February 19, 2024

Industry News

BlueScope Steel Delivers Strong First Half FY2024 Results

BlueScope Steel today reported 1H FY2024 net profit after tax (NPAT) of $439 million, a $29 million increase on 2H FY2023. Speaking to the result, Managing Director and CEO, Mark Vassella said, “We’ve seen real volatility across the global economy, particularly prevalent in the steel sector. Despite this, I’m pleased to report BlueScope has again delivered a strong result, with an underlying EBIT of $718 million for the half year.

“Our outlook for the Company in the second half is for a result slightly below 1H FY2024, in an environment of unprecedented softness in Asian steel spreads. Upon delivery, this will again reinforce the strength of BlueScope’s diversified business model, that can deliver at any point in the cycle.

“Operating cash flow for the half year, after capital expenditure, was $255 million which lead to a $614 million net cash position at the end of the half. This robust balance sheet underpins our confidence to invest for future earnings and growth across our regions and throughout the steel industry cycles.”

“The first half saw real progress on a range of key projects. In the US, the ongoing ramp-up of North Star is nearing full run-rate, and the recycling business is performing well. In Australia we have commenced the No.6 Blast Furnace reline, building our bridge to a low carbon future, and construction for the new metal coating line (MCL7) in Western Sydney is on track. And at Glenbrook, south of Auckland, we’ve begun works to install the $300 million electric arc furnace (EAF), securing a bright future for steelmaking at New Zealand Steel.

In 1H FY2024, $306 million was returned to shareholders as part of BlueScope’s ongoing objective to distribute at least 50% of free cash flow in the form of consistent dividends and on-market buy-backs. The Board has today approved a fully franked interim dividend of 25.0 cents per share and an increase to the share buy-back program, to allow up to $400 million to be bought over the next 12 months. The full year dividend level will be assessed in light of the growth and resilience of BlueScope’s business portfolio, the reduced share count, and the medium-term macroeconomic and industry outlook.

For further information, visit the BlueScope Steel website: www.bluescope.com