Ultrapetrol (bahamas) Limited · OTC:ULTRF
Ultrapetrol (bahamas) — Q3 2008 Earnings Presentation
35 slides from Ultrapetrol (bahamas)'s earnings presentation, Nov 13, 2008
Slide 1: Third Quarter 2008 Earnings Call
Third Quarter 2008 Earnings Call November 13, 2008 1
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 th
Slide 3: Ultrapetrol's 3Q 2008 & Subsequent Events Highlights
Ultrapetrol’s 3Q 2008 & Subsequent Events Highlights (In $ 000's) 3Q 08 3Q 07 % Change Revenues $91,304 $63,090 45% (1) EBITDA $30,589 $10,476 192% Ex-items Non-Cash Losses on FFAs (2) - 11,239 - Adjusted EBITDA 30,589 21,715 41% Net Income (Loss) $15,065 ($4,740) - Basic EPS (In $) $0.46 ($0.14) -
Slide 4: Nine months ended Sep 30, 2008 & Subsequent Events Highlights
Ultrapetrol’s nine months ended Sep 30, 2008 & Subsequent Events Highligh Nine months ended September 30, (In $ 000's) 2008 2007 % Change Revenues $241,683 $163,942 47% EBITDA (1) $93,824 $43,271 117% Ex-items Non-Cash (Gains) Losses on FFAs (11,719) 14,312 - Adjusted EBITDA 82,105 57,583 43% Net In
Slide 5: River Business 3Q 2008 & Subsequent Events
River Business 3Q 2008 & Subsequent Events ► Ongoing construction of new barge building yard → construction of facility and foundations of main equipment progressing two months behind schedule • Most modern of its kind in South America → expected to be in production by 2Q 2009 • Will allow us to inc
Slide 6: River Business 3Q Year-on-Year Highlights
River Business 3Q Year-on-Year Highlights (In $ 000's) 3Q 08 3Q 07 % Change Volumes (In Metric Tons) 1,196,846 1,047,449 14% Revenues $38,664 $24,640 57% Voyage Expenses (21,378) (11,469) 86% Running Costs (10,160) (6,997) 45% G&A (2,722) (1,340) 103% Other Operating Income 683 1 - Investment in Aff
Slide 7: 3Q 08 vs 3Q 07 Freight Rate Increase Breakdown
3Q 08 vs 3Q 07 Freight Rate Increase Breakdown (In $ / Ton) 3Q 08 3Q 07 Difference Average Freight Rate $30.35 $21.94 38% Difference $8.41 Of which Fuel adjustment explains $5.22, or 24% Average price increases and cargo mix explain $3.19, or 14% 35 $30.35 30 +14% $8.41 25 +24% $21.94 20 15 3Q 07 3Q
Slide 8: EBITDA Margin & Fuel Adjustment
3Q & YTD Sep 08 vs 3Q & YTD Sep 07 EBITDA Margin & Fuel Adjustment (In $ 000’s) 3Q 08 3Q 07 YTD Sep 08 YTD Sep 07 % Change Revenues $38,664 $24,640 $100,675 $69,665 45% Segment EBITDA $4,767 $4,598 $14,048 $15,909 -12% Segment EBITDA Margin 12.3% 18.7% 14.0% 22.8% -39% Effect of Fuel Adjustment ($6,
Slide 9: Hidrovia Market Overview
Hidrovia Market Overview Paraguayan Soybean Crop Corumbá Mine Iron Ore Exports (1) 1,571 8,000 7,200 6,800 7,000 700 650 6,200 6,000 600 492 5,000 500 827 429 4,000 3,640 400 292 305 3,000 300 230 2,000 200 1,000 100 0 0 2006 2007 2008E 2009F 3Q 07 3Q 08 July August September Source: FAS - USDA (1)
Slide 10: Offshore Supply Business 3Q 2008 & Subsequent Events
Offshore Supply Business 3Q 2008 & Subsequent Events Five vessels operated during 3Q 2008: Seven vessels under construction: ► Brazilian Market ► Brazil - 1 Vessel • Two vessels committed until 2Q / 3Q • UP Rubi → delivery expected during 1Q 2009; 2009 vessel already committed under a 4-year charter
Slide 11: Offshore Supply Business 3Q Year-on-Year Highlights
Offshore Supply Business 3Q Year-on-Year Highlights (In $ 000's) 3Q 08 3Q 07 % Change Revenues $13,019 $11,359 15% Voyage Expenses (534) (444) 20% Running Costs (4,412) (3,770) 17% G&A (1,774) (1,146) 55% Other Income (Expenses) (4) - - Minority Interest (439) (181) 143% Segment EBITDA $5,856 $5,818
Slide 12: Offshore Supply Fleet Overview
Offshore Supply Fleet Overview Fleet in Operation Vessel Deck Area Year Built Market Contract Expiry 2 UP Safira 840 m 2005 North Sea Time Charter Apr-09 2 UP Esmeralda 840 m 2005 North Sea Time Charter Jul-09 2 UP Topazio 840 m 2006 North Sea Time Charter Sep-09 2 UP Agua-Marinha 840 m 2006 Brazil
