Ultrapetrol (bahamas) Limited · OTC:ULTRF
Ultrapetrol (bahamas) — Jefferies Fifth Annual Shipping, Logistics, and Offshore Services Conference 2008
30 slides from Ultrapetrol (bahamas)'s conference presentation, Sep 16, 2008
Slide 1: Jefferies Fifth Annual Shipping, Logistics, and Offshore Services Conference
Jefferies Fifth Annual Shipping, Logistics, and Offshore Services Conference New York - September 16, 2008
Slide 2: Forward-looking statements & EBITDA
Forward - - looking statements & EBITDA Our disclosure and analysis in this presentation concerning our operations, cash flows and financial position, including, in particular, the likelihood of our success in developing and expanding our business, include forward-looking statements. Statements that
Slide 3: River, Offshore Supply and Ocean Businesses
River Business ü Biggest player in the Hidrovia ü Significant volume growth Offshore Supply Business Ocean Business ü Five modern PSVs operating in ü Three versatile Suezmax OBO vessels Brazil and the North Sea ü One Capesize vessel ü Nine PSVs under construction ü Four Handysize / Product Tankers 3
Slide 4: Public offerings substantially improved capital structure
Public offerings substantially improved capital structure… Net Debt to Capitalization(1), (2) 400,000 81% 90% 76% 350,000 80% 76% 70% 300,000 73% 52% 60% 250,000 52% 51% 50% 200,000 47% 46% 40% 150,000 39% 30% 100,000 20% 50,000 10% 0 0% 31-Dec- 31-Dec- 31-Dec- 31-Dec- 30-Jun- 04 05 Total Debt 06 07
Slide 5: While increasing profitability improved coverage
… while increasing profitability improved coverage… Profit Margin & EBITDA Coverage Ratio 5.0 30% 4.47 4.5 3.80 25% 4.0 3.5 3.28 2.92 20% 2.83 3.0 2.5 15% 12% 2.0 1.5 12% 10% 9% 1.0 5% 6% 5% 0.5 0.0 0% (3) 2004 2005 2006 2007 LTM ended (4) June 08 (1) (2) EBITDA Coverage Ratio Profit Margin (1) EBIT
Slide 6: And reduced Debt to EBITDA
…and reduced Debt to EBITDA Debt to EBITDA (1) 400,000 6.0x 350,000 4.83x 5.0x 300,000 4.36x 3.78x 4.0x 250,000 3.54x 3.65x 200,000 3.0x 150,000 2.0x 100,000 1.0x 50,000 0 0.0x (2) 2004 2005 2006 2007 LTM ended (2), (3) June 08 Total Debt EBITDA Debt to EBITDA (1) Debt to EBITDA = Total Debt / EBITD
Slide 7: We have consolidated the growth of our three main Business Segments
We have consolidated the growth of our three main Business Segments Revenues per Segment LTM June 2004 - LTM June 2008 1H 08 - 1H 07 300,000 271,269 250,000 7% 160,000 150,379 2% 200,000 36% 16% 120,000 100,852 43% 150,000 22% 11% 13% 16% 80,000 25% 100,000 95,160 6% 29% 18% 13% 49% 19% 13% 50,000 7
Slide 8: River Business
RIVER BUSINESS 8
Slide 9: River Business Overview
River Business Overview The Hidrovia Hidrovia Soy bean Production(1), (2) 250 100% 200 80% 150 53% 60% 100 32% 40% 50 20% 0 0% Hidrovia World Total Hidrovia % Corumbá Iron Ore Production(3), (4) 10 8.7 8 6 4 2.5 2 0 2005 2006 2007 2008E 2009E 2010E ► Runs over more than 2,200 miles RTZ CVRD MMX • Co
Slide 10: Ambitious growth programs to enlarge our capacity
We have 3 ambitious growth programs underway to enlarge significantly our capacity… 1) Construction of new capacity 2) Expansion of existing capacity ► Barge building yard ► Barge enlargement • Estimated total cost of USD 24.0 million for • $36.0 million CAPEX through 2010 construction and equipment
Slide 11: ...and improve fuel and operating efficiencies
…and improve fuel and operating efficiencies Estimated Pro Forma EBITDA & EBITDA margin at 3) Increase efficiency of pushing capacity different levels of fuel substitution 45,000 40% ► Re-engining & Re-powering Program 40,000 31% 35% • Replacement of existing diesel engines by more 35,000 27% 30% po
Slide 12: Offshore Supply Business
ULTRAPETROL SRE SUPPLY BUSINESS
Slide 13: Well established in the two most attractive Offshore Supply markets
We are well established in the two most attractive Offshore Supply markets… Deeper water wells in Brazil and harsh conditions in the North Sea require larger, more advanced PSVs Brazil North Sea ► Market moving to deeper water wells ► Harsh operating conditions demand ► Fastest growing Offshore mark
Slide 14: One of the most modern and homogeneous fleets in the world
…with one of the most modern and homogeneous fleets in the world Fleet in Operation UP Esmeralda 1 840 m 2005 North Sea Spot Market 2 UP Safira 1 840 m 2005 North Sea Time Charter Apr-09 2 UP Topazio 1 840 m 2006 North Sea Time Charter Sep- 2 09 UP Agua-Marinha 1 840 m 2006 Brazil Time Charter Apr-0
Slide 15: Gross profit from Offshore Supply Fleet expected to grow with fleet size
