OJSC PhosAgro (PHOR)
PhosAgro Board of Directors Recognises Company's Successful 2019 Results
20-Feb-2020 / 18:33 MSK
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For Immediate Release 20 February 2020
PhosAgro Board of Directors Recognises Company's Successful 2019 Results
The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the
world's leading vertically integrated phosphate-based fertilizer producers,
has declared that the Company's operational and financial results for 2019
were a success.
In summing up the results for 2019, PhosAgro Management Board Chairman, CEO
and Board of Directors member Andrey Guryev said:
"PhosAgro continues its confident development as a result of the potential
created by the previous investment cycle, as well as ongoing work to achieve
further efficiency gains across its production sites.
"Our vertical integration provides for a high degree of self-sufficiency in
key inputs, which has enabled PhosAgro to remain one of the most efficient
enterprises in the industry globally. This has allowed us to remain in a
comfortable position during what has been a difficult period for many
industry players, marked by low prices in global fertilizer markets.
"In 2019, PhosAgro's enterprises produced a record volume of mineral
fertilizers and feed phosphates, which rose by 6.1% year-on-year to more
than 9.5 million tonnes and is fully in line with previously announced
plans. Phosphate rock and nepheline concentrate production grew by 5.8%
year-on-year to a record 11.7 million tonnes.
"Sales volumes to our priority domestic market and to other CIS countries
surpassed 3 million tonnes for the first time in history, rising by 10.5%
and 65%, respectively. Today, according to the Russian Fertilizer Producers
Association, 35% of all mineral fertilizers purchased by Russian farmers are
produced by PhosAgro. At the same time, during the past year we continued to
work on expanding our distribution network, which is the largest in Russia,
by opening three new regional centres. Today PhosAgro sells its products
directly to farmers in 71 Russian regions, from Kaliningrad to Vladivostok.
PhosAgro has also strengthened its position in the key European market, with
sales volumes increasing by 28% year-on-year to 2.6 million tonnes.
"PhosAgro was awarded as a 'Leader of the Commodities Trading Market' for
its contribution to the development of exchange-based trading of mineral
fertilizers in Russia. According to the St Petersburg International
Mercantile Exchange, around 40% of mineral fertilizers sold on the exchange
in 2019 were from PhosAgro.
"We have continued to treat efforts to integrate the UN's Sustainable
Development Goals (SDGs) into our operations as a priority. In May 2019,
PhosAgro's Board of Directors established a Sustainable Development
Committee, which is headed by Irina Bokova, an independent director with
unique expertise in this field and who previously served as the
Director-General of UNESCO.
"While recognising the importance of all 17 SDGs, PhosAgro supports UN
efforts by directly contributing to 10 of them. In September 2019, PhosAgro
was granted LEAD status for its commitment to the UN Global Compact (an
international initiative for socially responsible businesses) and its 10
principles for responsible business. PhosAgro was recognised as one of 36
global companies making the greatest contribution to sustainable
development.
"PhosAgro is an active participant in projects to create the Green One
standard for Russian agricultural products with improved environmental
characteristics. In particular, in support of the Green One standard,
PhosAgro initiated the idea of eco-labelling, which has been supported by
all members of the Russian Fertilizer Producers Association, confirming the
high environmental characteristics of Russian-made mineral fertilizers. In
January, we presented the eco-label and a new packaging design for our
fertilizers, which reflects the idea of environmental friendliness and
participation in the values of the Russian Green One standard, to
participants and visitors of the Green Week 2020 international agricultural
exhibition held in Berlin.
"PhosAgro considers environmental safety an overarching priority. Last year,
the Company allocated over RUB 9 billion for environmental protection. And
as has
"In line with tradition, last year we allocated more than RUB 2.5 billion to
social and charitable projects. In 2019 we began to see the first results of
the educational programme implemented by PhosAgro. Nine children who
attended PhosAgro Classes, a project implemented since 2013 at PhosAgro
sponsored schools in the cities where the Company operates, have graduated
from specialised universities and have been hired by PhosAgro. Starting from
2022 we aim to recruit up to 50 young specialists who have been trained as
part of our educational projects every year."
At the meeting, the results of KPMG's assessment of the Board of Directors'
work were taken under advisement.
After discussing PhosAgro's IFRS financial results for FY 2019, which will
be disclosed tomorrow, the Board of Directors recommended that the Annual
General Meeting of Shareholders (AGM) approve a dividend payment of RUB 2.33
billion, or RUB 18 per ordinary share (RUB 6 per global depositary receipt).
As a result, total dividend payments for 2019 may remain at the same level
as 2018, when the global pricing environment for fertilizers was
significantly better, and amount to RUB 24.9 billion.
The Board also took note of the annual financial statements for 2019 and
submitted them for consideration at the AGM. A report from the Company's
Internal Audit Department on its work for 2019 was also approved at the
meeting, along related party transactions. The Company's annual report for
2019 received preliminary approval and has been submitted for approval by
the AGM.
In addition, three risk-related issues were reviewed: an assessment of the
effectiveness of the Company's risk management system in 2019, the results
of a reassessment of Company risks, and an update of the risk map for 2020.
The Board of Directors also took note of information on the development of
the system for procuring material goods by PhosAgro companies.
Contacts
PJSC PhosAgro
Andrey Serov, Head of Investor Relations Department
+7 495 232 9689 ext 2187
ir@phosagro.ru
Timur Belov, Press Officer
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 207 002 7859
Dmitry Zhadan
zhadan@em-comms.com
+7 916 770-89-09
About the Company
PhosAgro (www.phosagro.com [1]) 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. PhosAgro's environmentally friendly
fertilizers stand out for their high efficiency, and they do not lead to the
contamination of soils with heavy metals.
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% and one of the leading
producers 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.com [1].
ISIN: US71922G2093
Category Code: MSCH
TIDM: PHOR
LEI Code: 635400F8A3KGJIIBIK95
OAM Categories: 2.2. Inside information
Sequence No.: 48066
EQS News ID: 980539
End of Announcement EQS News Service
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(END) Dow Jones Newswires
February 20, 2020 10:33 ET (15:33 GMT)
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