BlueScope Steel more than doubles HY profit, hikes interim dividend
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The news: Australia’s biggest steelmaker BlueScope Steel more than doubled its first-half net profit to $391 million, as the company experienced stronger US spreads, higher volumes and solid cost performance during the period.
The numbers: The result, up from $179 million in the prior corresponding period, topped average forecasts of $356.2 million, according to Visible Alpha data.
Underlying earnings before tax and interest was up 81% to $557.5 million, edging out estimates of $552.1 million.
The company declared an interim dividend of 65 cents per share, more than doubling the payout from a year earlier.
The context: New BlueScope CEO Tania Archibald, who started the role this month, said the result was a "clear demonstration of the strength and diversity of our portfolio during a period of sustained low Asian steel spreads".
She said the company, which received a $13 billion takeover offer by SGH and Steel Dynamics last month, is approaching an "inflection point", with its $2 billion investment program entering its final phase.
She noted that BlueScope is "poised to deliver materially stronger cash flows" as the investment phase ramps down and the deliver phase ramps up.
