The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, at its meeting today recommended that shareholders approve a dividend payment of RUB 8,158.5 million, or RUB 63 per share (RUB 21 per Global Depositary Receipt), from the Company’s unallocated net profit as of 31 March 2016.
The Board’s recommendation to the Extraordinary General Meeting of Shareholders (“EGM”) was made after reviewing PhosAgro’s financial and operating performance for Q1 2016, including the Company’s consolidated IFRS financial statements, which are due to be disclosed tomorrow, 25 May 2016.
The EGM, which will take place by absentee ballot, has been scheduled for 29 July 2016, and the record date for shareholders eligible to participate in the EGM is 24 June 2016. The Board has recommended that the record date for shareholders eligible to receive dividends be set as 10 August 2016.
PhosAgro CEO Andrey Guryev said: “Despite the challenging situation in fertilizer markets, the Company is in excellent shape; our financial performance and cash flows make it possible to recommend dividend payments while continuing to implement investment and social projects.”
At today’s meeting the Board of Directors also heard a report on the effectiveness of the Company’s KPI system, which PhosAgro has introduced to improve the results achieved by management.
The Board of Directors approved the organisation of monitoring of management of key risks in Q1 2016, and recommended that the Company’s CEO inform the Board of Directors about the results of this monitoring on a quarterly basis.
In addition, the Board took note of reports by the Committee Chairs on the results of their work during Q1 2016, and several related party transactions were approved.