Noble Timeline: How Iceberg sank the commodity titanic

INDUSTRIAL and energy company Noble Group crossed swords with Iceberg Research after the latter released a 17-page report in mid-February 2015, accusing the then-listed (now suspended) player of exploiting the accounting treatment of its associates to avoid large impairments and fabricate profit.

“We estimate Noble‘s equity is less than S$360 million - from a reported S$5.6 billion - after the various impairments we list (in Iceberg‘s report). On a price-to-book basis, the value of Noble‘s shares is conservatively valued at a mere 10 Singapore cents, a 92 per cent fall from the current share price,” Iceberg had then commented.

The report placed Noble’s financial valuation under intense spotlight and started the commodity group’s downfall over years as the authorities scrutinised its books amid its restructuring. Here, we traced its slide from its encounter with Iceberg to the financial penalty meted out to it.

2015

February: Iceberg Research issues a short-sell report on Noble, lists several allegations, including that Noble exploits the accounting treatment of its associates to avoid large impairments and fabricate profit.

2018

March:

• Noble auditors raise doubts on the company as a going concern.
• Shareholder sues Noble and executives, accuses them of inflating profits. Founder Richard Elman resigns from Noble’s board amid shareholder suit.

May: Noble to adopt more “conservative” accounting practices.

June: Noble calls for trading halt as restructuring hangs in balance.

August: Noble reports US$128 million loss for Q2.

September: Noble snags shareholders’ nod on pivotal debt revamp.

October: Holders of Noble’s 6.75 per cent US dollar fixed-rate senior notes with a principal amount of US$1.18 billion informed of default ahead of 2020 maturity.

November: Noble under investigation for suspected false and misleading statements, breaches of disclosure rules; EY audits under inspection as part of the probe.

December:

• Noble relisting is off; assets found to be potentially inflated.. It disputes regulators’ allegations of improper accounting.
• Noble completes transferring its assets to new entity under a US$3.5 billion debt restructuring.

2022

August: Noble fined S$12.6m for misleading financial statements.