Moscow – At its meeting today, the Board of Directors of PhosAgro, one of the world’s leading producers of phosphate-based fertilizers, declared the ongoing implementation of the Company’s development strategy to 2025 a success.
CEO Mikhail Rybnikov reported on the implementation of the Company’s development strategy in 2022 and on the main areas of work undertaken in 2023.
“Last year and in the first quarter of 2023, we continued the implementation of our long-term development strategy, the foundation of which is the desire to constantly improve our production efficiency and to increase our output of eco-efficient products while sticking to our policy of sustainability and social responsibility.
“As a result of the consistent implementation of our strategic initiatives, we have gained the confidence of investors and made our shares a more attractive investment. Since our IPO in 2011, our capitalisation has grown nearly sevenfold – from RUB 150 billion to RUB 1 trillion. In terms of market capitalisation, PhosAgro is one of the 10 largest companies in Russia, Moscow Exchange’s so-called blue chips. Our total shareholder base has increased nearly 1,000 times since 2011, to more than 245,000 people.
“In the first quarter, we increased our output of agrochemical products by 6.1%, to more than 2.8 million tonnes. We were able to achieve this growth thanks primarily to the implementation of an investment project for the construction of a new production facility in Volkhov, which will reach its design capacity this year.
“We achieved considerable growth when it comes to phosphate-based fertilizers – MAP and DAP – as well as liquid complex fertilizers. Production of nitrogen-based fertilizers increased by 7%; phosphoric acid, by 16%.
“As part of the implementation of our large-scale investment programme, for which we have allocated a record RUB 67 billion this year, we continue both to develop our ore and raw material resources and to modernise and expand our production facilities.
“The second start-up complex for the 10th horizon at the Kirovsky mine is expected to come online by the end of the year. In Cherepovets, in addition to modernising our ammonia, phosphoric acid and sulphuric acid production facilities, we are going to launch a project this year to further increase the processing of phosphate rock.
“In Balakovo, projects to increase the production of feed phosphates and sulphuric acid will be completed by the end of the year, and the third stage in the development of the production facility, including the establishment of a flexible arrangement for the production of MAP/DAP/NPS/NPK fertilizers, is under way. In addition, the possibility of building new facilities for the production of ammonia and urea in Cherepovets and Volkhov is being analysed,” said the Company’s CEO.
The Board of Directors also recommended that an extraordinary general meeting of shareholders approve dividend payments at the rate of RUB 264 per ordinary share. The Board recommended 11 July 2023 as the dividend record date. The extraordinary general meeting of shareholders that will consider this issue will be held on 30 June 2023 by absentee voting.