REG-PhosAgro PJSC PhosAgro PJSC: PhosAgro Board of Directors Recognises Company’s Successful Results in 2022

PhosAgro PAOAnnouncement

03/03/2023 12:00

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   PhosAgro PJSC (PHOR)
   PhosAgro PJSC: PhosAgro Board of Directors Recognises Company’s Successful
   Results in 2022

   03-March-2023 / 14:45 MSK
   The issuer is solely responsible for the content of this announcement.

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     PhosAgro Board of Directors Recognises Company’s Successful Results in
                                      2022

   Moscow – The Board of Directors of PhosAgro (Moscow Exchange, LSE:  PHOR),
   one  of  the   world’s  leading   vertically  integrated   phosphate-based
   fertilizer producers, has declared  the Company’s operating and  financial
   results for 2022 a success.

   In summarising the results of  the Company’s operations in 2022,  PhosAgro
   CEO Mikhail Rybnikov said:

   “Last year,  we  able  to  continue our  strong  growth  despite  external
   challenges. We made considerable progress  in production and sales and  in
   the implementation of our investment programme.

   “We set  a new  all-time record  in 2022:  our enterprises  produced  11.1
   million tonnes of  agrochemical products,  an increase of  nearly 5%  from
   2021. This result was made possible  thanks to the professionalism of  our
   entire workforce and continuous  large-scale investments in the  Company’s
   fixed capital. Last year, we took another confident step towards achieving
   our 2025 strategic objectives.

   “As part of our long-term development strategy in 2022, industrial testing
   began at our Kirovsky mine’s  new +10 m level.  It is going to  compensate
   for levels that are being shuttered and will not only maintain the  mine’s
   overall output  volumes but  will  also increase  them from  22.8  million
   tonnes in 2021 to  25 million tonnes  of ore by 2025.  In early 2022,  our
   Cherepovets site began operating its upgraded aluminium fluoride shop with
   increased capacity. In April,  the main works  were completed to  increase
   the design capacity of the third ammonia production line to 107%. As  part
   of the next stage in the strategic development of our Balakovo facility, a
   phosphoric  acid  storage  facility  was  built  in  2022,  and  the  main
   construction  and  installation  works  were  completed  to  increase  the
   facility’s production capacity for granular  ammonium sulphate – a  unique
   fertilizer brand that, in  Russia, is produced only  in Balakovo – to  360
   thousand tonnes  per  year.  The  first batch  of  water-soluble  MAP,  an
   innovative product in high demand among farmers, was produced during pilot
   testing in Volkhov.  In total, we  invested a record  RUB 63 billion  last
   year, a third more than in 2021.

   “In 2023, we are going  to raise the bar  even higher, with planned  capex
   expected to reach nearly RUB 67  billion. The second start-up complex  for
   the 10th horizon at the  Kirovsky mine is expected  to come online by  the
   end of  the year.  In  Cherepovets, in  addition  to projects  to  support
   capacities for the  production of ammonia,  phosphoric acid and  sulphuric
   acid, a  project  to  increase  the processing  of  phosphate  rock  under
   development. In Balakovo, we  are going to  complete projects to  increase
   the production of  feed phosphates and  sulphuric acid by  the end of  the
   year, and we are also starting the  third stage in the development of  the
   production  facility  by  establishing  a  flexible  arrangement  for  the
   production of MAP/DAP/NPS/NPK fertilizers. Our new million-tonne plant  in
   Volkhov is expected  to reach  design capacity in  2023. Furthermore,  the
   possibility of building new facilities  for the production of ammonia  and
   urea in Cherepovets and Volkhov is being analysed.

   “Thanks to the consistent implementation  of our investment programme,  we
   can expect a further increase  in the production of agrochemical  products
   in 2023. Our workforce laid  the groundwork for this in  January–February,
   as we increased production of phosphoric acid and sulfuric acid by 22% and
   17% year-on-year respectively over this period.”

   “Our steadily increasing production has enabled us not only to make a  key
   contribution to ensuring national  food security but  also to ensure  that
   our employees are paid decent wages: in 2021, the average salary increased
   by 10%, and salaries were indexed by  a further 12% in February 2022  (the
   average salary rose by 22%). This was an important step in supporting  the
   social safety  net  and maintaining  stability  in the  regions  where  we
   operate. Our tax payments at all levels rose by 50% last year to over  RUB
   59 billion. This year, we will  continue to fulfil all our obligations  in
   terms of  social  development in  the  regions where  we  operate,  having
   provided a record  amount of  support for social  and charitable  projects
   last year, increasing the amount of funds allocated for these purposes  by
   nearly 150% (RUB 12.9  billion). Thus, our  traditional commitment to  ESG
   principles will remain a top priority,” said Viktor Cherepov, Chairman  of
   PhosAgro’s Board of Directors.

   The Board of Directors took note  of the Company’s 2002 financial  results
   as well as its consolidated IFRS financial statements for 2022. The  Board
   also took note of the Company’s annual financial statements for 2022.

   The Board of Directors also recommended that the Annual General Meeting of
   Shareholders (AGM) allocate a portion  of the Company’s retained  earnings
   for dividend payments, at the rate of  RUB 465 per ordinary share. It  was
   recommended that the AGM confirm 4 April 2023 as the dividend record date.

   In addition, a  list of  candidates for  election to  PhosAgro’s Board  of
   Directors at the AGM  was approved, as  was a list  of candidates for  the
   Company’s Audit Commission.

   The agenda for the AGM will  include the approval of the Company’s  annual
   report and  annual  financial statements  for  2022; the  distribution  of
   profits, including  the payment  of  dividends, and  losses based  on  the
   Company’s 2022 results; the election of members of the Board of  Directors
   and the payment of remuneration and  compensation to members of the  Board
   of Directors; the  election of members  of the Audit  Commission; and  the
   approval of the Company’s auditor for 2023.

   About the Company

   PhosAgro (www.phosagro.ru) is a vertically integrated Russian company  and
   one of the  world’s leading producers  of mineral phosphorous  fertilizers
   and of  high-grade  apatite  concentrate  grading  39%  P2O5  and  higher.
   PhosAgro’s fertilizers are highly effective, ensuring the improved quality
   of agricultural produce.

   PhosAgro Group is the largest manufacturer of phosphate-based  fertilisers
   in Europe  (by  total  capacity  of  DAP/MAP/NP/NPK/NPS  production),  the
   largest producer of phosphite grading 39% P2O5 in the world and one of the
   leading global  producers of  ammonium and  diammonium phosphate,  one  of
   Europe’s leading and the only producer in Russia of monocalcium  phosphate
   feed (MCP), and the only producer in Russia of nepheline concentrate.

   The company’s main products, including phosphite, 57 grades of fertilizer,
   phosphate feed, ammonium, and sodium tripolyphosphate, are used in  around
   100 countries on all inhabited  continents. Our priority markets,  besides
   Russia and the CIS, are Latin America, Europe, and Asia.

   The company's shares  are listed  on the  Moscow Exchange  and its  Global
   Depositary Receipts (GDRs) are listed  on the London Stock Exchange  (MOEX
   and LSE ticker: PHOR).   

   More  information  about  PhosAgro  PJSC   can  be  found  on  our   site:
    1 www.phosagro.ru  

    

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   ISIN:           US71922G2093
   Category Code:  MSCU
   TIDM:           PHOR
   LEI Code:       25340053KRUNNYUWF472
   OAM Categories: 2.2. Inside information
   Sequence No.:   227413
   News ID:        1574379


    
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