Eposeidon Named Exclusive Ecooda® Distributor for North America

Ecooda® inks contract with Eposeidon Outdoor Adventure, Inc. as the sole distributor for Ecooda fishing products in the United States and Canada.

Hempstead, NY, USA (May 30, 2014) -- Executives at Eposeidon Outdoor Adventure, Inc. (Eposeidon, Inc., http://www.eposeidon.com) based on Long Island, New York, and Ecooda®, which manufactures a variety of spinning and baitcasting reels and other fishing products, have entered into an agreement recognizing Eposeidon as the sole agency representing the Ecooda® brand in the North American region of the US and Canada.

Ecooda Hornet Spinning Reel for Surf Fishing
Ecooda® reels are already on Eposeidon's warehouse shelves. Spinning reel models include the high performance surf model Hornet, the high-tech Black Hawk built with carbon fiber components, ERS Max Drag Power which comes with features usually only found in reels selling for hundreds of dollars more, and the CZS series that offers a quality reel at the economy level. Presently Eposeidon also markets Ecooda® baitcasting reels, the Sniper High Speed, and the Shadow. Other models are under consideration to be added.

Ecooda Sniper High Speed Baitcaster
"We've put Ecooda® reels in the consumer's hands since the second half of last year and the products have been met with outstanding positive reviews," says Eposeidon's CEO Tate Cui. "Given the top quality of the reel, and the price we can market it at, it was an easy decision to enter into the arrangement."

Eposeidon marketing manager Tom Gahan added, "The Ecooda® reels are selling themselves. Each Ecooda® model has outstanding features at its respective price point. At best, the percentage of returns for warranty replacement has been microscopic; far below other comparably priced brands."

"It is an exciting time for Ecooda®. Our growth rate has exceeded our expectations," says Cui. "Ecooda® is yet another product that continues to bolster our sales. We look forward to a great relationship with Ecooda® and will be adding other products and lines in the third quarter of 2014."

Ecooda® reels have enjoyed a solid reputation and wide acceptance among Australian and European anglers for the last several years.

Gahan commented on the marketability of the Ecooda® brand, "We respect that anglers are brand loyal. But we see a trend toward recreational fishing tackle consumers purchasing reels that do the job equally as well at less than half the price. Ecooda® plays a role in that shift. Brand loyalty is falling to spending sensibility."

Eposeidon also markets a line of spinning and baitcasting reels under their own KastKing™ brand.

For more information about Ecooda® and Eposeidon visit http://www.eposeidon.com.


Eposeidon (http://www.eposeidon.com) is an e-commerce company (Eposeidon Outdoor Adventure, Inc.) that brings a fresh, innovative approach to anglers by offering quality products at the best prices and no cost, or low cost shipping. Eposeidon's goal is to exceed expectations through outstanding customer service and superior product value to their customers. Eposeidon is continually expanding its product lines to meet individual fishing equipment needs. Eposeidon is headquartered in Hempstead, NY, USA and sells fishing tackle products globally.

Media Contact:
Tom Gahan
Director of Marketing
Eposeidon Outdoor Adventure, Inc.
Direct Line: 631-369-0063
US Headquarters: 1-855-830-7430

URALCHEM, OJSC Reports IFRS Financial Results for the First Quarter of 2014

Revenue decreased to 19.4 bln RUB, compared to 20.8 bln RUB in January-March 2013.
Operating profit amounted to 5.3 bln RUB, compared with 6.7 bln RUB in January-March 2013.
Adjusted EBITDA comprised 6.2 bln RUB, compared to 7.6 bln RUB in January-March 2013.
Adjusted EBITDA margin amounted to 32%, compared to 37% in January-March 2013.

Moscow, Russia (May 30, 2014) -- URALCHEM, OJSC (hereinafter URALCHEM or the Company), the Russian holding company of the URALCHEM Group, one of the largest producers of nitrogen fertilizers in Russia, announced its IFRS financial results for the first quarter of 2014.

