Moscow – 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, today recommended that the annual general meeting of shareholders (“AGM”) approve a dividend payment of RUB 1.943 billion, or RUB 15 per common share (RUB 5 per global depositary receipt), from the Company’s undistributed net profit for 2017.
The AGM will be held on 30 May 2018. The record date for shareholders eligible to participate in the AGM was set as 5 May 2018. The Board of Directors also approved the agenda of the AGM. The recommended record date for shareholders eligible to receive dividends is 13 June 2018.
The dividend recommendation was made following the Board of Directors’ review of PhosAgro’s consolidated IFRS financial statements for 2017, which will be disclosed tomorrow, 21 March 2018, as well as a general discussion about the financial results for the previous year. In addition, the Board of Directors took note of the statutory accounting statements for 2017 and submitted them for consideration to the AGM.
The meeting also reviewed the main results of the Company's operations in 2017: operating results, significant aspects of the activities of enterprises belonging to PhosAgro and responsible for the sale of mineral fertilizers in 2017. In addition, PhosAgro’s annual report for 2017 was submitted for approval by the AGM.
The Board of Directors recognised PhosAgro’s 2017 operating and financial results as successful. Summing up the results of the last year, PhosAgro CEO Andrey Guryev said: "In 2017, the Company achieved its best-ever growth in terms of production volumes, with total fertilizer ouput up by more than 12% year-on-year to more than 8.3 million tonnes. Phosphate rock production also reached its highest level in the last 25 years, at over 9.5 million tonnes.
"PhosAgro has maintained its position as the absolute leader in the supply of all types of fertilizers to the Russian market, where the Company sells more fertilizers than in any other country in the world, having increased fertilizer sales to Russian farmers by 12% year-on-year to a record 2.34 million tonnes. The Company’s range of products has also expanded with four new types of fertilizer bringing our portfolio up to 39 grades for different types of soils and climatic conditions.
“Last year, our company was the first and so far the only Grand Prix winner of the all-Russian competition Leaders of Russian Business: Dynamics and Responsibility; we topped the list of Russian companies with the best growth in labor productivity over the last five years according to Vedomosti; we also were listed in the the first ever Forbes rating of the best employers of the world, becoming one of four Russian companies in the TOP-500."
At today's meeting, information was provided on the work and results of the self-assessment of the the Board of Directors and its Committees in 2017. Also, the Management Board of PhosAgro was appointed, which included PhosAgro CEO Andrey Guryev, Apatit CEO and PhosAgro COO Mikhail Rybnikov, PhosAgro Deputy CEO for International Projects Siroj Loikov, PhosAgro Deputy CEO for Corporate and Legal Affairs Alexei Sirotenko, PhosAgro Director of Business Development Roman Osipov, PhosAgro CFO Alexander Sharabaika and Deputy CEO and Chief of Staff for the CEO of PhosAgro Alexander Gilgenberg. In addition, consent was given to members of the Management Board of PhosAgro to hold positions management bodies of other organisations.
In addition, information was provided on the assessment of the effectiveness of the Company's key risk management systems in the fourth quarter of 2017, the results of their reassessment and the update of the risk map for 2018.
The Board of Directors also approved a report on compliance with the principles and recommendations of the Corporate Governance Code for 2017, confirming that the Company adheres to the best standards and practices of corporate governance that provide all shareholders with an equal opportunity to exercise their rights.
The Board of Directors considered the issue of recognising as independent Sven Ombudstvedt and Marcus Rhodes, who are candidates for election to the new Board of Directors by the AGM, and who have been members of the Board of Directors since 2011. The Board of Directors recognised them as independent in accordance with the provisions of the Corporate Governance Code and the Listing Rules of the Moscow Stock Exchange, as well as taking into account the practice of their taking unbiased, independent and objective decisions that are in the interests of all shareholders and PhosAgro.
At today's meeting, a report was approved on related party transactions concluded in 2017.
FBK LLC has been recommended to the AGM for approval as the Company’s RAS auditor for 2018.