Monthly Archives: March 2016

Mini-Quiz #2

Continue reading Mini-Quiz #2


Profit and Losses (P&Ls) in Real Terms


You’d expect to have the P&L stated by US$ 100,000 of capital used.

 Noble profitability

Figure-4 Noble Group Profitability per $US 100,000 of capital

Figure 4 tells us that if Noble Group’s profit is too low / expansive in real terms.

In all fairness, Noble Group doesn’t make it and if is was a trade floor at a bank, they’d be cut out.

The commodity trading unit is at least two to three times less than the threshold that a JP Morgan or a Citigroup would set PER $100,000 for their proprietary capital.

Bankers, arguably the experts in risks, do not trade a very-low profitable book and lend money to the cash-addicted company instead of trading directly.

You would also expect to have the P&L PER US$ 100,000 of capital stated in relative terms:

cargill profit

Figure-5 Noble Group Profitability per $US 100,000 of capital vs Cargill


By all accounts, the physical oil or coal volume traded by Noble Group Ltd. would place them in the world’s largest charterers of ocean-going vessels.


Figure 2- Segments Results

Can the commodity trader seriously trade over 3 Million barrel equivalent per day ?

“Don’t kid yourself, with Noble you can easily cut the apple in 4 or 5 “.

 Legendary oil trader

energy fixtures noble group

Figure 3- Top Reported Dirty Spot Charterers for 2015

150 Millions metric tonnes of Oil liquids is a volume greater THAN the SUM of:

ST SHIPPINGShipping arm of Glencore.

CLEARLAKE, Shipping arm of Gunvor.


CSSA, Shipping arm of Total S.A

and the Shipping arm of BP all combined…