Ultrapetrol Reports Financial Results for Fourth Quarter and Full Year 2012

Ultrapetrol Reports Financial Results for Fourth Quarter and Full Year 2012

NASSAU, Bahamas, March 14, 2013 (GLOBE NEWSWIRE) -- Ultrapetrol (Bahamas)
Limited (Nasdaq:ULTR), an industrial transportation company serving marine
transportation needs in three markets (River Business, Offshore Supply
Business and Ocean Business), today announced financial results for the fourth
quarter and full year ended December 31, 2012.

Full Year 2012 highlights:

  *On December 12, 2012, we announced the closing of the Investment Agreement
    entered into on November 13, 2012, with Sparrow. Pursuant to such closing,
    we sold 110,000,000 shares of newly issued common stock to Sparrow at a
    purchase price of $2.00 per share and received proceeds of $220.0 million
    from the transaction;
    
  *Recorded full year 2012 revenues of $313.2 million;
    
  *Recorded adjusted consolidated EBITDA before financial income and other
    financial expense is $34.1 million for 2012; ^1 which includes adjusted
    EBITDA of $3.8 million from our River Business segment, adjusted EBITDA of
    $27.7 million from our Offshore Supply Business segment, and adjusted
    EBITDA of $2.7 million from our Ocean Business segment. After including
    $(2.1) million from financial income and other financial expense (mainly
    attributable to foreign currency exchange variance), our adjusted
    consolidated EBITDA for 2012 was $32.0 million;
    
  *Total adjusted net loss and adjusted net loss per share of $(46.0) million
    and $(1.30), respectively, in 2012, which excludes the effect of a
    non-cash loss of $(16.0) million corresponding to an impairment charge of
    our ocean tanker Amadeo, a $1.4 million gain for deferred taxes on an
    unrealized foreign currency exchange loss on U.S. dollar-denominated debt
    of our Brazilian subsidiary in our Offshore Supply Business and a $(0.9)
    million non-cash loss of expenses from our DVB/Natixis loan facility
    related to its partial extinguishment; and includes a $2.1 million gain
    related to the sale of fourteen dry barges which were subsequently leased
    back to the Company (for accounting purposes such gain will deferred over
    the term of the lease up to the present value of the lease payments). ^2
    Before including any of these effects, the net loss and net loss per share
    are $(63.7) million and $(1.80) per share, respectively;
    
  *FY 2012 Adjusted EBITDA for our Offshore Supply Business segment increased
    39% to $27.7 million as compared to $19.9 million in the same period of
    2011;

Fourth Quarter 2012 and subsequent events highlights:

  *During the fourth quarter of 2012, we entered into a barge building
    contract whereby we agreed to build and sell from our Punta Alvear yard 13
    newbuilt jumbo dry barges to a third party with deliveries between March
    and June 2013;
    
  *During the fourth quarter of 2012, we entered into a Transshipment
    Services Agreement with a non-related third party to provide storage and
    transshipment services of cargo from river barges to ocean export vessels
    through one of our ocean going barges. Under such Agreement, the Company
    agreed to transship approximately 800,000 metric tons per year until June
    1, 2016;
    
  *During the fourth quarter of 2012, we entered into a barge building
    contract whereby we agreed to build and sell from our Punta Alvear yard
    two newbuilt jumbo dry uncovered barges to a third party;
    
  *During the fourth quarter of 2012, we delivered from our barge building
    facility a total of 15 barges related to the barge building contracts
    entered into with third parties; and

^1 For a reconciliation of non-GAAP measures, please see the tables included
under the supplemental information section of this release.

^2 For a detailed explanation of these adjustments and other adjustments
elsewhere in this release, see "Overview of Financial Results" and the tables
included under the Supplemental Information section of this release.

