Ultrapetrol (bahamas) Limited · OTC:ULTRF
Ultrapetrol (bahamas) — Q2 2008 Earnings Presentation
38 slides from Ultrapetrol (bahamas)'s earnings presentation, Aug 13, 2008
Slide 1: Second Quarter 2008 Earnings Call
Second Quarter 2008 Earnings Call August 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: 2Q 2008 Ultrapetrol's Highlights
2Q 2008 Ultrapetrol’s Highlights Revenues $82,978 $55,426 50% (1) EBITDA $28,978 $16,313 78% Non-Cash Losses on FFAs - 3,073 - Net Income $11,714 $943 1142% EPS (In $) $0.36 $0.03 1100% Ex-items Non-Cash Losses on FFAs - 3,073 - Provision for Income Tax on Unrealized Foreign Currency Gains on USD-de
Slide 4: 1H 2008 Ultrapetrol's Highlights
1H 2008 Ultrapetrol’s Highlights Revenues $150,379 $100,852 49% EBITDA (1) $63,235 $32,826 93% Non-Cash (Gains) Losses on FFAs (6,311) 3,073 -305% Cash Losses / Settlements on FFAs already accounted for in our December 31, 2007 Financial Results (5,408) - - Net Income $29,053 $2,907 899% EPS (In $)
Slide 5: 2Q 2008 & Year to Date River Business Developments
2Q 2008 & Year to Date River Business Developments ► Ongoing construction of new barge building yard → currently receiving equipments for installation and construction of facility progressing as planned • Most modern of its kind in South America → expected to be in production by 1Q 2009 • Will allow
Slide 6: Year-on-Year River Business Highlights
Year-on-Year River Business Highlights Volumes (In Metric Tons) 1,189,527 1,126,855 6% Revenues $34,855 $23,497 48% Voyage Expenses (17,928) (9,629) 86% Running Costs (9,005) (6,142) 47% G&A (2,248) (1,898) 18% Other, net 84 (118) -171% Voyage Expenses Year-on-Year Increase ►$5,292 due to fuel price
Slide 7: 2Q 08 vs 2Q 07 Freight Rate Increase Breakdown
2Q 08 vs 2Q 07 Freight Rate Increase Breakdown 2Q 08 2Q 07 Difference Average Freight Rate ($ / Ton) $27.74 $20.88 33% Difference $6.86 Of which Fuel adjustment explains $4.66, or 22% Average price increases and cargo mix explain $2.20, or 11% 29 $27.74 27 +11% 25 23 +22% $20.88 21 19 17 15 2Q 2Q 07
Slide 8: 2Q 08 vs 2Q 07 EBITDA Margin & Fuel Adjustment
2Q 08 vs 2Q 07 EBITDA Margin & Fuel Adjustment Revenues $34,855 $23,497 48% Segment EBITDA $5,758 $5,710 1% Effect of Fuel Adjustment ($5,292) - - Revenues excluding Effect of Fuel Adjustment $29,563 - - 1,400 Diesel Oil - IFO 180 Price Gap 1,200 1,000 800 600 2Q 08 Avg. Price Gap = $499.5 / MT 400
Slide 9: Hidrovia Market Overview
Hidrovia Market Overview Paraguayan Soybean Crop Corumbá Mine Iron Ore Exports (1) 8,000 1,113 6,800 7,000 6,200 500 448 6,000 400 492 357 5,000 308 4,000 3,640 300 247 3,000 200 147 2,000 98 100 1,000 0 0 2006 2007 2008E 2Q 2Q 07 08 April May June Source: FAS - USDA (1) Industry sources 9
Slide 10: 2Q 2008 & Year to Date Offshore Supply Business Developments
2Q 2008 & Year to Date Offshore Supply Business Developments Five vessels operated during 2Q 2008: Seven vessels under construction: ► Brazilian Market ► Brazil - 1 Vessel • Two vessels committed until 2Q 2009 • UP Rubi → delivery expected during 1Q 2009 ► North Sea Market ► India - 4 Vessels • One
Slide 11: Year-on-Year Offshore Supply Business Highlights
Year-on-Year Offshore Supply Business Highlights Revenues $10,974 $10,675 3% Voyage Expenses (491) (424) 16% Running Costs (4,427) (3,185) 39% G&A (1,826) (1,051) 74% (1) Other Operating Income 384 - - Other, net (155) (184) -16% OPERATING HIGHLIGHTS Average Daily Revenues (1) $25,281 $27,219 -7% Av
Slide 12: Offshore Supply Fleet Overview
Offshore Supply Fleet Overview Fleet in Operation 2 UP Esmeralda 840 m 2005 North Sea Spot Market 2 UP Safira 840 m 2005 North Sea Time Charter Apr-09 2 UP Topazio 840 m 2006 North Sea Time Charter Sep-08 2 UP Agua-Marinha 840 m 2006 Brazil Time Charter Apr-09 2 UP Diamante 840 m 2007 Brazil Time Ch
Slide 13: Offshore Supply Market Overview
Offshore Supply Market Overview 2006 - - To date North Sea Spot Rates (1) 2Q 08 Fleet Employment Distribution (2) 40,000 34,578 35,900 35,000 28,500 Spot 30,000 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 Sea Fle
