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, acknowledged at its meeting today that the Company’s performance during the coronavirus pandemic has been effective.
PhosAgro CEO and member of the Board of Directors Andrey Guryev presented information about how the Company was responding to the pandemic and thanked the members of the Board of Directors for their ongoing dialogue, recommendations and sharing of international expertise in combatting the coronavirus.
Mr Guryev noted that PhosAgro’s absolute priority is to protect the health of its employees and of the residents of the cities where the Company operates, as well as to maintain the stable, uninterrupted operation of production facilities involved in ensuring national and global food security. PhosAgro has already spent over RUB 1.5 billion on measures to prevent the spread of COVID-19 both at company facilities and in support of medical and social infrastructure in the cities where it operates.
Mr Guryev said: “The comprehensive measures we have taken are having the desired effect. At the moment, we are performing fully in line with our production plan. Moreover, PhosAgro enjoyed record production and sales of mineral fertilizers in the first quarter, both of which increased by nearly 10% year-on-year. Sales of mineral fertilizers to our priority Russian market increased by 50% year-on-year.”
The Board of Directors discussed the Company’s 1Q 2020 financial performance and a draft of the revised 2020 budget, as well as the interim consolidated IFRS financial statements for 1Q 2020, which will be published on 14 May 2020. On the basis of these results, the PhosAgro Board of Directors recommended that an Extraordinary General Meeting of Shareholders (“EGM”) approve a dividend payment of RUB 10.101 billion, or RUB 78 per share (RUB 26 per global depositary receipt), from retained net income as of 31 March 2020.
The EGM will be held on 19 June 2020 by absentee ballot. The record date for shareholders eligible to vote in the EGM has been set as 25 May 2020. The Board of Directors approved the EGM agenda and recommended that 6 July 2020 be set as the record date for shareholders eligible to receive dividends.
The meeting also heard information from the chairs of the Board of Directors committees on the work of the respective committees in 1Q 2020 and on the results of the implementation of the Company’s information policy in 2019 and its main focus areas in 2020, as well as on the key aspects of ensuring the cybersecurity of PhosAgro enterprises.
In addition, the Board of Directors noted information on the Company’s work in the areas of energy efficiency, meeting regulatory requirements on occupational health and industrial safety in the operation of production facilities, as well as on compliance with environmental regulations and environmental safety in 2019.
The Board of Directors was also informed about the Company’s compliance with the provisions of Russian laws on protecting and sharing insider information and about the basic requirements for persons discharging managerial duties imposed by Russian and European laws.
Summing up the meeting, PhosAgro Board of Directors Chair Xavier Rolet said: “Thanks to successful implementation of its long-term development strategy, the Company has maintained a confident outlook on the future and stable dividend payments while continuing to finance new investment projects using best available technologies and implementing social and charity projects.”