21 August 2023

Delivering a strong financial result of $1.6 billion EBIT

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BlueScope today reported FY2023 net profit after tax (NPAT) of $1.01 billion, a $1.80 billion decrease on the record result achieved in FY2022. The Company also announced that the Board has approved the $1.15 billion reline and upgrade of the No.6 Blast Furnace (6BF) at the Port Kembla Steelworks. 

FY2023 Financial Headlines

  • Reported NPAT: $1.01Bn
  • Underlying NPAT: $1.10Bn
  • Underlying EBIT: $1.61Bn 
  • Underlying pre-tax ROIC: 14.6% 

Capital Management

  • Final dividend (fully franked): 25 cps
  • On market buy-back: up to $400M (1)

Key Documents

ASX Release       Investor Presentation      4E & Annual Report

Speaking to the financial performance of the business in FY2023, Managing Director and CEO, Mark Vassella said, “Underlying EBIT for the financial year was robust at $1.61 billion (2). This continued strong performance demonstrates the resilience of the business model, particularly in the context of volatile macroeconomic and industry cycles.” 

“Operating cash flow for the half year, after capital expenditure, was $1.34 billion (3). The balance sheet remains strong with $703 million net cash, positioning the Group well in a period of increased capital spending on projects that underpin sustainable earnings and growth.” 

“In FY2023, BlueScope delivered $518 million in shareholder returns through dividends and on market buy-backs. Today, the Board has approved a fully franked final dividend of 25 cents per share, and an increase to the share buy-back program, to allow up to $400 million to be bought over the next 12 months (1).” 

“We continue to make great progress on our growth ambitions, most notably in the US, with two strategic acquisitions and the expansion of our best-in-class North Star mini-mill completed in the last two years. In Australia, work has commenced on a new metal coating line in Western Sydney to meet future demand for our value-added products – the demand for which continues to grow, evidenced by a record level of COLORBOND® steel sales in FY2023.” 

“A key highlight this year was the announcement of an accelerated feasibility study to build a new electric arc furnace at New Zealand Steel’s Glenbrook plant. With a target of being operational by 2026, this NZ$300 million project will be co-funded by the New Zealand Government and will reduce New Zealand Steel’s Scope 1 and 2 greenhouse gas emissions by at least 45 per cent.”

“The Company’s robust performance in FY2023 is a testament to the entire 16,500-strong BlueScope team, who I thank for their continued efforts in finding innovative solutions to maintain safe and reliable operations, better serve our customers, and to support our local communities. The continuing strength in both our financial results and balance sheet have set us up well to simultaneously invest for a low carbon future, long term sustainable earnings, and deliver shareholder returns.” Mr Vassella said. 

Results for business segments

For more information on performance of our business segments, refer to our ASX Release.

Outlook for 1H FY2024

Underlying EBIT in 1H FY2024 is expected to be in the range of $700 million to $770 million. Expectations are subject to spread, foreign exchange and market conditions. Refer to BlueScope’s FY2023 Investor Presentation for 1H FY2024 outlook assumptions and sensitivities. 



(1) In 2H FY2023, $165 million of stock was bought through the buy-back. The Board has today approved an increase to the buy-back program, to allow up to $400 million to be bought over the next 12 months. The timing and value of shares purchased will be dependent on the prevailing market conditions, share price and other factors.

(2) Underlying financial results for FY2023 reflect the Company’s assessment of financial performance after excluding (pre-tax): asset impairment ($50.0 million), legal provisions ($45.0 million), business development costs ($30.4 million), operating disruptions relating to storm damage at a site ($3.4 million) and a gain on discontinued operations ($8.5 million). A full reconciliation of underlying adjustments is available in the FY2023 Annual Report on BlueScope’s website.

(3) Cash flow before investment expenditure and financing.