Singapore - The Board of Directors of PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, heard a report on the implementation of the Company’s current sales strategy, as well as on the status of the long-term fertilizer sales strategy through 2025 that is currently under development.
The Board of Directors meeting took place today in Singapore, where PhosAgro Asia, PhosAgro’s first international trading company, was launched exactly five years ago. Since then the Company has opened eight more international trading companies in its priority export markets. As a result, PhosAgro’s share of direct sales currently exceeds 90%, compared to a 53% share five years ago.
At the meeting, PhosAgro CEO and Board of Directors member Andrey Guryev noted, “despite the fact that PhosAgro’s products are in demand in 100 countries around the world, the Russian fertilizer market, where the company is the largest supplier of all types of fertilizers* and where we sell our largest volumes, will always remain the Company’s strategic priority. Of the 6.9 million tonnes sold in the first nine months of this year, 2.1 million tonnes (30%) was supplied to the Russian market; 1.53 million tonnes (22%) was supplied to Europe; 1.47 million tonnes (21%) was supplied to Latin America. Granulated urea sales rose at the fastest pace.”
The long-term sales strategy to 2025 is due to be finalised for consideration by the Board of Directors at one of its upcoming meetings. This stratey, which will include strengthening PhosAgro’s presence in Russia and in premium foreign markets, increasing the number of grades, including innovative and specialised fertilizers, expanding fertilizer application consulting services, as well as expansion into sales of accompanying products, including feed additives.
The Board of Directors identified priority development areas for PhosAgro in 2019, taking into consideration information regarding progress on implementation of the Company’s 2018 priority development areas.
PhosAgro CEO and Board of Directors member Andrey Guryev said: “As in previous years, PhosAgro will continue to focus on increasing operating efficiency as well as reducing production costs through implementing advanced solutions and best available techniques in order to remain one of the world’s most efficient fertilizer producers.
“A well-considered strategy will enable the Company to introduce new production capacities that will ensure stable cash flows over the long term. We will balance investing in strengthening our competitiveness with paying out good dividends and implementing social and charity programmes.
“Our forecast for capital expenditure for the current year remains at RUB 32-33 billion. In Kirovsk, we are completing projects to expand the apatite-nepheline factory No. 3 (ANOF-3) with a target capacity of 9 million tonnes, the construction of a complex for the production of phosphate rock at ANOF-2 and the construction of a conveyor to transportat rock mass at the Vostochny mine. In Balakovo, an ammonia pipeline was recently commissioned, the sulfuric acid plant has been modernised and the target P2O5 capacity was achieved at the phosphoric acid extraction shop #4. In Cherepovets, projects are underway for the construction of new advanced sulfuric and nitric acid production facilities, ammonium sulfate and a raw materials warehouse.”