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A New Beginning For Noble Group Limited?

Noble Group Limited (SGX: N21) made two major announcements today.

One is that its chief executive officer, Yusuf Alireza, has resigned. Alireza thinks that now is a good time for him to move on as the company’s transformation is almost complete. Over the past few years, Noble Group has been actively changing its business into one with an asset-light model by disposing many assets.

The board has also appointed William Randall and Jeff Frase as Noble Group’s new co-chief executive officers.

Randall, who has been with Noble Group since 1997, is currently the president of Noble Group and an executive director of the company. For the most part of his career with Noble Group, he has been working in the company’s coal, mining, and supply chain management segment.

Frase is currently president of Noble Americas and head of Oil Liquids. He is a relatively new face in the company, having joined only in 2013. Prior to his time with Noble Group, Frase had spent more than two decades with investment banks, JP Morgan and Goldman Sachs, focusing on oil trading.

The other key announcement is that Noble Group is starting the sale process for its Noble Americas Energy Solutions business. The sale of this business segment, if it’s a success, should generate strong cash flow and profits for the company and further improve its balance sheet. In the most recent quarter (the first-quarter of 2016), Noble Group still has a net debt to equity ratio of 96%.

Foolish Summary

How will the policies and strategies of Noble Group change after the departure of Alireza? And how well would a dual  chief executive structure work for the company?

Whatever the future holds for Noble Group, it seems that the company is eager to move on from its weak business performance over the last few years.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.