BlueScope Steel Limited (ASX: BSL), a steel building products company, announced Asia and North America investor presentation on 26th March 2019. The company’s product portfolio expands to the market of North-America, Australasia, and Asia through different projects.
North Star mini-mill is a best class North-American mill located in Delta, Ohio and produces high-quality HRC (hot-rolled coil) for the automotive, construction and manufacturing industries.
The company has its footprints across different regions for various other such projects like Buildings North America which provides Engineered Building Solutions (EBS) in North America to industrial and commercial sectors through the brands such as BUTLER and VARCO PRUDEN.
In Australia, the Australian Steel Products segment provides branded steel products to the building and construction industry with key brands such as COLORBOND steel, ZINCALUME steel, and LYSAGHT. The company exports and provides branded flat and long products to the domestic market in the Pacific region through New Zealand and Pacific Steel segment. Building Products Asia and North America provide footprints to the company in the Asia Pacific region through various Joint Ventures (JV).
The total CY2018 EBIT of the company was $1,595 million and a spilt by region represented that the 49% of the EBIT ($840 million) was from North America, where the company operates North Star mini mill and Building North America. Out of total EBIT of $1,595M, Australia accounted for 38% ($640M) of the total EBIT, and the rest contributed by Asia and New Zealand & Pacific.
As per the company, BlueScope Steel maintains high safety and operates within the financial principles, which includes meeting net cash targets and retaining strong credit metrics with the company aiming at distributing 50% of the free cash flow either as a dividend or on market buybacks.
Operational and Financial progress over the Last five years:
The company acquired the 100% ownership of the North Star in the tenure of 5 years; it controlled only half of the project (50%) in CY2014. BlueScope also decreased the ASP steelmaking breakeven spread by approx. U$100 per tonne.
The underlying EBIT of the company improved by $1,313 million, increasing from $282 million in CY2014 to $1,595 million in CY2018. The ROIC also grew by 18.2%, from 5.7% in CY2014 as compared to 23.9% in CY2018. The earning per share (EPS) during the 5-year tenure increased by 178 cents per share. The EPS was at 203cps in CY2018 as compared to just 25cps in CY2014.
The company reported the underlying EBIT of $850 million in 1HFY19, up by $326 million as compared to the previous corresponding period (1HFY2018). The company’s NPAT surged to $624 million, up by $183M as compared to 1HFY18.
BlueScope Limited generated a free cash flow of $493 million in 1HFY19, up by $347 million as compared to 1HFY18. The company distributed an interim dividend of 6.0 cents per share. The net cash for the period 1HFY19 remained at #128 million, up from $64 million reported on 30th June 2018.
The company received strong results from North Star and reported the revenue at $411.6 million from the mini-mill in North America, up by 183% as compared to 1HFY18. The company also realized high revenue from Australian Steel Products and reported it at $319.0 million in 1HFY19, up by 22% as compared to 1HFY2018. The company posted an overall strong 1HFY19 results.
BlueScope Limited also updated on the daily on-market share buyback for which it submitted the Appendix 3C at ASX on 3rd December 2018. The company mentioned that 275,000 shares were brought back on the previous day with a total consideration payment of $3,696,687.50.
The shares of the company are trading at A$13.395 (as on 26th March 2019, 03:10 PM).
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.