Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Biotron Expands into Anaesthetics with Sedarex Acquisition and $2.5m Raise
    Biotron Expands into Anaesthetics with Sedarex Acquisition and $2.5m Raise
    • News

  • DroneShield Boosts Defence Capability with $13 Million Adelaide R&D Investment
    DroneShield Boosts Defence Capability with $13 Million Adelaide R&D Investment
    • News

  • Stakk Secures T-Mobile Contract to Power Super App Expansion
    Stakk Secures T-Mobile Contract to Power Super App Expansion
    • News

  • Medibank Backs Emyria with Landmark Depression Care Deal
    Medibank Backs Emyria with Landmark Depression Care Deal
    • News

  • NoviqTech Launches Quantum Intelligence Products, Opening Path to Enterprise-Grade Quantum AI
    NoviqTech Launches Quantum Intelligence Products, Opening Path to Enterprise-Grade Quantum AI
    • News

  • BRE Wins Final Permit to Advance Rare Earth Pilot Plant in Brazil
    BRE Wins Final Permit to Advance Rare Earth Pilot Plant in Brazil
    • News

  • Harris Technology eyes profitability as refurbished tech sales surge
    Harris Technology eyes profitability as refurbished tech sales surge
    • News

  • QIC Fund Backs Ark Mines with $4.5m to Accelerate Sandy Mitchell Development
    • News

  • Swift Secures $2.4m Chevron Contract to Extend Entertainment and Support Services
    Swift Secures $2.4m Chevron Contract to Extend Entertainment and Support Services
    • News

  • FBR’s tech could help reduce housing construction-related cost pressures
    FBR’s tech could help reduce housing construction-related cost pressures
    • News

BlueScope Steel posts best earnings in its history

  • In News
  • February 21, 2022
  • Jack Cornips
BlueScope Steel posts best earnings in its history

Australian-based steelmaker BlueScope (ASX: BSL) has posted its best first half-year performance in its 20-year history. The earnings were bolstered by increased demand from building and construction in the US and Australia for steel, which has delivered significantly higher margins, reflecting the higher iron ore market. 

The Company booked a net profit after tax of $1.64b, a 398% increase year-on-year, while revenue rose 62% to $9.4b. This has allowed Bluescope to issue its largest unfranked interim dividend ever of 25c per share to shareholders, up from 6c last year. What’s more, with $285m worth of share buy-backs since August 2021, the Company plans to increase this to a further $700m over the next 12 months to boost its price. 

Confirming the record year, CEO Mark Vassella said, “Underlying EBIT for the half-year was $2.2b, clearly the best half-year performance BlueScope has produced.” 

Underlying earnings before interest and tax (EBIT) was a record $2.2b – up from $1.67b a year prior. Guidance for underlying EBIT in 2022 is expected to be between $1.2b and $1.35b, which would be their second most decisive half only to this half, though this guidance is perhaps disappointing compared to this half’s current performance. 

“Demand in key segments, especially in building and construction, has been strong, coupled with particularly robust margins driven by increased steel prices in Asia and the US,” added Vassella. 

The Company’s North Star steel mill in Ohio in the US boosted their earnings with an EBIT of $1.23b, which saw a 1,655% increase compared to first half 2021. There has also been news that the Group has been working to acquire MetalX, a US-based business for $324m (US$240m), who just happens to be a current provider of 20% of steel scrap feed to its North Star Ohio mill.

BlueScope also plans to reline its blast furnace in Port Kembla, with a cost of around $1b and hopes that the upgrade will be sufficient enough until green steel technologies have been developed and are viable. The blast furnace has a life of 20 years, which aligns perfectly with their decarbonisation strategy and a 2050 net-zero goal. If newer technologies are discovered, the reline won’t lock in BlueScope for the entire 20 years. 

BlueScope has been quite the performer since the crashes of the coronavirus in early 2020, gaining over 200% from $8.64 to $26.13 in August 2021. Since then however, shares have tracked back roughly 21% and currently sits flat at $18.69 at the time of writing.

  • About
  • Latest Posts
Jack Cornips
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
  • UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
  • Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
  • Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023
  •  
  •  
  •  
  •  
  • asx bsl
  • bluescope
  • bsl
  • steelmaking
  • News

Leave a Comment

You must be logged in to post a comment.

  • About
  • Latest Posts
Jack Cornips
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
  • UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
  • Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
  • Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Jack Cornips
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
  • UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
  • Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
  • Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.
Subscribe

Enter your email address below to subscribe to The Sentiment’s weekly newsletter, highlighting the top news, research, opinion and satire articles shaping ASX investor sentiment.

The Sentiment respects your privacy and will not spam you. View our privacy policy here.