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Highlights

  • BlueScope Steel, a steel manufacturer, has recorded revenue of AUD 18.24 billion in FY23
  • Recently, BSL has downgraded its earnings guidance for 1HFY24 from AUD 700 – 770 million to AUD 620 – 670 million
  • The expansion of North Star is expected to add nearly 850k tonnes every year

BlueScope Steel Limited (ASX: BSL) is an ASX-listed steel manufacturer which is focused on offering steel products, systems, materials and technologies across Pacific islands, North America, New Zealand, Australia and throughout Asia.

In the financial year 2023, the company reported a 4.1% YoY fall in revenue to AUD 18.24 billion, a 64.1% YoY decline in net income to AUD 1.01 billion and a 40.2% YoY decrease in total debt to AUD 787 million. 

While sharing the FY23 results, the company shared that in the first half of FY24, it expects underlying EBIT of AUD 700 million to AUD 770 million. Moreover, in relation to 2HFY23, the company expects lower profit attributable to non-controlling assets and similar underlying tax rates and net finance costs.

Recently (20 October 2023), the company has shared an updated earnings guidance for 1HFY24. The updated underlying EBIT guidance is AUD 620 million to AUD 670 million. The earnings guidance has been downgraded because of guidance contraction for North Star due to softer steel prices and spread. Moreover, the expected project sale by the BlueScope Properties Group, US, has been delayed from 1HFY24 to 2HFY24.

Top shareholders of BSL

The Vanguard Group, Inc. has the highest stake in BSL, with a shareholding of 5.12%, followed by BlackRock Institutional Trust Company, N.A., which has nearly 3.47% shareholding.

Growth opportunities

The material growth drivers of BSL are an increase in steel-intensive construction and building, promotion of the green revolution and significant recovery of the supply chain.

The expansion of North Star is expected to add nearly 850k tonnes every year, and the New Metal Coating is forecasted to clock AUD 415 million.

The company had completed an acquisition of around AUD 720 million of the second-largest US coil painting business, which has an annual capacity of around 900k. Furthermore, around AUD 430 million acquisition was concluded under BlueScope Recycling to supply nearly 30% of North Star’s scrap needs. 

Share performance of BSL

BSL shares closed 0.98% up at AUD 18.49 apiece on 25 October 2023. With this, BSL’s shares have witnessed a rise of 17.77% in the past 12 months and a fall of 12.70% in the past three months.

The 52-week high of BSL is AUD 22.16 apiece, recorded on 1 August 2023, while the 52-week low is AUD 15.55 apiece, recorded on 28 October 2022.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 25 October 2023. The reference data in this report has been partly sourced from REFINITIV.