Ultrapetrol (bahamas) Limited · OTC:ULTRF
Ultrapetrol (bahamas) — Oppenheimer 3rd Annual Industrials Conference (October 2008)
25 slides from Ultrapetrol (bahamas)'s conference presentation, Oct 1, 2008
Slide 1: Oppenheimer 3rd Annual Industrials Conference
Oppenheimer 3rd Annual Industrials Conference New York - October 2, 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 -> Biggest player in the Hidrovia -> Significant volume growth Offshore Supply Business Ocean Business -> Five modern PSVs operating in -> Three versatile Suezmax OBO vessels Brazil and the North Sea -> One Capesize vessel -> Nine PSVs under construction -> Four Handysize / Product Ta
Slide 4: River Business
RIVER BUSINESS 4
Slide 5: River Business Overview
River Business Overview The Hidrovia Paraguayan Soybean Production(1) 8,000 7,200 6,800 7,000 6,200 6,000 5,000 4,000 3,640 3,000 2,000 1,000 0 2006 2007 2008E 2009E Corumbá Iron Ore Production(2), (3) 12 10 9.7 8 6 4 2.5 2 0 -> Runs over more than 2,200 miles RTZ CVRD MMX • Comparable in length to
Slide 6: Growth programs to enlarge our capacity
We have 3 ambitious growth programs underway to enlarge significantly our capacity… 1) Construction of new capacity - Barge Building Yard 2) Expansion of existing capacity - Barge Enlargement • Estimated total cost of $24.0 million for • $36.0 million CAPEX through 2010 construction and equipment •
Slide 7: 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% 35,000 27% 30% • Replacement of existing diesel engines by more 2
Slide 8: Offshore Supply Business
ULTRAPETROL IRE SUPPLY BUSINESS
Slide 9: 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 high quality vessels -> Faste
Slide 10: 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 2 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
Slide 11: 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 (subje
Slide 12: Offshore Supply Market Overview
Offshore Supply Market Overview 2006 - - To date North Sea Spot Rates (1) YTD 08 Fleet Employment Distribution (2) 40,000 34,578 35,900 35,000 30,000 Spot 25,000 25,500 North Sea Committed 20,000 23,455 North Sea 15,000 17,777 10,000 Committed 5,000 9,262 Brazil 0 2006 2007 2008 UP North Sea Fleet D
Slide 13: 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 14: Ocean Business
OCEAN BUSINESS 14
Slide 15: 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
Slide 16: 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 61,084 47.2 50 60,000 54,961 50,000 40 40,000 35,262 30 27.0 29,221 30,000 20 20,000 10,000 10 0 0 FY 07
Slide 17: Princess Marisol TC and Gross Profit Contribution
Princess Marisol TC and Gross Profit Contribution -> Sold 65 days in 4Q 08 with FFAs at an average rate of $154,846 (1), (5), (6) Princess Marisol Average Time Princess Marisol Gross (1) Charter Rates Profit Contribution (1), (2), (3), (4), (6) Actual Projected Actual Projected 140,000 40 130,000 12
Slide 18: 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
Slide 19: 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 Jul / Aug and expectations for Sep / Oct indicate high levels of occupancy with improved results with respect to 2Q 08 -> Vessel in market for sale
Slide 20: 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 -> On September 15, 2008, we signed a Senior Credit Loan facility with IFC fo
Slide 21: Outlook by business: River, Offshore Supply, 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 22: Thank You Q&A
Thank You Q&A 22
Slide 23: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA Year Ended December 31, LTM ended All figures in $ 2004 2005 2006 2007 June 2008 000's Net 5,139 14,568 10,526 4,441 30,587 income Financial 16,134 19,141 19,025 20,178 21,360 expense Financial gain on extinguishment of (1,344) - 0 - - debts (a) Financial losse
Slide 24: Reconciliation of Revenues to Gross Profit Contribution
Reconciliation of Revenues to Gross Profit Contribution Offshore Supply 2007 Business Revenues $41,514 Voyage (1,822) Expenses Running (13,991) Costs Profit Gross $25,701 Contribution 24
Slide 25: Slide 25
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