Bluescope Steel confirmed yesterday its lowered guidance for the December half and for 2019-20 while also warning that its China operations are likely to be “heavily impacted” by disruptions stemming from the coronavirus in February and March.
BlueScope Steel has changed tack and will now take on more debt to help finance its US expansion - that’s a move that will see the company no longer target cash retention and instead see a gearing up of its balance sheet.
BlueScope Steel’s forthcoming 2018-19 results have been given a small whacking by the combination of Donald Trump’s steel trade/tariff war causing global steel prices to soften and the rise in global iron ore prices.
On Citi's assessment, BlueScope Steel released a better-than-expected interim performance, but also provided soft guidance for H2. Coronavirus uncertainty rules. The analysts believe market sentiment will likely remain weak for the time being.
BlueScope Steel has set a bold target of reducing its carbon intensity by -1% per annum by 2030, UBS notes. To achieve this, every site has a plan and the majority of the reduction will be led by Port Kembla. Port Kembla is expected to use cleaner coal and higher-grade iron ore.
BlueScope Steel has confirmed first half guidance for earnings (EBIT) around $275m. Earnings drivers, including US and Asian steel spreads, are in line with assumptions provided in the original guidance.