Ann: 1H FY2022 Results Press Release, page-8

From Markets Live:

Bluescope earnings and revenue soar on booming demand

By Colin Kruger

Steelmaker BlueScope says revenue jumped 62 per cent to $9.4 billion and net profit soared 400 per cent to $1.64 billion thanks to higher global steel prices and strong demand across its markets.

“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,” BlueScope CEO Mark Vassella says.

The company’s interim dividend also tripled to 25¢ per share. The stock was slightly lower this afternoon at $18.89.

The BlueScope steelworks in Port Kembla, New South Wales. Credit:Janie Barrett

The board also approved an increase in the scale of its buy-back program to allow up to a further $700 million to be bought over the next 12 months.

BlueScope says its EBIT for the current half year will be in the range of $1.20 billion to $1.35 billion. This would rank it just behind the December half year reported today, which was the best in its 20-year history as an independent company.

Moodys Ratings Agency says “This material growth in earnings largely reflected record steel spreads and consistent volumes at NorthStar in the US, as well as continued robust domestic volumes and pricing for Australian Steel Products. BlueScope’s earnings will reduce in the second half of fiscal 2022 on lower steel spreads, but will still be at strong levels for its credit profile.”

BlueScope did flag that there are elevated risks – particularly from pandemic-related impacts on operations, supply chains and demand, volatility in steel prices and spreads, and the current geopolitical environment.