Slide 14: 2Q 2008 & Year to Date Ocean Business Operational Developments
2Q 2008 & Year to Date Ocean Business Operational Developments ► For almost the whole 2Q 2008 our three OBO vessels operated under their 4TC Capesize Routes Index - linked time charters which expire during 1H 2009 ► During 2Q 2008, our Capesize Princess Marisol entered into a time charter tied to th
Slide 15: 2Q 2008 & Year to Date Ocean Business Financial Developments
2Q 2008 & Year to Date Ocean Business Financial Developments ► During 2Q 2008 we bought back 274 days in cleared FFAs, mainly offsetting the positions previously sold for 3Q and 4Q 2008, while simultaneously selling 274 days in OTC FFAs for these same periods: • Significantly reduced our future work
Slide 16: Year-on-Year Ocean Business Highlights
Year-on-Year Ocean Business Highlights FINANCIAL HIGHLIGHTS (In $ 000's) 2Q 08 2Q 07 % Change Revenues $34,265 $12,760 169% Voyage Expenses (1,715) (166) 933% Running Costs (8,737) (3,539) 147% G&A (1,791) (2,141) -16% Non-Cash Losses on FFAs - (3,073) - Cash Losses on FFAs (449) - - Other, net (117
Slide 17: OBO Fleet Average TC and Gross Profit Contribution
OBO Fleet Average TC and Gross Profit Contribution (1), (3), (4), (5), (6), (7), (8) OBO Fleet Average Daily Time Charter Rates (1) OBO Fleet Gross Profit Contribution (1), (2), (3),( 5), (6), (8) Actual Projected 60 70,000 61,084 50 60,000 57,077 $5.3 M 50,000 40 35,262 $16.9 M 40,000 30 29,221 30,
Slide 18: Princess Marisol TC and Gross Profit Contribution
Princess Marisol TC and Gross Profit Contribution Princess Marisol Average Time Princess Marisol Gross (1) (1), (5) Charter Rates Profit Contribution (1), (2), (3), (4), (6) Actual Projected 140,000 Actual Projected 127,006 40 130,000 35 120,000 115,958 $27.9 M 112,678 30 110,000 25 100,000 20 15 90
Slide 19: FFAs 2009
FFAs 2009 ► We sold 547.5 days of the 4TC Capesize Routes Index at USD 91,833 per day ► When added to the 180 days previously sold at USD 51,000, we have covered a total of 727.5 days in 2009 at an average of USD 81,730 of the index vessel ► Assuming a 25% discount, the FFAs sold for 2009 provide co
Slide 20: Ocean Fleet Overview
Ocean Fleet Overview Princess Susana 152,301 1986 BCI 4TC Related Time Charter Apr / Jun 09 Suezmax OBO / Capesize Vessels Princess Katherine 164,100 1986 BCI 4TC Related Time Charter Jan / Mar 09 Princess Marisol 166,013 1984 BCI 4TC Related Time Charter Oct 08 Miranda I 6,575 1995 Time Charter Sep
Slide 21: Drybulk Industry Overview
Drybulk Industry Overview 4TC Capesize Routes 250,000 230,818 192,198 200,000 150,000 100,000 50,000 33,110 Source: Baltic 0 Exchange Average 2004-2006 2007 2008 Baltic Forward Assessment - August 11, 2008 Period Route Average Current Rate (Spot) 115,220 BFA Aug / Sep 2008 133,160 BFA 4Q 2008 145,50
Slide 22: 2Q 2008 Passenger Business Highlights
2Q 2008 Passenger Business Highlights ► One vessel, Blue Monarch, in operation during 2Q 2008 ► Started cruising on 7-day and 14-day cruises in the Aegean Sea on April 23, 2008 ► 2Q 2008 seasonally slower in the Aegean → $(2.9) million EBITDA; however, average occupancy of lower berth capacity is es
Slide 23: Current Fleet List
Current Fleet List ULTRAPETROL OWNED FLEET AS OF AUGUST 12, 2008 RIVER FLEET Number Capacity Pushboats (1) 29 104,400 BHP Pushboats Under Construction 1 8,325 BHP Dry Barges 547 902,700 Dwt Tank Barges 44 95,578 m 3 Transfer Station 1 35,000 Dwt OFFSHORE SUPPLY FLEET Number Deck Area PSVs in Operati
Slide 24: Expected Expansion CAPEX Program
Expected Expansion CAPEX Program Per Segment (In $ Million) 2008 2009 2010 Total Barge enlargement 12 12 12 36 Barge building yard 18 28 28 74 Re-engining project 14 25 7 46 Barges / tugs acquisitions & bottom replacement program 27 4 - 31 Total River Business 71 69 47 187 Offshore Supply Business B
Slide 25: Business Outlook
