Australian steelmaker BlueScope Steel has posted a net profit of A$330.3 million ($259.64 million) for the first half of the financial year 2020-21 ended on December 31, increasing by 78 percent compared to a net profit of A$185.8 million in the first half of the previous financial year. The company attributed the increase in its net profit to the higher underlying EBIT. The company’s sales revenues in the given period decreased by one percent year on year to A$5.82 billion ($4.57 billion), due to lower selling prices, largely offset by the benefit of improved volumes from stronger demand.
Meanwhile, BlueScope’s underlying EBIT in the given year rose by 75 percent year on year to A$530.6 million ($417.01 million) due to stronger steel spreads and lower costs.
As for the second half of the financial year 2020-21, the company expects orders and shipments in key markets to remain robust. Spot steel spreads in North America are higher than both the first half of the given financial year and longer-term averages. The company stated that it is uncertain whether these conditions will be sustained throughout the half due to volatile market factors, including potential impacts of the coronavirus which could disrupt demand, supply chains and operations. The company expects underlying EBIT to be in the range of A$750-830 million in the second half of the financial year 2020-21.