  *On January 23, 2013, we repurchased $80.0 million of our outstanding
    Convertible Senior Notes in accordance with the provisions of the
    indenture governing the Convertible Senior Notes. The Convertible Senior
    Notes were repurchased at par plus accrued and unpaid interest to, but
    excluding, the date of repurchase, for a total price of $1,001.61 per
    $1,000.00 principal amount of Convertible Senior Notes. No Convertible
    Senior Notes remain outstanding.

Felipe Menéndez, Ultrapetrol's President and Chief Executive Officer, stated,
"At the end of 2012, we received a $220.0 million capital infusion from
Southern Cross Group. This is a very important transaction that we believe
will have a very positive effect for the Company. It strengthens our balance
sheet, reduces our net debt and opens new doors for our future growth. While
our River Business was impacted by a severe drought during the 2012 planting
season combined with very low river levels during critical months of the year,
we have entered 2013 in a strong position to take advantage of significantly
improved conditions on the river and we have implemented measures to improve
our results. This year's planting season has seen healthy rainfall and experts
anticipate strong soybean yields in the regions we serve. In addition, we have
been successfully renewing Contracts of Affreightments in this segment, which
will enable the Company to take advantage of a stronger rate environment. We
also continue to benefit from our new building yard, which is maintaining high
productivity levels and is fully employed, building barges for both the
Company and third parties. We believe that the combined effect of these
developments, as well as our on-going re-engining and re-powering initiatives,
will have a long-lasting positive impact on our River Business segment."

Mr. Menéndez continued, "We continue to grow our Offshore Supply Business and
currently have nine vessels in operation, eight contracted with Petrobras and
one with Nexen Petroleum UK Ltd. Our UP Amber, the second PSV which was under
construction in India was delivered during the first quarter of 2013. We look
forward to the delivery of two additional PSVs, with the first expected to
take place during the second quarter of 2013. In addition, we have completed
the refinancing for four PSVs and expect to have the balance of the program
fully financed by the third quarter of 2013."

Mr. Menéndez concluded, "As we progress through 2013, we anticipate a strong
year with higher transportation demand at increased average freight rates, an
offshore fleet which will show progressive increases in operational results as
new vessels come into service at attractive time charter rates and a good
performance of our ocean feeder container service."

Overview of Financial Results

Total revenues for the fourth quarter 2012 were $86.3 million as compared with
$96.2 million in the same period of 2011.

Adjusted EBITDA for the fourth quarter 2012 was $6.2 million as compared with
$16.1 million in the same period of 2011. For a reconciliation of adjusted
EBITDA to cash flows from operating activities, please see the tables at the
end of this release.

Adjusted net loss for the fourth quarter of 2012 was $(13.4) million, or
$(0.26) per share as compared with net loss of $(7.0) million, or $(0.24) per
share, during the same period of 2011. Fourth quarter 2012 adjusted net loss
excludes the effect of a non-cash loss of $(16.0) million corresponding to an
impairment charge of our ocean tanker Amadeo, a $(0.9) million non-cash loss
of expenses from our DVB/Natixis loan facility related to its partial
extinguishment and a $0.1 million gain for deferred taxes on an unrealized
foreign currency exchange loss on U.S. dollar-denominated debt of our
Brazilian subsidiary in our Offshore Supply Business; and includes a $1.3
million gain related to the sale of eight dry barges which were subsequently
leased back to the Company (for accounting purposes such gain will deferred
over the term of the lease up to the present value of the lease payments).
Before including any of these effects, the net loss and net loss per share for
the fourth quarter of 2012 are $(31.6) million and $(0.60) per share,
respectively.

Len Hoskinson, Ultrapetrol's Chief Financial Officer, said, "We experienced
challenging operating conditions in 2012 in our River Business. However, a
conservative profile of our debt and our diversified portfolio of businesses
helped us to execute our growth plans as originally conceived. We have
successfully concluded the new $84.0 million financing of our Indian PSV
newbuild program which is now jointly financed DVB, NIBC and ABN Amro Bank.
The $220.0 million equity infusion reduces our leverage and the resulting
increased liquidity puts us on a stronger footing for the funding of our
future growth plans."

