October 1, 2019 / 8:29 AM / 5 months ago

Sumitomo Corp to book Y70 bln loss on nickel unit in FY19/20 on parent basis

TOKYO, Oct 1 (Reuters) -

* Japanese trading house Sumitomo Corp said on Tuesday it will book an appraisal loss of about 70 billion yen ($647 million) related to the Ambatovy nickel project in the year to March 2020 on a parent-only basis due to slow output at the Madagascar project.

* Sumitomo, which holds a 47.67% stake in the project through its unit Summit Ambatovy Mineral Resources Investment (SAMRI), has faced a series of delays in its ramp-up.

* But the latest evaluation loss on the unit on a parent basis under Japanese accounting standards will not affect its group profit estimate for the current financial year as it has already wrote off a similar size of impairment losses under the International Financial Reporting Standards (IFRS) by last financial year, a company spokeswoman said.

* Sumitomo’s chief financial officer, Koichi Takahata, said in August that the Ambatovy nickel plant produced 9,000 tonnes in the April to June quarter, and it still expects annual output of more than 40,000 tonnes for the year to March. ($1 = 108.2300 yen) (Reporting by Yuka Obayashi, editing by Louise Heavens)

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