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BlueScope’s net profit for the six months ending December 31, 2024, saw a sharp decline, according to its financial results. The company reported a net profit after tax of AUD 179.1 mln (USD 113.7 mln) for H1 FY25, down 59pct YoY, primarily due to lower steel spreads and higher costs.
Sales revenue of AUD 7.913 bln (USD 5 bln) was 7pct lower compared to H1 FY24, largely due to reduced domestic selling prices driven by softer global pricing and lower domestic volumes.
Managing Director and CEO Mark Vassella commented that the company’s underlying EBIT for the half was AUD 308.8 mln, a profitable result despite the challenging spread environment. He added that BlueScope continues to advance several initiatives and investments to secure and grow its sustainable earnings. These include investments to secure steelmaking in Australia and New Zealand through the No.6 Blast Furnace Reline & Upgrade and electric arc furnace (EAF) projects, as well as efforts to expand steelmaking in the US. Additionally, BlueScope is focusing on increasing its higher-margin value-added products, such as COLORBOND steel, which saw record volumes in H1 FY25 in Australia.
Looking ahead, the company expects underlying EBIT for H2 FY25 to range between AUD 360-430 mln (USD 228-273 mln), reflecting an improvement from H1 FY25, driven by a better spread outlook in the US, stronger domestic volumes in Australia, and benefits from the Group-wide cost and productivity program.
BlueScope operates as a flat steel producer catering to domestic Australian, New Zealand, and US markets, has an annual production capacity of around 3 mln tons of crude steel. The company specializes in manufacturing slab, HRC, plate, and coated steel products.
1 USD / 1.57 AUD
