The cash-rich raw materials merchant and logistics firm is looking for assets
The Noble Group intends to stay on the acquisition trail this year to meet the growing global demand for raw materials and the transport services that bring those goods to market, according to chief executive Richard Elman.
The Singapore-listed raw materials and logistics firm yesterday said its net profit soared last year to US$286.14 million from US$61.25 million in 2003. The cash-rich firm saw sales increase to US$8.62 billion from US$4.39 billion after strong contributions from all sectors except its grains division.
'Obviously we are delighted with the results,' Mr Elman said. 'The company is starting to benefit from 20 years of hard work and a turn in the demand side of the commodities business.
'For the past 20 years, [the commodities business] has been in a deflationary, disinvestment mode. There have been some small pockets of growth, but suddenly it has all come together.
'We are looking around for assets to purchase.'
He estimated that Hong Kong-based Noble had US$350 million cash on hand. 'We have a lot of cash on the balance sheet so we are in a good position to continue to grow this company.'