BlueScope Steel Updates on Progress of North Star Mini-mill Expansion

SEATTLE (Scrap Monster): Australian flat product steel producer BlueScope Steel Limited announced results for 1H FY2020.

The company delivered net profit after tax (NPAT) of $185.8 million, which is significantly lower by 70% when compared with the corresponding year-ago period. Also, it reported an underlying NPAT of $199.6 million. The underlying EBIT for the half at $302.4 million, too registered year-on-year decline, primarily on account of sharp decline in commodity steel spreads. The net debt as on December 31^st, 2019 stood at $47 million.

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Mark Vassella, Managing Director and CEO, BlueScope noted that the underlying EBIT of $302.4 million is creditable, especially in the light of the weak cyclical spreads.

Commenting on the flagship expansion project at North Star mini-mill in Delta, Ohio, Mr. Vasella said that the company is extremely pleased with the progress. The site works are progressing well and orders have already been placed for major OEM equipment, he added.

In its outlook for 2H FY2020, the company noted that the underlying demand remains stable across major markets. However, the economic impacts created by coronavirus outbreak have created uncertainty for its Asian business in the near term. BlueScope expects 2H FY2020 underlying EBIT to be similar to 1H FY2020.

The company announced that Charlie Elias, Chief Executive BlueScope Building Products Asia and North America has decided to leave the company effective early July this year. The board also approved interim dividend of 6 cents per share.