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Embattled commodity trader Noble Group has warned that it will record a net loss of around $130m for the first quarter.

The Singapore-listed company cited a challenging operating environment, which it said had been made worse “by dislocation in the coal markets.”

The company the dislocation had caused “the decoupling of prices of key indices, liquidity dropping significantly and the breaking down of correlation.” It did not give further details.

“The group has taken measures to re-align its portfolio to mitigate against both the continuation and repeat of such adverse events,” Noble said.

The news will be a blow to shareholders who recently backed a 10-to-1 share consolidation.

After falling by almost 80 per cent between early 2015 and the start of this year, shares in Noble have tumbled another 24 per cent in 2017.

Noble has faced difficulties during the commodity slump, including attacks on its accounting and the need to pay down debts. Noble has defended its accounting and said it is working towards a recovery. In March it raised $750m from the sale of junk bonds.

Noble is due to release results on Thursday. “In the meantime, shareholders and investors are advised to exercise caution when dealing in the shares of the Company,” it said.

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