The Group’s Key Financial Figures (million RUB)

January – March, 2014
January – March, 2013
Year-on-year change, %
Gross profit
Gross profit margin

Operating profit
Operating profit margin

Foreign exchange loss from financing activities

Net (loss)/profit

Net (loss)/profit margin

Adjusted EBITDA
Adjusted EBITDA margin

Cash generated from operating activities

Revenue for the first quarter of 2014 decreased by 7% to 19.4 bln RUB, compared to 20.8 bln RUB in January - March, 2013. Operating profit amounted to 5.3 bln RUB (23% of revenue) compared with the operating profit of 6.7 bln RUB (32% of revenue) in the first quarter of 2013.

Adjusted EBITDA comprised 6.2 bln RUB, compared to 7.6 bln RUB, a decrease of 18%. The adjusted EBITDA margin for the first quarter of 2014 amounted to 32% of revenue, compared with 37% of revenue for the first quarter of 2013.

The negative net profit is the result of so-called paper losses. The bulk of the company's debt is denominated in dollars, and following the sharp rise in the foreign exchange rate in the first quarter of 2014, the company has recognized a foreign exchange loss from financing activities to the amount of 13.56 billion roubles in the reporting period. Of this amount, 13 billion roubles is the exchange difference on the loans, on which there have been no real cash flows. Sharp fluctuations in exchange rates have a significant effect on the net income indicator. For example, movement of the dollar exchange rate in the opposite direction in April and May provided for positive exchange rate differences on the same loans to the total of about 6.5 billion roubles.

In addition, the financial result from operations includes foreign exchange loss in the amount of 957 million roubles arising on intercompany liability, while the corresponding gain is reflected directly in the statement of changes in equity. If these exchange differences were netted off, EBITDA could reach 7.15 billion roubles and its margin would be 37%.

Thus, against the background of declining global prices for major fertilizers, in the first quarter of 2014, URALCHEM showed the sustainability of its business model. Whilst its financial performance was lower in absolute terms, the company has maintained high margins (profitability) and continued to generate a stable positive cash flow. In response to market trends, the company has increased production and sales of key products, ammonium nitrate and its derivatives, as well as continued its efforts to improve the efficiency of business processes, to increase productivity and profitability and to reduce operating costs.


The first quarter is traditionally a period of significant market activity and prices are being supported by strong demand in premium markets, the US and Europe. However, despite the rise in prices in the first half of the quarter, the average values of quotes were lower than in the first quarter of 2013. In the second and third quarters of 2014 the market expects oversupply associated with the start of Chinese exports. The main demand during the period is expected from South Asia and Latin America, ie regions in which the price is traditionally low. The volume of demand is assessed as insufficient to absorb all available supplies from China and the Middle East. As a result of the oversupply, price cuts will inevitably lead to a halt in production in regions with high costs, including Europe and the CIS.

In January, the activity in ammonia markets stayed low. Quotes based on FOB Yuzhnyi Port remained around 410 to 430 dollars/tonne. In February, prices for ammonia in the ports of the CIS began to rise, which continued until the end of the quarter. Gazprom's announcement about cancellation of discounts on natural gas prices increased interest in purchasing in the Yuzhnyi Port; the lack of available supplies in Trinidad heightened interest of US importers in purchasing in the CIS. The main growth in demand was due to the start of direct application of ammonia and increased requirements for raw materials from producers of phosphate fertilizers. In March, prices reached 474 dollars/tonne. However, in general, for the quarter the prices amounted to 438 dollars/tonne, which is 22.2 % lower than a year before.

The greatest activity for urea during the quarter was shown in US, Europe and Brazil. The US entered the purchasing season with low stocks. In January, prices in the US rose by 21% and the rapid rise in prices in the United States resulted in an increase in prices in the major sources of shipment: in the Port of Yuzhnyi by 15%, in Egypt also by 15%, in the Middle East by 16%. Prices were also supported by a lack of free product in North Africa and the Middle East. However, beginning with the last week of January, the market trend changed. The devaluation of the Turkish lira and the Brazilian real impeded imports from these countries and by the end of the quarter, prices returned to January levels. The average quotes for urea FOB Baltics in March totalled 314 dollars/tonne. The average urea price for the quarter was $330/tonne, which is 14.3 % lower than a year before.

