BlueScope Steel's 1H FY2024 financial performance

BlueScope Steel Limited (ASX: $BSL) reported a resilient 1H FY2024 financial performance, with underlying EBIT of $718M and a LTM ROIC of 13.4% in volatile economic and industry conditions. The company maintained a net cash balance sheet of approximately $600M and announced a 25 cps dividend with an increase to the buy-back. BlueScope is executing key projects for sustainable earnings and growth, continuing its product shift towards premium branded products, and examining opportunities to further integrate the US value chain. The company also announced a collaboration agreement with BHP and Rio Tinto, commencing the project to install an EAF at NZ Steel.

Executive commentary on 1H FY2024 financial performance

BlueScope's diversified business model has delivered quality through-cycle earnings, with leading positions in Australia and NZ, best-in-class steelmaking in the US, and a suite of premium branded products and solutions that enhance margins. The company is focused on outstanding growth opportunities, including continued product shift towards premium branded products in Australia / NZ, volume growth from investments in advantaged US steelmaking assets, and growing coating and painting capability in the US. BlueScope is also committed to securing its long-term future through a decarbonisation program and sustainability approach.

Summary of 1H FY2024 financial performance and outlook

BlueScope Steel's 1H FY2024 financial performance reflects its resilience in volatile economic and industry conditions, with a focus on sustainable growth and returns. The company's ambitions include executing key projects for sustainable earnings and growth, continuing its product shift towards premium branded products, and examining opportunities to further integrate the US value chain. BlueScope's collaboration agreement with BHP and Rio Tinto and the project to install an EAF at NZ Steel demonstrate its commitment to long-term sustainability. The company's outlook for 2H FY2024 includes expectations of a result slightly below 1H FY2024, particularly in Asia, while North America is expected to deliver a significantly higher result than 1H FY2024.