Business Outlook ► River ► Offshore Supply § Volumes on the River Business are § We expect Offshore Supply Business currently growing; freight rate scenario revenues to grow substantially as from has been and is expected to continue 2009 consistent with scheduled stable / strong deliveries of new PS
Slide 26: Year-on-Year Ultrapetrol's Income Statement
Year-on-Year Ultrapetrol’s Income Statement Revenues $82,978 $55,426 $150,379 $100,852 Voyage Expenses (22,468) (13,163) (37,700) (23,091) Running Costs (25,517) (18,401) (46,313) (33,047) D&A (10,115) (8,405) (19,959) (16,459) G&A (5,967) (5,375) (11,298) (9,868) Other Operating Income 372 2 2,423
Slide 27: Year-on-Year Ultrapetrol's Income Statement
Year-on-Year Ultrapetrol’s Income Statement Attributable to River Business $34,855 $23,497 $62,011 $45,025 38% Attributable to Offshore Supply Business 10,974 10,675 20,161 19,070 6% Attributable to Ocean Business 34,265 12,760 65,323 25,513 156% Attributable to Passenger Business 2,884 8,494 2,884
Slide 28: Year-on-Year Ultrapetrol's Income Statement (cont'd)
Year-on-Year Ultrapetrol’s Income Statement (cont’d) Operating Profit $19,283 $10,084 $37,532 $18,452 103% Financial Expenses (4,409) (4,577) (10,856) (9,674) 12% Financial Income 205 1,083 647 1,273 -49% Net Income on FFAs (449) (3,073) 5,862 (3,073) - Investment in Affiliates / Minority Interest (
Slide 29: Ultrapetrol's Balance Sheet
Ultrapetrol’s Balance Sheet Cash & Cash Equivalents $30,457 $64,262 -53% Accounts Receivables 23,079 15,680 47% Other Current Assets 33,115 25,299 31% Vessels and Equipment, Net 520,677 462,292 13% Noncurrent Other Receivables 11,177 10,073 11% Noncurrent Restricted Cash 6,558 20,168 -67% Other Nonc
Slide 30: Thank You Q & A
Thank You Q&A 30
Slide 31: Appendix
Appendix 2008 2007 Net Income $11,714 $943 Plus Financial expense 4,409 4,577 Income taxes 2,740 2,388 Depreciation and amortization 10,115 8,405 EBITDA Net Income $29,053 $2,907 Plus Financial expense 10,856 9,674 Income taxes 3,367 3,786 Depreciation and amortization 19,959 16,459 EBITDA (1) EBITD
Slide 32: Appendix (cont'd)
Appendix (cont’d) River Offshore Supply Ocean Passenger TOTAL Segment operating profit $2,593 $3,402 $17,122 ($3,834) $19,283 Depreciation and amortization 3,110 1,212 4,859 934 10,115 Investment in affiliates / Minority interest 202 (185) (77) - (60) Other, net (147) 30 1 - (116) Net loss on FFAs -
Slide 33: Appendix (cont'd)
Appendix (cont’d) River Offshore Supply Ocean Passenger TOTAL Segment operating profit $3,502 $4,925 $3,363 ($1,706) $10,084 Depreciation and amortization 2,325 1,090 3,554 1,436 8,405 Investment in affiliates / Minority interest 14 (200) 126 - (60) Other, net (131) 16 17 (28) (126) Net loss on FFAs
Slide 34: Appendix (cont'd)
Appendix (cont’d) River Offshore Supply Ocean Passenger TOTAL Segment operating profit $3,365 $7,352 $32,551 ($5,736) $37,532 Depreciation and amortization 6,165 2,378 9,713 1,703 19,959 Investment in affiliates / Minority interest 78 (425) (127) 0 (474) Other, net (327) 30 6 - (291) Net income on F
Slide 35: Appendix (cont'd)
Appendix (cont’d) River Offshore Supply Ocean Passenger TOTAL Segment operating profit $6,982 $8,534 $6,620 ($3,684) $18,452 Depreciation and amortization 4,610 1,994 7,292 2,563 16,459 Investment in affiliates / Minority 18 (339) 291 - -30 Other, net (284) 16 41 (28) (255) Net income on FFAs - - (3
Slide 36: Appendix (cont'd)
Appendix (cont’d) 2008 2007 Segment operating profit $2,593 $3,502 Depreciation and amortization 3,110 2,325 Investment in affiliates / Minority interest 202 14 Other, net (147) (131) Adjustments: Barge Positioning 60 350 2008 2007 Segment operating profit $17,122 $3,363 Depreciation and amortizatio
Slide 37: Appendix (cont'd)
Appendix (cont’d) 2008 2007 Segment operating profit $3,365 $6,982 Depreciation and amortization 6,165 4,610 Investment in affiliates / Minority interest 78 18 Other, net (327) (284) Adjustments: Barge Positioning 3,202 850 2008 2007 Segment operating profit $32,551 $6,620 Depreciation and amortizat
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