BlueScope Steel today reported a net profit after tax of $805.7 million for the 2024 fiscal year. This is a $203.5 million decrease on the 2023 fiscal year. Speaking to the result, Managing Director and CEO, Mark Vassella said, “Underlying EBIT for the year was $1.34 billion, representing a solid performance in the context of macro-economic and industry volatility. Whilst this reflects a lower result than FY2023, it again demonstrates BlueScope’s resilience, as strength in the US steelmaking and global downstream operations offset the impacts of bottom-of-cycle Asian steel spreads on our Australian and New Zealand steelmaking businesses.

“Operating cash flow for the year, after capital expenditure, was $434 million. This was lower than FY2023 due to slightly lower earnings, higher working capital, and higher capital expenditure, as we invest to secure long-term sustainable earnings and growth. Despite the lower operating cash flow, BlueScope again finished the year with a robust balance sheet, with $364 million net cash,” Mr Vassell added.

A statement from BlueScope Steel said that during FY2024 $548 million was returned to shareholders as part of the company’s ongoing objective to distribute at least 50% of free cash flow in the form of dividends and on-market buy-backs. The statement said the Board’s intention is to increase the annual ordinary dividend level to target 60 cents per share per annum. The Board has also approved an extension of the share buy-back program to allow the remaining amount of up to $270 million to be bought over the next 12 months.

BlueScope Steel continued to make progress on its key sustainability outcomes during the year, most notably achieving a 12.2% reduction in aggregated steelmaking emissions intensity against its FY2018 baseline, in line with its 2030 target level.

In the first half of FY2025, BlueScope Steel says its Australian performance will continue to be impacted by low Asian steel spreads, driven by high regional steel production and exports, which affect both steel prices and raw material costs. Inflationary pressures, including higher electricity costs, will add to the challenges. In the US, while demand in steel-consuming sectors is stable, channel purchasing behaviour has seen the hot rolled coil spread fall to post-pandemic bottom-of-cycle levels. In this context, the company expects underlying EBIT in the period to be in the range of $350 million to $420 million.