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PJSC PHOSAGRO - PhosAgro Board Recommends DividendsPJSC PHOSAGRO - PhosAgro Board Recommends Dividends
PR Newswire
London, November 21
| For Immediate Release | 21 November 2017 |
PhosAgro Board Recommends Dividends
Moscow – The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, held a meeting at the Company’s Cherepovets production site. At this meeting, the Board recommended that an Extraordinary General Meeting of Shareholders (“EGM”) approve a dividend in the amount of RUB 2.72 billion, or RUB 21 per ordinary share (RUB 7 per global depositary receipt) from the Company’s undistributed net income as of 31 December 2016.
The Board of Directors made its recommendation after discussion of the Company's financial and operational performance for the first nine months of 2017, including the interim consolidated IFRS financial statements, which will be published on 22 November 2017.
Members of the Board of Directors also heard information on the Company's strategic priorities for 2018, presented by PhosAgro CEO Andrey Guryev:
"We will continue to increase production efficiency at each of our sites in every region where we operate, with a focus on continuous improvements. We will conduct an audit of Apatit’s ore deposits and study ways to further enhance the efficiency of our mining operations. We are also in the process of working out an integrated strategy through 2025 for the development of internal logistics, as well as a large-scale programme for the introduction of new technologies.
“We plan to allocate about RUB 25 billion annually for capital expenditure in 2018 and 2019. Among our priority investment projects are the construction of new sulphuric and nitric acid production facilities, as well as ammonium sulphate capacity that should be completed in 2019 at PhosAgro’s Cherepovets production site. We aim to expand the capacity of Beneficiation Plant #3 in Kirovsk to 9 million tonnes by 2018. Overall, we plan to increase capacities from 2016 levels by around 25%, with fertilizer output of 9.2 million tonnes planned for 2020, including the new ammonia and granulated urea lines that are due to be launched.”
During the visit to Cherepovets, the members of the Board of Directors visited the Company’s new high-tech ammonia production plant with a capacity of 760 ths tonnes per year and the new granulated urea line with a capacity of 500 ths tonnes per year, as well as social infrastructure. PhosAgro invested over RUB 65 billion into the construction of the new production facilities, which are due to be officially launched in the near future.
Sven Ombudstvedt, Independent Director and Chairman of the Board of Directors of PhosAgro, said: "I think that I speak for all of the Board’s Independent Directors when I say that we were very impressed with the production facilities that we saw today. These new capacities adhere to the highest standards of quality, implement the best available technologies and meet the most stringent environmental requirements. All of this strengthens PhosAgro’s leading position in Russia and globally. These facilities will help the Company to maintain stable cash flows over the long term, while it continues to pay solid dividends to shareholders and invest in new projects to increase its competitiveness.”
The Board of Directors at its meeting also heard information from the chairs of the Committees of the Board of Directors on the work of the relevant Committees during the third quarter of 2017, the methodology and timetable for carrying out the self-assessment for 2017, as well as the work plan of the Board for 2018
In addition, the Board of Directors took note of information on the development of the project management system and the main aspects of ensuring cybersecurity at PhosAgro’s enterprises, the results of monitoring of key risks in the third quarter of 2017, and approved a related party transaction.
For further information please contact:PhosAgroAlexander Seleznev, Head of Investor Relations Department+7 495 232 9689 ext 2187ir@phosagro.ruTimur Belov, Press OfficerAnastacia Basos, Deputy Press Secretary+7 495 232 9689EMSam VanDerlipvanderlip@em-comms.com+44 7554 993 032+7 499 918 3134Notes to Editors
PhosAgro (www.phosagro.ru) is one of the world’s leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of not less than 37% (according to IFA, Fertecon and CRU).
The Company is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock (with a P2O5 content of not less than 37%) worldwide and the third largest MAP/DAP producer in the world, according to IFA. PhosAgro is also one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia. PhosAgro is Russia’s only producer of nepheline concentrate.
PhosAgro’s main products include phosphate rock, over 35 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 100 countries spanning all of the world’s inhabited continents. The Company’s priority markets outside of Russia and the CIS are Latin America, Europe and Asia.
PhosAgro’s shares are traded on the Moscow Exchange, and global depositary receipts (“GDRs”) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company’s GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.