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OJSC PhosAgro (PHOR)
PhosAgro Board Identifies Development Priorities for 2019
24-Oct-2018 / 17:45 CET/CEST
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For Immediate Release 24 October 2018
PhosAgro Board of Directors Identifies Development Priorities for 2019 and
Discusses Sales Strategy Through 2025
Singapore - 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, heard a report on the
implementation of the Company's current sales strategy, as well as on the
status of the long-term fertilizer sales strategy through 2025 that is
currently under development.
The Board of Directors meeting took place today in Singapore, where PhosAgro
Asia, PhosAgro's first international trading company, was launched exactly
five years ago. Since then the Company has opened eight more international
trading companies in its priority export markets. As a result, PhosAgro's
share of direct sales currently exceeds 90%, compared to a 53% share five
years ago.
At the meeting, PhosAgro CEO and Board of Directors member Andrey Guryev
noted, "despite the fact that PhosAgro's products are in demand in 100
countries around the world, the Russian fertilizer market, where the company
is the largest supplier of all types of fertilizers* and where we sell our
largest volumes, will always remain the Company's strategic priority. Of the
6.9 million tonnes sold in the first nine months of this year, 2.1 million
tonnes (30%) was supplied to the Russian market; 1.53 million tonnes (22%)
was supplied to Europe; 1.47 million tonnes (21%) was supplied to Latin
America. Granulated urea sales rose at the fastest pace."
The long-term sales strategy to 2025 is due to be finalised for
consideration by the Board of Directors at one of its upcoming meetings.
This stratey, which will include strengthening PhosAgro's presence in Russia
and in premium foreign markets, increasing the number of grades, including
innovative and specialised fertilizers, expanding fertilizer application
consulting services, as well as expansion into sales of accompanying
products, including feed additives.
The Board of Directors identified priority development areas for PhosAgro in
2019, taking into consideration information regarding progress on
implementation of the Company's 2018 priority development areas.
PhosAgro CEO and Board of Directors member Andrey Guryev said: "As in
previous years, PhosAgro will continue to focus on increasing operating
efficiency as well as reducing production costs through implementing
advanced solutions and best available techniques in order to remain one of
the world's most efficient fertilizer producers.
"A well-considered strategy will enable the Company to introduce new
production capacities that will ensure stable cash flows over the long term.
We will balance investing in strengthening our competitiveness with paying
out good dividends and implementing social and charity programmes.
"Our forecast for capital expenditure for the current year remains at RUB
32-33 billion. In Kirovsk, we are completing projects to expand the
apatite-nepheline factory No. 3 (ANOF-3) with a target capacity of 9 million
tonnes, the construction of a complex for the production of phosphate rock
at ANOF-2 and the construction of a conveyor to transportat rock mass at the
Vostochny mine. In Balakovo, an ammonia pipeline was recently commissioned,
the sulfuric acid plant has been modernised and the target P2O5 capacity was
achieved at the phosphoric acid extraction shop #4. In Cherepovets, projects
are underway for the construction of new advanced sulfuric and nitric acid
production facilities, ammonium sulfate and a raw materials warehouse."
For further information please contact:
PhosAgro
Timur Belov, Press Officer
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134
About the Company
PhosAgro is one of the world's leading vertically integrated phosphate-based
fertilizer producers in terms of production volumes of phosphate-based
fertilizers and high-grade phosphate rock with a P2O5 content of 39% and
higher.
The Company is the largest phosphate-based fertilizer producer in Europe (by
total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of
high-grade phosphate rock with a P2O5 content of 39%, a top-three producer
of MAP/DAP globally, one of the leading producers of feed phosphates (MCP)
in Europe, and the only producer in Russia, and Russia's only producer of
nepheline concentrate (according to the RAFP).
PhosAgro's main products include phosphate rock, 39 grades of fertilizers,
feed phosphates, ammonia, and sodium tripolyphosphate, which are used by
customers in 100 countries spanning all of the world's inhabited continents.
The Company's priority markets outside of Russia and the CIS are Latin
America, Europe and Asia.
PhosAgro's shares are traded on the Moscow Exchange, and Global Depositary
Receipts ("GDRs") for shares trade on the London Stock Exchange (under the
ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in
the MSCI Russia and MSCI Emerging Markets indexes.
More information about PhosAgro can be found on the website: www.phosagro.ru
[1]
*by total volumes of fertilizer sales and storage capacities
ISIN: US71922G2093
Category Code: ROM
TIDM: PHOR
LEI Code: 635400F8A3KGJIIBIK95
Sequence No.: 6319
EQS News ID: 737385
End of Announcement EQS News Service
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(END) Dow Jones Newswires
October 24, 2018 11:45 ET (15:45 GMT)