Business Segment Highlights

River

Fourth quarter 2012 River Business segment adjusted EBITDA decreased to a
$(0.8) million loss from a $10.6 million gain in the same period of 2011. For
a reconciliation of segment adjusted EBITDA to operating profit (loss), please
see the tables at the end of this release.

With soy and its by-products representing between 60% and 65% of our cargo,
fourth quarter results were affected by a severe drought that impacted the
soybean production in the region earlier in the year and significantly reduced
the volumes of soy products transported. In addition, lower than usual water
levels in the Upper Paraguay River impaired our ability to carry iron ore. The
combined effect was a 28% decrease in the volume of cargo transported in the
fourth quarter of 2012 as compared with the same period of 2011.

Our operating costs in the River Business, particularly manning and
maintenance costs, have been impacted by salary increases and by inflationary
pressure on costs not adjusted by a proportional devaluation of the local
currencies with respect to the U.S. dollar.

According to the United States Department of Agriculture, the soybean crop in
Paraguay for 2012 was 4.4 million tons down from 7.1 million tons in 2011, a
decrease of 39% year over year. This decrease is mainly attributable to the
effects of a severe drought and higher than average temperatures in January
and February 2012 in large parts of Argentina, central Brazil, and Paraguay.
Soybean,particularly the early variety crop in Paraguay suffered severe
impacts on its yields. Compounding this effect, low river levels limited the
draft at which we could operate through the Upper Paraguay River during the
third and fourth quarter. As a result, longer transit times and fuel costs had
a substantial effect on our river operations.

Despite the severe drought in 2012, the seeded area has grown considerably for
2013, driven by the strong prices of soybean and other agricultural
commodities. Argentina, Brazil, Bolivia, Paraguay and Uruguay are estimated to
account for approximately 55% of world soybean production in 2013, as compared
to 30% in 1995. This steady long-term growth trend represents an important
demand driver for Ultrapetrol's River Business.The Company continues to add
capacity and implement various initiatives to expand margins in an effort to
profitably capitalize on the long-term growing demand of the agricultural
sector along the Hidrovia, which remains strong.

The Company's barge building shipyard, which we believe is one of the most
modern in South America, has been in operation since the first quarter of
2010. During 2012, we delivered a total of 37 barges in connection with third
party contracts entered into by the Company.

In addition to these contracts, in the fourth quarter we entered into another
contract to build 13 dry barges for a total of $12.7 million of which 30% has
already been advanced by the buyer. The yard will continue to be fully
employed until the end of 2013, focusing on the construction of barges to be
delivered under the shipbuilding contracts already signed and also barges for
the Company's River Business. The Company has successfully continued its
re-engining and re-powering programs that aim to change the engines on a
substantial portion of its line pushboats from diesel to heavy fuel consuming
ones. Having finalized the re-engining of two pushboats in the second and
third quarters of 2012, six heavy fuel-consuming pushboats are now in
operation (compared to four pushboats in operation a year ago) and the next
re-engined pushboat is expected to commence operation within the fourth
quarter of 2013. This program has shown its potential to lead to substantial
savings in fuel expense and to an increase in tow size and navigation speed,
which we believe will enhance our EBITDA margins in the future.

Offshore Supply

In the Offshore Supply Business, with the commencement of operation of our UP
Jade in August 2012 we now operate a fleet of nine PSVs. The adjusted EBITDA
generated by the Offshore Supply Business segment during the fourth quarter of
2012 was $8.1 million, 35% higher than the $6.0 million generated in the same
period of 2011. For a reconciliation of segment adjusted EBITDA to operating
profit (loss), please see the tables at the end of this release.

Total revenues from the Offshore Supply Business for the fourth quarter of
2012 increased by $4.5 million, or 25%, to $22.5 million as compared to $18.0
million in the same period of 2011. This increase was primarily attributable
to the operation of our UP Jade, the full quarter operation of our UP Jasper
and to the higher operating days of our UP Diamante during the fourth quarter
of 2012 as compared to the same period of 2011 when it underwent drydock.

