Moscow – The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has declared the Company’s operating and financial results for 2022 a success.
In summarising the results of the Company’s operations in 2022, PhosAgro CEO Mikhail Rybnikov said:
“Last year, we able to continue our strong growth despite external challenges. We made considerable progress in production and sales and in the implementation of our investment programme.
“We set a new all-time record in 2022: our enterprises produced 11.1 million tonnes of agrochemical products, an increase of nearly 5% from 2021. This result was made possible thanks to the professionalism of our entire workforce and continuous large-scale investments in the Company’s fixed capital. Last year, we took another confident step towards achieving our 2025 strategic objectives.
“As part of our long-term development strategy in 2022, industrial testing began at our Kirovsky mine’s new +10 m level. It is going to compensate for levels that are being shuttered and will not only maintain the mine’s overall output volumes but will also increase them from 22.8 million tonnes in 2021 to 25 million tonnes of ore by 2025. In early 2022, our Cherepovets site began operating its upgraded aluminium fluoride shop with increased capacity. In April, the main works were completed to increase the design capacity of the third ammonia production line to 107%. As part of the next stage in the strategic development of our Balakovo facility, a phosphoric acid storage facility was built in 2022, and the main construction and installation works were completed to increase the facility’s production capacity for granular ammonium sulphate – a unique fertilizer brand that, in Russia, is produced only in Balakovo – to 360 thousand tonnes per year. The first batch of water-soluble MAP, an innovative product in high demand among farmers, was produced during pilot testing in Volkhov. In total, we invested a record RUB 63 billion last year, a third more than in 2021.
“In 2023, we are going to raise the bar even higher, with planned capex expected to reach nearly RUB 67 billion. 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 projects to support capacities for the production of ammonia, phosphoric acid and sulphuric acid, a project to increase the processing of phosphate rock under development. In Balakovo, we are going to complete projects to increase the production of feed phosphates and sulphuric acid by the end of the year, and we are also starting the third stage in the development of the production facility by establishing a flexible arrangement for the production of MAP/DAP/NPS/NPK fertilizers. Our new million-tonne plant in Volkhov is expected to reach design capacity in 2023. Furthermore, the possibility of building new facilities for the production of ammonia and urea in Cherepovets and Volkhov is being analysed.
“Thanks to the consistent implementation of our investment programme, we can expect a further increase in the production of agrochemical products in 2023. Our workforce laid the groundwork for this in January–February, as we increased production of phosphoric acid and sulfuric acid by 22% and 17% year-on-year respectively over this period.”
“Our steadily increasing production has enabled us not only to make a key contribution to ensuring national food security but also to ensure that our employees are paid decent wages: in 2021, the average salary increased by 10%, and salaries were indexed by a further 12% in February 2022 (the average salary rose by 22%). This was an important step in supporting the social safety net and maintaining stability in the regions where we operate. Our tax payments at all levels rose by 50% last year to over RUB 59 billion. This year, we will continue to fulfil all our obligations in terms of social development in the regions where we operate, having provided a record amount of support for social and charitable projects last year, increasing the amount of funds allocated for these purposes by nearly 150% (RUB 12.9 billion). Thus, our traditional commitment to ESG principles will remain a top priority,” said Viktor Cherepov, Chairman of PhosAgro’s Board of Directors.
The Board of Directors took note of the Company’s 2002 financial results as well as its consolidated IFRS financial statements for 2022. The Board also took note of the Company’s annual financial statements for 2022.
The Board of Directors also recommended that the Annual General Meeting of Shareholders (AGM) allocate a portion of the Company’s retained earnings for dividend payments, at the rate of RUB 465 per ordinary share. It was recommended that the AGM confirm 4 April 2023 as the dividend record date.
In addition, a list of candidates for election to PhosAgro’s Board of Directors at the AGM was approved, as was a list of candidates for the Company’s Audit Commission.
The agenda for the AGM will include the approval of the Company’s annual report and annual financial statements for 2022; the distribution of profits, including the payment of dividends, and losses based on the Company’s 2022 results; the election of members of the Board of Directors and the payment of remuneration and compensation to members of the Board of Directors; the election of members of the Audit Commission; and the approval of the Company’s auditor for 2023.