- Sumitomo Corporation increased its fiscal 2026 net profit forecast by 6% to 670 billion yen ($4.3 billion), citing stronger energy and metals earnings.
- The Japanese trading house raised its annual dividend forecast from 40 yen to 44 yen per share.
Japanese trading house Sumitomo Corporation has raised its fiscal 2026 profit and dividend forecasts following stronger performances in its energy and metals businesses. The company expects higher commodity prices and favourable foreign exchange rates to support earnings through March 2027.
Profit Forecast Rises to 670 Billion Yen
Sumitomo increased its net profit forecast to 670 billion yen ($4.3 billion), up from its previous estimate of 630 billion yen. The revision represents a 6% increase.
The company also raised its annual dividend forecast to 44 yen per share from 40 yen.
Chief Executive Shingo Ueno attributed the improved outlook to higher commodity prices, favourable foreign exchange movements and stronger underlying earnings. He also said the prolonged Middle East conflict had a smaller-than-expected impact on the company’s performance.
Energy Trading Boosts Earnings
Sumitomo recorded stronger earnings from natural gas and liquefied natural gas (LNG) trading during the first half of the fiscal year.
Ueno said the company expanded its gas trading activities in the United States and Europe as energy prices increased. He expects the business to maintain strong performance, supported by steady US operations and the establishment of a European office.
The company expects its expanding international gas trading operations to support earnings growth in the coming months.
Metals Business Supports Financial Performance
Higher copper prices also contributed to Sumitomo’s improved earnings outlook.
The company recorded solid performances from its midstream and downstream aluminium operations, alongside stronger contributions from its energy businesses.
These developments helped offset potential pressures from geopolitical uncertainty and prolonged conflict in the Middle East.
Sumitomo Reviews Offshore Wind Project
Sumitomo is reviewing its Saikai offshore wind project in Nagasaki Prefecture, Japan, as it evaluates options to advance development.
Ueno said the company was assessing the project from multiple angles but had not made a final investment decision. However, Sumitomo intends to maintain its target of starting operations in 2029.
The company is also considering whether to participate in Japan’s long-term decarbonisation power auction scheme. The country’s industry ministry has made the scheme available to certain existing offshore wind projects.
Sumitomo’s latest forecast reflects stronger contributions from energy and metals operations, while its offshore wind review highlights its continued interest in expanding renewable energy investments.