Noble

Noble: Results was in-line with expectations. Rev at US$24.3b, +21% yoy and +7% qoq, while net profit at $91.2m, -13.7% yoy and +21% qoq. Result brings FY12 rev to US$94b, +16% and net profit to US$471.3m, +9%. Operating margins at 1.6% vs 1.83% yoy. Results for the yr was led by the Energy and MMO divisions, while agriculture dragged grp’s bottom-line. Key findings as follow: Energy Segment – Reported a record annual tonnage, +13% yoy at 136.8m tons, and record operating profit at US$1.2b, +31% yoy, which was supported by strong contributions from existing asset and new r/s established with producers in Indo, Aus and Mongolia. The O&G and power division had record tonnage as trading capabilities were strengthened in 2012. Grp continue to asses the opportunities presented by Shale gas and Shale liquids, and its storage facilties and pipelines provide a strong pipeline for growth. MMO Segment - Record annual rev, +35% yoy while operating income +37% yoy. The division was led by diversification to include a broader portfolio mix to include products like copper, while Aluminum division registered a record operating income due to the lack of physical supply in the mkt. Other metals like Special Ores and Alloys contributed positively to grp. Agriculture segment – Rev and operating income fell due to a very challenging operating environment. Operating income -62% yoy. Sugar mills performed in-line with expectations, while the Grains and Oilseeds division experienced a very difficult yr, cause by a drought in Argentina and poor crushing conditions in China. Going forward, mgt note that the drivers from hereon should be a pick-up in agri performance, build out of MMO and ramp-up in energy, especially in offtake contracts and oil & gas. In FY13F, Noble looks for the agri segment to be driven by a pickup in sugar utilization, potential margin improvement and new crush capacity Noble trades at 10.5x FY13E P/E vs Olam at 12x and Wilmar at 13x. Ratings as follow: CIMB maintains O/p with $1.47 TP Nomura maintains Buy with $1.40 TP Maybank-KE maintains Buy with $1.48 TP SCB maintains O/p with $1.59 TP