SUMITOMO CHEMICAL COMPANY,LIMITED [4005.T]
TOKYO, May 14 (Pulse News Wire) – Sumitomo Chemical Company,limited (4005.T) reported a gain from the reversal of equity evaluation losses related to its investment in LaRivg Refining & Petrochemical Company's common stock during the fourth quarter ending March 31, 2026. In the third quarter of fiscal 2026, which ended on December 31, 2025, Sumitomo Chemical had recorded an impairment loss on its equity method affiliate, LaRivg Refining & Petrochemical Company.
However, due to a recovery in the share price, the company recognized a reversal of this impairment loss amounting to -¥13.36 billion in the fourth quarter. The impact of this reversal is reflected solely in the individual financial statements and does not affect the consolidated results, as such gains are eliminated in the consolidation process.
Sumitomo Chemical’s decision to disclose this significant accounting adjustment underscores the volatility in equity investments and highlights the importance of monitoring market conditions affecting affiliated companies.
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