Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces that today an Extraordinary General Meeting of shareholders (“EGM”) has approved the payment of dividends in the amount of RUB 6,993 million, or RUB 54 per share, from the Company’s undistributed net profit as of 31 December 2018. The dividend record date has been set as 15 October 2019.
PhosAgro CEO and Board of Directors member Andrey Guryev said: “Good dividend payments are a result of the successful implementation of the Company’s strategy to 2020. PhosAgro has modernised its production facilities, increased efficiency and the environmental performance of its facilities and increased sales, which enabled it to generate consistently high cash flows.
“PhosAgro’s new strategy to 2025, which we presented at our Capital Markets Day in September, calls for further modernisation of existing and construction of new production facilities using best available techniques, as well as innovative and digital solutions. We will strive for greater vertical integration and self-sufficiency in feedstocks, higher production volumes of fertilizers and phosphate rock, and step up our efforts to increase efficiency and reduce costs. Once completed, these planned investments are expected to lead to higher EBITDA performance.
“At the same time, our new dividend policy, which was approved by the Board of Directors in September, will increase returns for PhosAgro’s shareholders. From 3Q 2019 on, dividend payments to shareholders will be based on the Company’s free cash flow instead of net profit, with the amount varying depending on the Company’s debt levels. The policy sets a minimum threshold of 50% of adjusted net profit, which was the upper limit of the old dividend policy. As before, we intend to maintain a balance between payment of dividends and reinvestment of profit into further development and servicing our debt, while also implementing social and charitable projects.”
PhosAgro CEO and Board of Directors member Andrey Guryev said: “Good dividend payments are a result of the successful implementation of the Company’s strategy to 2020. PhosAgro has modernised its production facilities, increased efficiency and the environmental performance of its facilities and increased sales, which enabled it to generate consistently high cash flows.
“PhosAgro’s new strategy to 2025, which we presented at our Capital Markets Day in September, calls for further modernisation of existing and construction of new production facilities using best available techniques, as well as innovative and digital solutions. We will strive for greater vertical integration and self-sufficiency in feedstocks, higher production volumes of fertilizers and phosphate rock, and step up our efforts to increase efficiency and reduce costs. Once completed, these planned investments are expected to lead to higher EBITDA performance.
“At the same time, our new dividend policy, which was approved by the Board of Directors in September, will increase returns for PhosAgro’s shareholders. From 3Q 2019 on, dividend payments to shareholders will be based on the Company’s free cash flow instead of net profit, with the amount varying depending on the Company’s debt levels. The policy sets a minimum threshold of 50% of adjusted net profit, which was the upper limit of the old dividend policy. As before, we intend to maintain a balance between payment of dividends and reinvestment of profit into further development and servicing our debt, while also implementing social and charitable projects.”