Noble Group improves profitability, net debt to EBTIDA at Dec. 31

By Jennifer Lanning Drey

Savannah, Ga., Feb. 28 - Noble Group Ltd. posted improved profitability in the second half of 2010, which helped its net debt to EBTIDA ratio fall to less than 3 times, Robert van der Zalm, its chief financial officer, said Monday during the company's year-end earnings conference call.

Noble's net debt to EBTIDA ratio had previously increased over the last two years to an average of 3.5 times, he said.

The company reported record revenue of $56.7 billion for full-year 2010, compared to revenue of $431.2 billion for 2009. Noble said the higher revenue was driven by broad-based growth at each of its commodity segments, particularly in the energy segment, where revenue more than doubled.

The full-year net profit was $606 million, compared to $556 million for 2009.

Noble ended the year with in excess of $7 billion available under its committed and uncommitted bank lines.

During 2010, the company issued $1.2 billion of new five- and 10- year debt maturities.

"Given the many economic and geopolitical uncertainties on the horizon, I feel very comfortable with the approach taken and the capital structure we have secured," van der Zalm said during the call.

Gross debt increased to just over $6 billion at the end of 2010 from $3.5 billion at the start of the year. However, the higher gross debt was partially offset by increased cash levels, the CFO said. Net debt increased by $1.9 billion in 2010, he reported.

"We continue to have a very diversified debt profile. We have a good mix of commercial bank debt, long-term note issuances and convertible bonds. I believe this approach is prudent, as it provides access to a global community of commercial banks and debt investors who have historically provided Noble with tremendous support," van der Zalm said.

Noble Group is a Hong Kong-based global supply chain manager.

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