Categorized | National News

Ultrapetrol Reports High Profits

A Bahamian industrial shipping company has announced that it has seen adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) over the first quarter of 2012.

Ultrapetrol Bahamas, which provides marine transportation in three markets like river, offshore supply business and ocean business, recorded a profit $64.5 million.

This is compared to the $58.3 million in the same period of 2011.

According to a press release issued yesterday, said the adjusted EBITDA recorded amounted $7.3 million.

This amounted to $6.4 million from offshore supply business segment adjusted EBITDA, $0.1million from ocean business segment and $1.3 million from other financial income.

Len Hoskinson, Ultrapetrol’s chief financial officer, said the company is experiencing stronger results from our offshore segment as new ships are added to its fleet.

“We have adapted our Capex based on our river business’ 2012 needs. We are building tank barges for our fleet and we have been producing barges for third parties as well. We believe that we have a well-balanced financial situation which will allow us to further strengthen the company’s leading commercial position as its new assets are put into operation.”

Ultrapetrol also recorded a net loss of $13.1 million.

Officials blame this on deferred taxes, which include the effect of a $0.7 million gain on an unrealised foreign exchange loss on U.S. dollar-denominated debt of the company’s Brazilian subsidiary in the company’s offshore supply business.

Meantime, offshore supply business segment adjusted EBITDA increased 78 per cent with the same period in 2011.

Excluding the effect of this gain, the net loss and net loss per share were recorded at $13.8 million and $0.47 per share, respectively.

Meanwhile, the company continues to grow.

Ultrapetrol announced that it will continue with the construction of the company’s PSV new building programme of four vessels in the offshore supply business.

With the addition of these vessels, the company will have a slate of nine vessels in its PSV fleet.

Ultrapetrol also sold and delivered five jumbo dry barges built in Punta Alvear in South America to a third party for export to Columbia.

In addition, the company is expected to deliver three push boats in its River Business Fleet in the second quarter of 2012.

This will increase that fleet from six to 11.

Ultrapetrol President and CEO Felipe Menendez said the company is continuing to focus on a growth strategy to satisfy its shareholders.

“Our ninth new PSV is now undergoing sea trials and is scheduled to be delivered on a favourable charter in Brazil later this month and two push boats in our re-engining and re-powering programme are expected to be in service by the end of the second quarter. Additionally, we sold and delivered five jumbo barges built at our Punta Alvear Yard to a third party and shipped them to Colombia in March 2012 together with a pushboat and 14 barges previously sold to the same buyers,” he said.

“The growth in the cargo volume and the expansion of the seeded area, despite this year’s drought, confirm our view that there is a unique opportunity to capitalise on the efficiencies of our integrated river business unit. Our fully automated yard continues to produce new jumbo size barges for our fleet and for third parties at profitable levels and our new fuel efficient pushboats allow us to progressively capture larger margins from our freights. The unprecedented expansion of the offshore activity in Brazil finds us ideally positioned to operate our new fleet of state-of-the-art PSVs. These elements have been the pillars of our investment plan over the past few years and we believe they will enhance the company’s future earnings power.”

Written by Jones Bahamas

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