Ultrapetrol Files to Sell Shares

Ultrapetrol (ULTR) is looking to sell $201 million in a stock offering, although it has not set the terms nor the number of shares.  Lead underwriters are UBS Investment Bank and Bear Stearns; co-managers are: Jefferies, Raymond James, and DVB Capital Markets.  Ultrapetrol will use the proceeds from the offering for funding acquisitions, construction costs, shipyard expansion, and for general corporate purposes.

This is after the company posted its annual results: Full year 2006 revenues of $173.5 million were 38% higher than full year 2005 revenues; Full year 2006 EBITDA was $62.4 million, up 46% annually on adjusted basis; Fourth quarter 2006 EBITDA of $13.1 million, compared $3.0 million in Q4 2005.  Full year 2006 net income was $10.5 million, compared to $14.6 million in 2005. The 2005 results included the net gain of $13.1 million on the sale of the “Cape Pampas”. Diluted net income per share in 2006 was $0.58 compared to $0.94 in 2005. Ultrapetrol had a net loss of $2.8 million in the fourth quarter 2006, a significant improvement on the net loss of $7.8 million experienced in the equivalent period of 2005.

Here is the breakdown of its business, based in the Bahamas: River Business (502 barges)river barges and pushboats that transport dry bulk and liquid cargos in South America; Offshore Supply and transport for offshore exploration and production companies (4 ships, 4 more being built); Ocean Business owns and operates eight oceangoing vessels for liquids and dry bulk; Passenger Business fleet consists of two vessels with a total capacity of approximately 1,600 passengers primarily in the European cruise market.

Jon C. Ogg
March 22, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.