Steelmaker BlueScope has reported a more than $1 billion fall in first-half net profit as economic conditions depress steel prices.
BlueScope on Monday posted a first-half net profit after tax of $599 million, a $1.045 billion decrease on a year earlier.
Shares in BlueScope tumbled 10.7 per cent, or $2.13, to $17.69 in morning trade.
CEO Mark Vassella said underlying earnings before interest and taxes (EBIT), an indicator of profitability, was robust at $851 million in the context of softening macroeconomic conditions compared to the previous financial year.
"This result demonstrates the resilience of our diversified business model, as the strength in many of our downstream businesses and operations partly offset the impact of steel spreads softening from record levels," he said.
BlueScope said it continued to progress a range of decarbonisation initiatives, including new steelmaking technologies, but warned against proposed changes to federal emissions safeguard laws.
"The proposed reforms, if enacted in their current form, may have a material impact on businesses with large industrial facilities, including the Australian Steel Products business," BlueScope said.
The company said it was engaging with the federal government on the proposed settings.
The final safeguard reforms are due to take effect on July 1, if passed by parliament.
"Until that time, it is too early to state, with any certainty, the potential implications of such reforms on Australian Steel Products and the feasibility study of the No.6 blast furnace reline and upgrade," BlueScope said.
The board approved a dividend of 25 cents per share, which was the first franked dividend since 2018, having now exhausted Australian tax losses and recommenced tax payments.
In the first half of FY2023, $120 million of stock was bought through a buy-back.
An extension of the buy-back program announced on Monday will allow up to $380 million to be bought over the next 12 months.
