Against the backdrop of an outflow of liquidity in the fourth quarter, PhosAgro postponed the decision to pay dividends for 2023. The securities reacted to this news with a decline, but then recovered
(Photo: Mikhail Grebenshchikov/RBC)
PhosAgro announced that it is postponing the decision on paying dividends for 2023. This was reported in the company's report with financial and operating results for last year.
“Against the backdrop of liquidity outflow in the fourth quarter of 2023 and in accordance with the dividend policy of PJSC PhosAgro, it was decided not to include the issue of profit distribution based on the results of 2023 on the agenda of the meeting of the board of directors, at which the company’s annual financial statements will be considered,” the company reported.
The board of directors plans to discuss the payment of dividends at a meeting based on the company’s performance results for the first quarter of 2024.
PhosAgro's dividend policy involves paying out more than 75% of free cash flow as dividends with net debt/EBITDA below 1x. If the indicator is in the range of 1x-1.5x, then the payments will be at least 50%, but not more than 75%, if the value is more than 1.5x – no more than 50%. The last time PhosAgro paid dividends for the nine months of 2023 was in the amount of ₽291 per share.
After the announcement of dividends, PhosAgro shares fell sharply, reaching negative territory. At the minimum, the decrease was 0.5% to ₽6626, according to Moscow Exchange data as of 19:47 Moscow time. By 21:34, the decline had slowed to 0.08%, the securities were trading at ₽6655.
The main indicators of PhosAgro at the end of last year decreased compared to 2022:
- < li>revenue decreased by 22.7% to ₽440.3 billion;
- net profit fell by 53.4% to ₽86.1 billion;
- EBITDA decreased by 29% to ₽183 billion;
- EBITDA margin decreased from 45.3% to 41 .6%.
The reduction in revenue and EBITDA in the company was associated with the stabilization of world prices for fertilizers after they rose to historically record levels in 2022.
Board of Directors of PhosAgro » recommended dividends of ₽291 per share PhosAgro,Khimprom, Shares,Dividends
The company’s net debt for the year increased from ₽180.3 billion to ₽223.2 billion. The net debt/EBITDA indicator increased from 0.7x to 1.2x. PhosAgro noted that its financial position allows it to service its debt obligations. The company explained that the growth in the amount of debt in rubles was significantly affected by the weakening of the ruble against the dollar in 2023 and the recalculation of the company's foreign currency debt at the new rate at the end of the year.