Slide 13: Offshore Supply Market Overview
Offshore Supply Market Overview 2006 - - to date North Sea Spot Rates (1) 3Q 08 Fleet Employment Distribution (2) 40,000 34,578 35,900 35,000 34,604 30,000 Spot 28,042 25,000 North Sea Committed 20,000 20% North Sea 15,000 17,777 10,000 Committed 40% 5,000 9,262 Brazil 0 40% 2006 2007 2008 UP North
Slide 14: Ocean Business 3Q 2008 & Subsequent Events
Ocean Business 3Q 2008 & Subsequent Events Ш For the whole 3Q 2008 our three OBO vessels operated under their 4TC Capesize Routes Index-linked time charters which expire during 1H 2009 Ш For almost the whole 3Q 2008, our Capesize Princess Marisol operated under a time charter tied to the 4TC Capesiz
Slide 15: Ocean Business Financial Developments
3Q 2008 & Subsequent Events Ocean Business Financial Developments ► During 3Q 2008 we sold 500 days in OTC FFAs to further cover our exposure to the spot market; breakdown per period / counterpart as follows: § 90 days in 4Q 2008 (30 days per month) at an average of $153,500 / day - Noble and Bunge
Slide 16: Year-on-Year Ocean Business Highlights
Year-on-Year Ocean Business Highlights (In $ 000's) 3Q 08 3Q 07 % Change Revenues $32,965 $13,407 146% Voyage Expenses (1,539) (16) - Running Costs (9,865) (4,326) 128% G&A (1,818) (1,829) -1% Net Gain (Loss) on FFAs - (13,162) - Other Operating Income 584 512 14% Investment in Affiliates (5) 251 -1
Slide 17: OBO Fleet Average TC and Gross Profit Contribution
OBO Fleet Average TC and Gross Profit Contribution (1) to (7) OBO Fleet Average Daily Time Charter Rates (1) OBO Fleet Gross Profit Contribution (1), (2), (3), (5), (6) Actual Projected 60 70,000 61,463 49.0 56,567 50 60,000 50,000 48,112 40 40,000 30 27.0 29,221 30,000 20 20,000 10,000 10 0 0 FY 07
Slide 18: Princess Marisol TC and Gross Profit Contribution
Princess Marisol TC and Gross Profit Contribution ► Drydocked until end of 4Q 2008; 22.5 days covered through OTC FFAs at $53,500 Princess Marisol Average Time Charter Princess Marisol Gross Profit (1), (5), (6), (7) Rates (1) Contribution Actual Projected (1), (2), (3), (4), (6) Actual Projected 14
Slide 19: OBO FFAs 2009 & 2010
OBO FFAs 2009 & 2010 ► We sold 45 days of the 4TC Capesize Routes Index at $53,500 per day for 1Q 2009 → 22.5 days attributable to OBO fleet ► When added to the 727.5 days previously sold at an average of $81,730, we have covered a total of 750 days of our OBO fleet in 2009 at an average of $80,883
Slide 20: Ocean Fleet Overview
Ocean Fleet Overview Vessel Name Description DWT Year Built Contract Princess Nadia 152,328 1987 BCI 4TC Related Time Charter Princess Susana 152,301 1986 BCI 4TC Related Time Charter Suezmax OBO / Capesize Vessels Princess Katherine 164,100 1986 BCI 4TC Related Time Charter Princess Marisol 166,013
Slide 21: Drybulk Industry Overview
Drybulk Industry Overview 4TC Capesize Routes 250,000 230,818 193,775 200,000 150,000 100,000 50,000 33,110 4,193 0 Average 2004-2006 2007 2008 Baltic Forward Assessment - November 11, 2008 Period Route Average Current Rate (Spot) $4,193 BFA Nov / Dec 2008 $8,370 BFA 1Q 2009 $14,750 BFA 2Q 2009 $20,
Slide 22: Passenger Business 3Q 2008 & Subsequent Events
Passenger Business 3Q 2008 & Subsequent Events Ш One vessel, Blue Monarch, in operation during 3Q 2008 Ш Vessel operated for most of 3Q 2008 at high occupancy levels but still insufficient to reach breakeven (Segment EBITDA in the quarter of negative $0.5 million) Ш Previously announced sale of the
Slide 23: Current Fleet List
