Sumitomo Corporation Divests Majority Stake in Ambatovy Nickel Project
Sumitomo Corporation (SSUMY), a Tokyo‑listed trading company, announced that it will divest its 54 % stake in the Ambatovy nickel mine project in Madagascar. The divestiture is scheduled to occur during the first half of the fiscal year ending March 2027. The decision follows a review of market conditions and the project’s operational challenges, including a significant cyclone in February that disrupted production.
The company expects a charge of approximately ¥70 billion (US$445 million) on the transaction. This loss is partially offset by a reduction in income‑tax expenses. Operations at Ambatovy were suspended shortly before the announcement.
Full‑Year Financial Performance
Sumitomo reported a full‑year profit of ¥600.334 billion, up from ¥561.859 billion the previous year. Earnings per share (EPS) increased from ¥463.32 to ¥498.66. Total revenue rose 0.6 % to ¥7.337 trillion from ¥7.292 trillion. The company’s price‑earnings ratio stands at 12.688.
For the quarter ended March 31, 2026, Sumitomo delivered an EPS of ¥143.32, a 19.3 % improvement over the prior‑year quarter’s ¥120.13. Revenue for the quarter is expected to reach ¥2.233 trillion, up 13.23 % from the previous year’s ¥1.972 trillion.
Market Reaction
On May 1, the Nikkei index edged higher, supported by gains in technology stocks and a stronger yen. Sumitomo’s shares rose 17 % to ¥6.840 yen after the release of its financial results and the announcement of a share buy‑back program. The yen’s appreciation contributed to a rebound in government bond prices.
Other Asian markets remained largely closed; only Tokyo and Sydney were open, with the Nikkei up 0.4 % to 59,513.12 points.
