Sumitomo Corporation announced consolidated net profit of ¥670 billion for the fiscal year ending March 2027, an expected 12% increase from the previous fiscal year and above market expectations. The company raised its dividend to a level above its previous forecast and implemented a 4-for-1 stock split in July.
Sumitomo Corporation announced on the 2nd that consolidated net profit for the fiscal year ending March 2027, calculated under IFRS, is expected to reach ¥670 billion, an increase of approximately 12% from the previous fiscal year. This represents a revision of ¥40 billion above the previous forecast, driven by a recovery in resources and an improved outlook for the impact of the situation in the Middle East.
The company raised its annual dividend from ¥40 to ¥44, resulting in an effective dividend increase following the stock split. The market reaction was that the announcement indicated greater stability in long-term earnings power compared with the assumptions at the start of the fiscal year.
Strong performance in the trading business transporting US LNG to Europe, along with higher market prices, is expected to contribute to growth in the marine business. Meanwhile, the expected impact of the situation in the Middle East has narrowed from the negative ¥23 billion assumed at the start of the fiscal year to approximately ¥20 billion, leading to the view that its impact on earnings will be limited.
Consolidated results for the six months ended September 2026, announced on the same day, showed net profit of ¥347.8 billion, up 15% from the same period of the previous year, with trading in petrochemical products and other businesses contributing. CFO Morooka Reiji (諸岡礼二) indicated that the company would continue measures to address a prolonged situation in the Middle East.