Australian steelmaker BlueScope Steel has posted a net profit of A$2.81 billion ($1.97 billion) for the financial year 2021-22 ended on June 30, increasing by A$1.62 billion or 135 percent compared to a net profit of A$1.19 billion in the previous financial year. The company attributed the increase in its net profit to strong demand and higher steel prices.
Meanwhile, BlueScope’s underlying EBIT in the given year was A$3.79 billion ($2.66 billion), a record result in the company’s 20-year history as a listed company. On the other hand, the company recorded an EBIT of A$1.58 billion ($1.11 billion) in the second half of the financial year 2021-22, its second best half-year result after A$2.2 billion ($1.54 billion) recorded in the first half of the same financial year.
BlueScope’s domestic sales in the financial year 2021-22 exceeded 2.5 million mt again despite the supply chain disruptions related to the weather and pandemic. Meanwhile, demand across the local construction, distribution and manufacturing segments remained strong.
BlueScope’s managing director and CEO Mark Vassella said that, within the scope of their US growth plan, they made investments of $1 billion in the US by acquiring MetalX’s ferrous recycling and coil coatings businesses.
The company expects underlying EBIT to be in the range of A$800-900 million in the first half of the financial year 2022-23.