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Sumitomo lifts FY26 profit and dividend forecasts on strong energy, metals performance

By Reuters News

By Yuka Obayashi

TOKYO, Nov 2 (Reuters) - Japanese trading house Sumitomo Corp 8053.T on Monday raised its net profit forecast for fiscal 2026 by 6% and increased its annual dividend, citing stronger performance from its energy and metals businesses amid higher commodity prices.

The company now expects net profit of 670 billion yen ($4.3 billion) for the year ending March 2027, up from its previous forecast of 630 billion yen. It also raised its annual dividend forecast to 44 yen per share from 40 yen.

  • The upgrade reflects stronger contributions from higher commodity prices and favourable foreign exchange rates, as well as a smaller-than-expected impact from the prolonged Middle East conflict and broadly solid underlying earnings growth, Chief Executive Shingo Ueno told a press conference

  • Natural gas and liquefied natural gas trading expanded in the US and Europe as energy prices rose, boosting first-half earnings, he said

  • Ueno expects the gas trading business to continue performing well, supported by steady performance in its US operations and the establishment of a European office

  • Higher copper prices and solid performances from its midstream and downstream aluminium operations also supported earnings

  • Sumitomo is reviewing its Saikai offshore wind project in Nagasaki Prefecture from multiple angles as it seeks to move the project forward, Ueno said

  • While the company has yet to make a final investment decision, its target to begin operations in 2029 remains unchanged, he added

  • The company is weighing various factors, including whether to use the long-term decarbonisation power auction scheme that Japan's industry ministry has made available to certain existing offshore wind projects

    ($1 = 157.8200 yen)

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