Very good result after poor trading conditions in the second half brought about by the US/ China trade war. BSL have committed to the expansion of Northstar to be operational in 2022. Reducing the cash required to be held from $200 to $400M down to net zero as financials are stable.
The fact that interest me the most is this statement "As at 30 June 2019, the BlueScope Australian consolidated tax group is estimated to have carried forward booked tax losses of approximately $1.4Bn." This is only a reduction of $400M from 12 months ago and means that BSL is unlikley to pay tax in Australia for at least another 3 years and therefore will not have franked dividends. I believe this means that buybacks will continue for the forseeable future which may hold the share price down until reasonable franked dividends can be paid. Should be good in the long term.
BSL Price at posting:
$12.20 Sentiment: Hold Disclosure: Held
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