Current Fleet List ULTRAPETROL OWNED FLEET AS OF NOVEMBER 12, 2008 RIVER FLEET Number Capacity (1) Pushboats 29 104,400 BHP Pushboats Under Construction 1 8,325 BHP Dry Barges 547 909,700 Dwt Tank Barges 44 95,578 m 3 Transfer Station 1 35,000 Dwt OFFSHORE SUPPLY FLEET Number Deck Area PSVs in Opera
Slide 24: Expected Expansion CAPEX Program
Expected Expansion CAPEX Program Per Segment (In $ Million) 2008 2009 2010 2011 Total River Business Barge enlargement & bottom replacement programs 16 10 10 - 36 Barge building yard 18 28 28 28 102 Re-engining project 14 25 7 - 46 Barges / tugs acquisitions 29 2 - - 31 Total River Business 77 65 45
Slide 25: Year-on-Year Ultrapetrol's Income Statement
Year-on-Year Ultrapetrol’s Income Statement (In $ 000's) 3Q 08 3Q 07 YTD Sep 30, 08 YTD Sep 30, 07 Revenues $91,304 $63,090 $241,683 $163,942 Voyage Expenses (27,390) (15,738) (65,090) (38,857) Running Costs (27,702) (20,532) (74,015) (53,579) D&A (10,424) (8,973) (30,383) (25,430) G&A (6,386) (4,58
Slide 26: Year-on-Year Ultrapetrol's Income Statement
Year-on-Year Ultrapetrol’s Income Statement (In $ 000's) 3Q 08 3Q 07 YTD Sep 30, 08 YTD Sep 30, 07 % Change Attributable to River Business $38,664 $24,640 $100,675 $69,665 45% Attributable to Offshore Supply Business 13,019 11,359 33,180 30,153 10% Attributable to Ocean Business 32,965 13,407 98,288
Slide 27: Year-on-Year Ultrapetrol's Income Statement (cont'd)
Year-on-Year Ultrapetrol’s Income Statement (cont’d) YTD Sep YTD Sep 3Q 08 3Q 07 % Chg (In $ 000's, except share and per share data) 30, 08 30, 07 Operating Profit $20,744 $13,775 $58,276 $32,229 81% Financial Expenses (8,171) (4,997) (19,027) (14,639) 30% Financial Income 188 1,056 835 2,296 -64% N
Slide 28: Ultrapetrol's Balance Sheet
Ultrapetrol’s Balance Sheet (In $ 000's) At September 30, At December 31, % Change ASSETS Cash & Cash Equivalents $106,721 $64,262 66% Accounts Receivables 31,529 15,680 101% Other Receivables 59,413 14,336 314% Other Current Assets 19,216 10,963 75% Vessels and Equipment, Net 532,908 462,292 15% No
Slide 29: Thank You Q & A
Thank You Q&A i ULTRAPETROL 29
Slide 30: Appendix
Appendix (In $ 000's) Third Quarter Ended September 30, 2008 2007 Net Income $15,065 ($4,740) Plus Financial expense 8,171 4,997 Income taxes (3,071) 1,246 Depreciation and amortization 10,424 8,973 EBITDA (1) $30,589 $10,476 (In $ 000's) Nine Months Ended September 30, 2008 2007 Net Income $44,118
Slide 31: Appendix (cont'd)
Appendix (cont’d) (In $ 000's) Third Quarter Ended September 30, 2008 River Offshore Supply Ocean Passenger TOTAL Segment operating profit $1,708 $5,049 $15,456 ($1,469) $20,744 Depreciation and amortization 3,379 1,250 4,871 924 10,424 Investment in affiliates / Minority interest (196) (439) (4) -
Slide 32: Appendix (cont'd)
Appendix (cont’d) (In $ 000's) Third Quarter Ended September 30, 2007 River Offshore Supply Ocean Passenger TOTAL Segment operating profit $2,311 $4,818 $4,070 $2,576 $13,775 Depreciation and amortization 2,524 1,181 3,678 1,590 8,973 Investment in affiliates / Minority interest (90) (181) 252 - (19
Slide 33: Appendix (cont'd)
Appendix (cont’d) (In $ 000's) Nine Months Ended September 30, 2008 River Offshore Supply Ocean Passenger TOTAL Segment operating profit $5,073 $12,401 $48,007 ($7,205) $58,276 Depreciation and amortization 9,544 3,628 14,584 2,627 30,383 Investment in affiliates / Minority interest (118) (864) (131
Slide 34: Appendix (cont'd)
Appendix (cont’d) (In $ 000's) Nine Months Ended September 30, 2007 River Offshore Supply Ocean Passenger TOTAL Segment operating profit $9,262 $13,076 $11,040 ($1,149) $32,229 Depreciation and amortization 7,134 3,175 10,968 4,153 25,430 Investment in affiliates / Minority (72) (520) 543 - -49 Othe
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