Steelmaker brings it home, after rejecting predators

Australia's largest steelmaker, BlueScope Steel, has delivered a significant increase in annual profit, reaffirming their decision to reject a takeover bid. The company reported a net profit of $802 million for the year ended June 30, marking an 857% jump. However, this figure was skewed higher after an impairment charge from the previous year was removed.

The underlying result, before interest and tax, reached $1.27 billion, up 73% from the previous year. This growth was driven by strong performances in premium and pre-painted steel products, particularly COLORBOND and TRUECORE structural steel used in construction. Despite receiving a $15 billion takeover offer from SGH and Steel Dynamics, BlueScope's CEO, Tania Archibald, maintained that the bid undervalued the company's assets and potential.

The North America operations, including the North Star steelmaking mill in Ohio, contributed heavily to the underlying earnings, up 100% to $1 billion. BlueScope anticipates solid momentum in the upcoming fiscal year, with targeted first-half earnings ranging between $860 million and $960 million. The company will pay a final dividend of 65 cents, totaling a $1.30 dividend for the year, followed by two special dividends of 70 cents each.

Archibald highlighted the importance of gas market reforms and domestic gas reservation as crucial for mitigating energy price impacts during the energy transition.