Vulcan Steel share price dips despite record year

Life as an ASX-listed company began with a bang for Vulcan Steel in November 2021 and now it's reported record results.

| More on:
A fit man flexes his muscles, indicating a positive share price movement on the ASX market

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Vulcan Steel claims a "record performance" in FY22 
  • Net profit after tax is up 91% 
  • ASX shareholders of the dual-listed company will receive a final dividend of 42.8 NZ cents per share, equating to 38 AU cents per share  

The Vulcan Steel Ltd (ASX: VSL) share price is 1% in the red despite the company boasting a "record performance" in FY22, according to its full-year results announcement today.

Vulcan is an Australasian steel and metal products distributor and processor. It was dual-listed on the ASX and New Zealand's Exchange (NZX) in November last year.

The Vulcan Steel share price opened Wednesday's session at $8.40 — a 1.95% increase from yesterday's closing price of $8.24. Over the day, the shares have deteriorated to as low as $8.01.

At the time of writing, the shares have regained some ground and are swapping hands for $8.17. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.56% for the day so far.

Vulcan Steel share price down despite record result

The highlights of the report are as follows:

What else happened in FY22?

Vulcan Steel started trading on the ASX on 4 November 2021 after a successful initial public offering (IPO) to raise AU$371.6 million at a share price of AU$7.10.

By year's end, the Vulcan Steel share price was up 27.5%.

Vulcan Steel became part of the All Ords index during the March 2022 quarter rebalance. The All Ords represents the top 500 companies on the ASX by market capitalisation.

Also, in March, the company won New Zealand's 2021 Deloitte Top 200 Award for 'best growth strategy'. This gave the Vulcan Steel share price a 2% boost on the day.

What did management say?

Commenting on the results, Vulcan Steel managing director and CEO Rhys Jones said:

Notwithstanding the disruptions caused by COVID-19 and major floods across parts of Queensland and New South Wales during the year, Vulcan's FY22 adjusted NPAT of approximately NZ$142m exceeded our prospectus forecast by 89%.

The strong FY22 performance has enabled the company to invest in our staff, working capital and processing capacity and support the debtfunding for our acquisition of Ullrich to position the company for long term growth.

What's next?

Vulcan Steel says rising interest rates and ongoing COVID-19 disruptions in some major markets are "likely to temper global economic activity and demand for steel and metal products".

The company said:

For Australia and New Zealand, Vulcan expects a more challenging industry environment in FY23 due to the impact of higher interest rates. New Zealand business confidence remains weak while in Australia economic activity appears more resilient for now. Some normalisation in industry margins will likely occur in FY23.

Vulcan's FY23 EBITDA guidance of NZ$215m-NZ$235m reflects these business cycles and industry headwinds.

… Vulcan's FY23 NPAT is expected to be in the range of NZ$93m-NZ$107m compared with NZ$142m achieved in FY22.

Vulcan Steel share price snapshot

The Vulcan Steel share price is down 14% in the year to date alongside a 9% drop in the All Ords index.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Happy shopper at a clothes shop.
Earnings Results

Why did Myer shares just rocket 9%?

Investors are piling into Myer shares on Friday. But why?

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Industrials Shares

Guess which ASX 200 stock is crashing 24% on results day

Investors were not impressed with this result. But why?

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
Consumer Staples & Discretionary Shares

Why is the Kogan share price crashing 12%?

Profits are down at this ecommerce company during the second half.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

Up 50% in a year, are Xero shares a buy after Thursday's earnings results?

ASX investors reacted positively to Xero’s full-year earnings results on Thursday. Now what?

Read more »