Full Year 2024 BlueScope Steel Ltd Earnings Call Transcript
Key Points
- BlueScope Steel Ltd (BLSFF) delivered a resilient performance despite volatile macro conditions, with an underlying EBIT of $1.34 billion and a return on invested capital of 11.9%.
- Strong contributions from North Star and downstream value-added components offset the impact of soft spreads in Asia.
- The company delivered nearly $550 million in shareholder returns and finished the year with a $364 million net cash balance sheet.
- The Board approved a $0.30 per share dividend and extended the buyback program to allow the remaining $270 million to be purchased over the next 12 months.
- Significant progress in decarbonization efforts, including a 12.2% reduction in steelmaking emissions intensity, aligning with the 2030 target level.
- Safety performance in 2024 was disappointing, with an increase in lagging safety indicators and a fatal injury of a customer's contract driver in North America.
- The rapid contraction of US spreads late in the financial year impacted North Star's performance.
- The New Zealand business faced tough macro conditions and operating challenges, resulting in a softer performance.
- Inflationary pressures, including higher electricity costs, are compounding softer industry conditions, particularly in Australia.
- The BlueScope Coated Products business in the US continues to underperform, with ongoing low bulk volumes from its foundation customer and slower external business development.
Good morning, and welcome to the BlueScope FY24 financial results presentation. I'm Mark Vassella, and I'm joined this morning by David Fallu, our Chief Financial Officer. Together David and I will take you through the results materials after which we'll have time for Q&A.
We're joining you today from BlueScope's head office in Melbourne, part of the Eastern Kulin Nation and I'd like to acknowledge the traditional custodians of this land, the Wurundjeri peoples. We pay our respects to elders, past, present and emerging and to all First Nations people joining us today.
Despite the volatile macro conditions in FY24 BlueScope delivered a resilient performance. Underlying EBIT of $1.34 billion and a return on invested capital of 11.9% as strong contributions from North Star and the downstream and value add components of the business offset the impact of soft spreads in Asia on our steelmaking operations.
Particularly in the second half as regional spreads dropped below the long
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