Gross profit from our Offshore Supply Fleet expected to grow consistently with fleet size over the next 3 years ► Current fleet of 5 PSVs; Expected to take delivery of UP Rubi in Brazil by 1Q 2009 ► In 2007, we placed orders for 4 new PSVs in India and 2 new PSVs in China ► Recently agreed with Chin
Slide 16: Offshore Supply Market Overview
Offshore Supply Market Overview 2006 - - To date North Sea Spot Rates (1) 2Q 08 Fleet Employment Distribution (2) 40,000 35,900 34,578 35,000 30,000 Spot 25,000 25,500 North Sea Committed 20,000 23,455 20% North Sea 15,000 17,777 10,000 Committed 40% 5,000 9,262 Brazil 0 40% 2006 2007 2008 UP North
Slide 17: The outlook is promising for the Offshore Supply Industry
The outlook is promising for the Offshore Supply Industry Source: Stewarts Offshore / ODS - - Petrodata Assumption: 1.7 PSVs required per ordered rig 2009 - - 2011 PSVs shortfall = 181 350 300 294 250 219 200 150 112 113 99 100 65 50 0 2009 2010 2011 PSVs on order (cumul.) Required PSVs (cumul.) Sou
Slide 18: Ocean Business
ULTRAPETROL CEAN BUSINESS
Slide 19: Ocean Business: two different fleets
Ocean Business: two different fleets… OBO / Capesize Fleet Handysize / Product Tankers Fleet ► Three OBO vessels chartered tied to ► Consolidating our leading presence in the 4TC Capesize Routes Index and the South American coastal market with covered through FFAs a very modern fleet ► Stable and at
Slide 20: OBO Fleet Average TC and Gross Profit Contribution
OBO Fleet Average TC and Gross Profit Contribution (1), (3), (4), (5), (6), (7) OBO Fleet Average Daily Time Charter Rates (1) OBO Fleet Gross Profit Contribution (1), (2), (3),( 5), (6) Actual Projected 60 70,000 $48.2 M 61,084 50 60,000 55,848 50,000 40 40,000 35,262 $27.0 M 29,221 30 30,000 20 20
Slide 21: Princess Marisol TC and Gross Profit Contribution
Princess Marisol TC and Gross Profit Contribution ► Covered 87 days in 4Q 08 with FFAs at an average rate of $154,846 Princess Marisol Average Time Princess Marisol Gross(1), (5), (6) (1) Charter Rates Profit Contribution (1), (2), (3), (4), (6) Actual Projected Actual Projected 140,000 40 130,000 1
Slide 22: FFAs 2009 & 2010
FFAs 2009 & 2010 ► For 2009, we sold 547.5 days of the 4TC Capesize Routes Index at $91,833 per day ► When added to the 180 days previously sold at $51,000, we have covered a total of 727.5 days in 2009 at an average of $81,730 of the index vessel ► Assuming a 25% discount, the FFAs sold for 2009 pr
Slide 23: Ocean Business 2Q 08 & Year to Date Highlights
Ocean Business 2Q 08 & Year to Date Highlights ► As from 2Q 2008, our three OBO vessels are operating under their 4TC Capesize Routes Index - linked time charters which expire during 1H 2009 ► As from 2Q 2008, our Capesize Princess Marisol is operating under a time charter tied to the 4TC Capesize R
Slide 24: Passenger Business Highlights
Passenger Business Highlights ► Sale of vessel did not materialize due to failure of buyer to place deposit in accordance with contract ► Bookings in July / August and expectations for Sept / Oct indicate high levels of occupancy with improved results with respect to 2Q 08 ► Vessel in market for sal
Slide 25: Expected Expansion CAPEX Program
Expected Expansion CAPEX Program ► Signed a 12-year secured term loan of up to $93.6 million with DVB Bank AG and Natixis in respect of pre-delivery and post-delivery financing of the four PSVs under construction in India ► As of September 15, 2008, we signed a Senior Credit Loan facility with IFC f
Slide 26: Business outlook: River, Offshore Supply and Ocean
River Business • Volumes on the River Business are currently growing • Freight rate scenario has been and is expected to continue stable / strong • Our total transported cargo is expected to grow as we expand capacity • Significant growth in fleet expected as from second half 2009 onwards • First tw
Slide 27: Thank You Q & A
Thank You Q&A 27
Slide 28: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA Year Ended December 31, LTM ended All figures in $ 000's 2004 2005 2006 2007 June 2008 Net income 5,139 14,568 10,526 4,441 30,587 Financial expense 16,134 19,141 19,025 20,178 21,360 Financial gain on extinguishment of debts -1,344 - 0 - 0 (a) Financial losses
Slide 29: Reconciliation of Revenues to Gross Profit Contribution
Reconciliation of Revenues to Gross Profit Contribution Offshore Supply Business Revenues $41,514 Voyage Expenses (1,822) Running (13,991) Costs Gross Profit $25,701 Contribution 29
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