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Sumitomo Chemical Reduces Stake in Petro Rabigh, Strengthening Financial Strategy

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Sumitomo Chemical Reduces Stake in Petro Rabigh, Strengthening Financial Strategy

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Sumitomo Chemical Co ( (JP:4005) ) has shared an announcement.

Sumitomo Chemical Co., Ltd. has completed the sale of a portion of its Class A ordinary shares in Rabigh Refining and Petrochemical Company (Petro Rabigh) to Saudi Aramco, reducing its stake from 37.5% to 15%. This transaction makes Saudi Aramco the largest shareholder of Petro Rabigh, holding nearly 60% of the Class A shares. The move is part of a strategic effort to improve Petro Rabigh’s financial structure and support its turnaround plan. Sumitomo Chemical and Saudi Aramco have also subscribed to new Class B ordinary shares issued by Petro Rabigh, which will aid in prepaying debts and reducing accumulated losses. The financial impact on Sumitomo Chemical includes a projected profit of approximately 35 billion yen before tax for the third quarter of the fiscal year ending March 31, 2026, despite recording a loss on valuation of the newly acquired Class B shares.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen510.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

More about Sumitomo Chemical Co

Sumitomo Chemical Co., Ltd. operates in the chemical industry, focusing on the production of a wide range of chemical products. The company is involved in various sectors, including petrochemicals, energy, and materials, with a significant market presence in Japan and globally.

Average Trading Volume: 12,280,675

Technical Sentiment Signal: Buy

Current Market Cap: Yen747.2B

Learn more about 4005 stock on TipRanks’ Stock Analysis page.

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