Australian steelmaker BlueScope Steel has posted a net profit of A$439.3 million ($287.41 million) for the first half ended December 31 of the financial year 2023-24, compared to a net profit of A$598.9 million in the first half of the previous financial year.
The company attributed the decrease in its net profit to the lower underlying EBIT.
The company’s sales revenues in the given period decreased by eight percent year on year to A$8.54 billion ($5.59 billion), due to lower global steel prices and lower volumes.
Meanwhile, BlueScope’s underlying EBIT in the given period was A$718.4 million ($470.21 million), compared to A$851.1 million in the first half of the 2022-23 financial year, due to softer steel spreads and higher costs.
Among BlueScope’s decarbonization endeavors is the electric arc furnace project in New Zealand. The electric arc furnace project with NZ$300 million ($184,68 million) of investment in New Zealand is reported to be on schedule and is expected to be completed in the financial year 2025-2026.
BlueScope also stated its intention to build a new midstream facility in the Midwest US. The company said that the project will initially include a cold rolling line, a pickling line and a galvanized/galvalume line. The project is expected to require a $1.2 billion investment and would take seven years to complete.
BlueScope will provide an update on the project during the second half of the financial year 2023-2024.
The company expects underlying EBIT to be in the range of A$620-690 million in the second half of the financial year 2023-24. Expectations are subject to foreign exchange and market conditions.