January and February marked steady growth of quotations for ammonium nitrate caused by deficiency of the product available for export, due to the supply to the Russian domestic market. FOB Baltics quotes grew from $300/tonne up to $320/tonne. But from the beginning of March there was change in the trend due to lower domestic demand. In general, during the first quarter of 2014 quotes amounted to $308/tonne, which is 8.6% lower than a year before.

In the segment of phosphate fertilizers (MAP/DAP) average quotations (FOB Black Sea) for the first quarter of 2014 amounted to $469 dollars/tonne, which is 6% lower than a year before. Since mid-March, demand in this segment declined markedly; importers, relying on high inventories, put off new purchases in anticipation of more lucrative offers. In the second quarter, market participants expect lower prices.


Sales figures of the URALCHEM Group (thousand tonnes):

Name of product
January – March, 2014
January – March, 2013
Year-on-year change, %
Ammonium nitrate and its derivatives
Phosphate fertilizers
NPK fertilizers
Other chemicals, including ammonium nitrate for industrial use

Financial Situation

Cash generated from operating activities in the first quarter of 2014 amounted to 5.6 bln RUB, compared to 5.06 bln RUB in the first quarter of 2013.

As at 31 March 2014, the Company's net debt amounted to 163.11 bln RUB. The debt burden increased after the Company received a loan from VTB Capital to finance the purchase of 19.99% of shares in OJSC "Uralkali", which as at 31 March 2014 amounted to 146,01 bln RUB

For more information, please visit the Company web site http://www.uralchem.com or use the following contact information:

Public Relations Department
Tel: +7 (495) 721 89 89

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.8 million tonnes of ammonia, 2.5 million tonnes of ammonium nitrate, 1.2 million tonnes of urea and 0.8 million tonnes of phosphate and compound fertilizers per year. URALCHEM, OJSC ranks first in Russia for production of ammonia and ammonium nitrate, and second for the production of urea. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Annex to the press release about the financial results for the first quarter of 2014

EBITDA is a profit / loss from financial and economic activities during the reporting period, before deduction of income tax on profits, income and interest costs, depreciation and amortization. "Adjusted EBITDA" is EBITDA for the reporting period before goodwill, profit / loss from associates, profit / loss on foreign exchange differences arising on financial performance and profit / loss on operations with derivative financial instruments. Adjusted EBITDA is operating profit before depreciation and amortization and financial results of operations with derivative financial instruments. In accordance with International Financial Reporting Standards ("IFRS"), depreciation and amortization are included in cost structure, and in the selling, general and administrative expenses. IFRS does not require the disclosure and does not describe the calculation of EBITDA and adjusted EBITDA, among other financial indicators, so they can not substitute for net profit for the period when evaluating the results of operations or the measure of cash provided by operating activities when evaluating liquidity. Approach to the calculation of EBITDA and adjusted EBITDA, as described earlier, may not coincide with the approaches used by other companies, therefore, comparability may be limited. We believe that EBITDA and adjusted EBITDA provide useful information to investors because they are indicators of the stability and efficiency of our business and our ability to fund discretionary spending such as capital expenditures, the acquisition of subsidiaries and other investments, as well as indicators of our ability to incur and service debt. IFRS classifies depreciation and amortization to operating costs, while in fact they are distributed to the current period non-cash expenses for the acquisition or creation of fixed assets, incurred in previous periods, and are not affiliated with the movement of funds.

Calculation of EBITDA (mln RUB)

January – March, 2014
January – March, 2013

Net (loss)/profit

Income tax
Interest and other finance income
Interest and other financie expense
Depreciation and amortisation





Share of loss of associates

Foreign exchange loss from financing activities


Adjusted EBITDA