Moscow – The Annual General Meeting of shareholders (AGM) of PhosAgro (“the Company”) (Moscow Exchange, LSE: PHOR) has approved a final dividend payment for 2018 of RUB 6.6 billion, which represents RUB 51 per ordinary share (RUB 17 per GDR) from undistributed net profit for 2018. The dividend record date was set as 10 June 2019.
The AGM also approved the annual report for 2018, which presented growth in fertilizer and feed phosphate production by 7.6% year-on-year to 9 million tonnes, and phosphate rock production that exceeded 10 million tonnes, a record for the industry.
Solid operating performance enabled the Company to achieve strong financial results, including a record level of free cash flow amounting to RUB 21 billion, an industry-leading EBITDA margin of 32%, and a 97% year-on-year increase in adjusted net profit.
PhosAgro CEO Andrey Guryev said: “Major investments under the Company’s Strategy to 2020, which was completed ahead of schedule last year due to high professionalism and well-coordinated teamwork, have enabled us to achieve consistent growth in operating and financial performance over the course of the year.
“This solid foundation has enabled us to make stable dividend payments, as well as to finance new investments and social programmes, guaranteeing significant capacity for further growth that is built into PhosAgro’s new Strategy to 2025.”
The Strategy to 2025, approved in March 2019, aims to further strengthen PhosAgro’s position as a producer of pure phosphate-based fertilizers while also benefiting from one of the lowest cash costs of production in the industry. It also preserves the Company’s commitment to sustainable development principles, including its implementation of environmental protection measures on which it spent approximately RUB 8 billion in 2018, and ensures the long-term sustainability of the Company’s operations.
The AGM elected new members of PhosAgro’s Board of Directors and Revision Commission, approved the annual financial statements for 2018, distribution of the Company’s profit for 2018 and interested-party transactions. Shareholders also approved payment of remuneration and compensation to members of the Board of Directors. PhosAgro’s auditor for 2019 was confirmed as LLC FBK.
