The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically-integrated phosphate-based fertilizer producers, recommended a meeting on 28 April 2015 that the Annual General Meeting of Shareholders (“AGM”) approve a final dividend for 2014 of RUB 15 per share (RUB 5 per Global Depositary Receipt), or RUB 1.94 billion, from the Company’s undistributed profit. The Board also recommended setting 19 June 2015 as the record date for shareholders to be eligible to receive dividends.
The final 2014 dividend is in addition to interim dividends totalling more than RUB 5.82 billion for the first six and nine months of 2014. Pending AGM approval of the final 2014 dividend, PhosAgro will pay total dividends for 2014 of more than RUB 7.78 billion.
The Board of Directors also changed PhosAgro’s dividend policy to increase net profit available for distribution as dividends to a range of 30%-50%, from the 20%-40% range that the Company currently aims to pay out.
The Board also noted management’s plans for reducing the Company’s debt load during 2015 by approximately RUB 20 billion by using operating cash flows to decrease short-term borrowings.
PhosAgro CEO Andrey Guryev said: “With sustainable, robust cash flows, we are confident in our ability to continue implementing PhosAgro’s RUB 36 billion capital expenditure programme in 2015, while also reducing debt levels and paying out cash to our shareholders.”
At the meeting the Board of Directors also reviewed PhosAgro’s consolidated FY 2014 IFRS financial statements (which will be disclosed on 29 April 2015), approved the agenda for the 8 June 2015 AGM, gave preliminary approval to the Company’s annual report, and approved the text or the AGM notice as well as the forms and texts of the AGM ballots. The list of candidates for PhosAgro’s Russian Accounting Standards auditor for 2015 includes FBK.