Moscow – The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has approved the Company’s main budget parameters for the year ahead.
The Board of Directors also called an Extraordinary General Meeting of Shareholders (“EGM”) to be held by absentee ballot on 22 January 2019. Among the approved agenda items for the EGM are a dividend recommendation and changes to the charter that would expand the responsibilities of the Management Board of PJSC PhosAgro and, if approved, would lead to greater efficiency of business processes inside the PhosAgro corporate structure.
The dividend recommendation of RUB 9.324 billion, which represents RUB 72 per ordinary share (RUB 24 per global depositary receipt), was made by the Board on 20 November 2018. The record date for the EGM was set as 29 December 2018.
PhosAgro CEO Andrey Guryev said: “The Company’s primary financial document, which was adopted today, reflects PhosAgro’s commitment to continued growth through further production capacity expansion and greater vertical integration. Capital expenditure for next year has been forecast at the level of RUB 34 billion (excluding capitalised repairs). Key projects include further development of the mining segment and processing facilities, including completion of new sulphuric and nitric acid plants in Cherepovets with an increase in the production of phosphate fertilizers, as well as the expansion of our own distribution and logistics infrastructure. Together with our moderately positive view of the main macro parameters (prices for fertilizers, exchange rates and inflation), this gives us every reason to expect further strengthening of operating profitability, improved key creditworthiness indicators and increased dividend payments.
In addition, the Board of Directors approved the Company’s Risk Management and Internal Control policies, a new edition of the Company’s Corporate Governance Codex, and the Internal Audit Department’s work plan for the year ahead.