The BlueScope Steel Limited (ASX: BSL) share price has made a steady recovery since it lost more than 20% in a day in August.
The devastating drop came amid the announcement of the imminent departure of CEO Paul O'Malley, a softer outlook for FY18 and allegations of price fixing prompting an investigation by the competition watchdog the ACCC.
But the Bluescope share price continues to recover from the August slump when it plunged to $10.66.
Shares in Australia's biggest steel producer closed on Wednesday at $12.60, down 1% on the previous day's trade but up 18% on its August low.
Bluescope, with a market cap of $7 billion, is trading at 10x earnings, significantly below the ASX average.
The steel producer, with operations in Australia, New Zealand, North America and Asia, reported a net profit after tax of $715.9 million for FY17, up more than 100% on the previous year.
Bluescope also reported that it ended FY17 with cash flow of about $750 million and is pressing ahead with its share buyback plan.
With dust seemingly settled on news of long-serving CEO Paul O'Malley's departure and the revised FY18 outlook, the Bluescope share price has made a comeback.
And, with Parliament recently passing anti-dumping legislation, which should provide Bluescope with a stronger position in the domestic market compared to foreign competitors, things are looking better for Bluescope.
Bluescope, like many Australian companies, has been hit by rising energy cost.
But, in his last address to shareholders as CEO, Paul O'Malley said last month that he is hopeful political developments will have a positive impact on Bluescope.
"The Prime Minister announced on Wednesday 27 September that domestic gas supply will meet the expected shortfall over the next two years," Mr O'Malley said at the Bluescope AGM.
"This is good news, as it means the start of a properly functioning gas market – one where prices can be expected to moderate as more sellers meet customers' demand and commercial offerings reflect global markets."
In the past year Bluescope's share price has gained about 64%.
And, while Bluescope has fallen short of the gains enjoyed by Bisalloy Steel Group Limited (ASX: BIS), it has outpaced others in the sector, such as Alumina Limited (ASX: AWC) and South32 Ltd (ASX: S32).
