash is plainly and simply the bread and butter.
When the firm is questioned, and it’s unclear from the answers they give how they make the bread plus this firm doesn‘t show the butter : there is a problem and it should be stopped.
“At Astra Oil Trading N.V, “ASTRA” we had to least produce enough steam for $1.6M (to cover our 8 salaries, office overheads and misc expenses…) before making any profit in our pockets. It was the low-hanging food set by the line manager”.
“On day one, I was told my raison d’être: we hire and pay you specifically for one reason, protect the cheese“.
“Until December 31th, at 15 to Midnight it was like skating on the thin ice over a lake“.
–A First class Operator in Conmodity Trading.
These trading houses can’t hire a 2nd or a 3rd because it won‘t work.
There is margin for error in the trade operations on physical commodities like there is room for the cardiologist to cut the wrong artery on the surgery table.
As we reckon, the positions of a commodity trader are too precious and entrenched, they can become very quickly unmanageable.
It gives us no deals but nevertheless teaches us an important lesson, a trader without effective risk management is like playing roulette, he quits or double.