REG-OJSC PhosAgro: PhosAgro Board Recommends Dividend <Origin Href="QuoteRef">PHOR.MM</Origin> <Origin Href="QuoteRef">PHORq.L</Origin>

PhosAgro PAOAnnouncement

28/05/2015 15:50

For Immediate Release                                            28 May 2015


PhosAgro Board Recommends Dividend

Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading
vertically integrated phosphate-based fertilizer producers, announces that its
Board of Directors today has recommended that shareholders approve a dividend
payment of RUB 6,216 million, or RUB 48 per share (RUB 16 per Global Depositary
Receipt).  The Extraordinary General Meeting of shareholders ("EGM") has been
set for 14 July 2015, and the record date for shareholders eligible to
participate in the EGM is 8 June 2015.

The Board of Directors also reviewed a report on the Company's financial and
operational performance in 1Q 2015.  PhosAgro reported a year-on-year increase
of fertilizer production of 8.3%, to 1.7 mln tonnes, and sales growth of 2.8%,
to 1.7 million tonnes, in the first quarter. The growth in operating
performance was driven by successful implementation of the investment programme
and streamlining of production processes. The Company's consolidated IFRS
financial statements for 1Q 2015 were reviewed at today's meeting and will be
published tomorrow, 29 May 2015.

As part of its policy to optimise the Company's debt structure, PhosAgro
expects to reduce its debt to approximately RUB 20 billion by the end of the
year by utilising its operating cash flow to pay down short-term debt raised in
2012-2014.

The Board of Directors approved the work of the Company's management in
implementing PhosAgro's strategy for 2014, and confirmed the key areas of focus
for 2015. The priority investment projects in downstream production remain
construction a new 760 ths tonnes/year ammonium production facility at
PhosAgro-Cherepovets, a new 500 ths tonne/year granulated urea line and a new
300 ths tonne/year ammonium sulphate line, as well as increases in in
production capacities for phosphate-based fertilizers. Priorities for upstream
operations include modernisation of processing facilities and the launch of the
new main ore shaft at the Kirovsky underground mine at Apatit.

The Board of Directors was informed that optimisation of the investment
programme of PhosAgro-Cherepovets - including a decision not to construct a new
450 ths tonne/year NPK production facility in favour of modernising and
expanding existing fertilizer production facilities - resulted in a reduction
of the programme's cost from USD 1.07 bln to USD 0.99 bln.

The Board of Directors also reviewed information regarding implementation of
the Company's social programmes in 2014 and of the main areas of the Company's
social policy in 2015. The Board also reviewed the results of the holding
company enterprises' work on maintaining compliance with workplace safety
requirements in 2014.

The Board of Directors also approved related-party transactions at the meeting.

PhosAgro CEO Andrey Guryev said: "We continue to fulfil our promises to
investors under PhosAgro's new dividend policy, which increased the share of
new profit to be distributed as dividends.  At the same time we are working to
reduce our debt levels and we are implementing PhosAgro's strategic investment
programme, which aims to secure the Company's leading positions in the global
fertilizer market."

For further information please contact:

OJSC PhosAgro
Irina Evstigneeva, Head of Corporate Finance and Investor Relations
ir@phosagro.ru
+7 495 231 3115 

Timur Belov, Press Officer
Anastacia Basos, Deputy Press Secretary
+7 495 232 9689

EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134

Notes to Editors

PhosAgro is one of the leading global vertically integrated phosphate-based
fertilizer producers.  The Company focuses on the production of phosphate-based
fertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of not
less than 39%), as well as ammonia and nitrogen-based fertilizers. 

The Company is the largest phosphate-based fertilizer producer in Europe, the
largest producer of high-grade phosphate rock worldwide and the third largest
MAP/DAP producer in the world (excluding China), according to Fertecon. 
PhosAgro is also one of the leading producers of feed phosphates (MCP) in
Europe, and the only producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high
quality apatite-nepheline ore.  The Company's mines and phosphate rock
production facilities are located in the mountainous areas of the Kola
Peninsula in the Murmansk region of northwest Russia, whereas its fertilizer
and feed phosphate production assets are located near the city of Cherepovets
in the Vologda region and near the city of Balakovo in the Saratov region of
southwest part of European Russia. 

PhosAgro's 2014 IFRS revenue was over USD 3.2 bln and EBITDA was USD 979 mln.

For further information on PhosAgro please visit: http://www.phosagro.com/



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