BlueScope Steel Limited (ASX:BSL) Reports H1 FY2025 Financial Results
Financial Performance
BlueScope Steel Limited (ASX:BSL) reported a 7% decrease in sales revenue for the six months ended 31 December 2024, totaling $7,913.6 million. The company’s reported net profit after tax (NPAT) fell by 59% to $179.1 million, while underlying NPAT declined by 63% to $176.4 million. Underlying earnings before interest and tax (EBIT) also saw a significant drop of 57% to $308.8 million. The net tangible assets per share increased by 11% to $20.22.
Funding and Shareholder Returns
BlueScope announced an interim fully franked dividend of 30.0 cents per share for 1H FY2025, with a record date of 24 February 2025 and a payment date of 25 March 2025. Additionally, the company has extended its share buy-back program to allow up to $240 million to be repurchased over the next 12 months. During the first half of FY2025, $162 million was returned to shareholders through dividends and buy-backs. The company’s net cash position improved to $87.5 million from $364.0 million at the end of June 2024, and financial liquidity stood at $2.9 billion.
Future Outlook
BlueScope expects underlying EBIT in the second half of FY2025 to range between $360 million and $430 million, driven by improved steel spreads, stronger domestic volumes in Australia, and benefits from ongoing cost and productivity initiatives. These expectations are subject to spread, foreign exchange, and market conditions.
Sustainability and Safety Initiatives
The company continued its “Refocus on Safety” program in response to recent safety concerns, aiming to enhance risk control and employee engagement. BlueScope also released its second Climate Action Report, detailing progress on decarbonisation efforts and collaborations on an electric smelting furnace pilot plant in Western Australia.
Financial Position
As of 31 December 2024, BlueScope maintained a strong balance sheet with a net cash position of $87.5 million and retained investment grade credit ratings from S&P Global Ratings and Moody’s. The company’s financial liquidity was reported at $2.9 billion, including $819 million in the NS BlueScope Coated Products joint venture.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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