As already announced, we continued our PSV building program in India wherefrom
two ships have already been delivered. The first PSV, UP Jade, commenced its
time charter with Petrobras in August 2012 and the second vessel, UP Amber,
was delivered in January 2013. Two additional vessels remain to be delivered,
the first of which, UP Pearl, is expected to take place during the second
quarter of 2013.

Ocean

The Ocean Business segment adjusted EBITDA decreased by $2.3 million from $5.0
million for the full year of 2011 to $2.7 million for 2012. In the fourth
quarter of 2012 this decrease was of $2.0 million when compared to the same
period of 2011 mainly as a result of the drydock of our Argentino in the
fourth quarter of 2012. For a reconciliation of segment adjusted EBITDA to
operating profit (loss), please see the tables at the end of this release.

Revenues from the Ocean Business decreased from $17.1 million in the fourth
quarter of 2011 to $15.6 million in the same period of 2012. While our Product
Tanker fleet has experienced increases in revenues as a result of charter rate
adjustments, overall ocean business revenues decreased mainly as a result of
the drydock undergone by our Argentino and by the offhire days of our Amadeo
on account of repairs, both during the fourth quarter of 2012.

The Company operated a total of four vessels in its Product Tanker fleet in
the fourth quarter of 2012 (Miranda I, Amadeo, Alejandrina, and Austral) which
continue to be employed in the South American coastal trade on charters with
oil majors that operate in the region.

In our Ocean Business, inflationary pressures particularly in manning costs
not compensated by a proportional devaluation of the local currency against
the U.S. dollar have resulted in increased operating costs. The volumes in our
container service particularly in the southbound leg have been sustained at
high levels.

Use of Non-GAAP Measures

Ultrapetrol believes that the disclosed non-Generally Accepted Accounting
Principles, or GAAP, measures such as adjusted EBITDA, adjusted net income and
any other adjustments thereto, when presented in conjunction with comparable
GAAP measures, are useful for investors to use in evaluating the liquidity of
the company. These non-GAAP measures should not be considered a substitute
for, or superior to, measures of liquidity prepared in accordance with GAAP. A
reconciliation of adjusted EBITDA to segment operating profit and cash flow
from operations is presented in the tables that accompany this press release.

Investment Community Conference Call

Ultrapetrol will host a conference call for investors and analysts on Friday,
March 15, 2013, at 10:00 a.m. EDT accessible via telephone and Internet with
an accompanying slide presentation. Investors and analysts may participate in
the live conference call by dialing 1-888-282-0576 (toll-free U.S.) or
+1-212-547-0230 (outside of the U.S.); passcode: ULTR. Please register at
least 10 minutes before the conference call begins. A replay of the call will
be available for one week via telephone starting approximately one hour after
the call ends. The replay can be accessed at 1-866-419-2884 (toll-free U.S.)
or +1-203-369-0764 (outside of the U.S.); passcode: 43773. The webcast will be
archived on Ultrapetrol's Web site for 30 days after the call.

About Ultrapetrol

Ultrapetrol is an industrial transportation company serving the marine
transportation needs of its clients in the markets on which it focuses. It
serves the shipping markets for containers, grain and soya bean products,
forest products, minerals, crude oil, petroleum, and refined petroleum
products, as well as the offshore oil platform supply market with its
extensive and diverse fleet of vessels. These include river barges and
pushboats, platform supply vessels, tankers and two container feeder vessels.
More information on Ultrapetrol can be found at www.ultrapetrol.net.

The Ultrapetrol (Bahamas) Limited logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3164

Forward-Looking Language

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include future operating or financial results;
pending or recent acquisitions, business strategy and expected capital
spending or operating expenses, including dry docking and insurance costs;
general market conditions and trends, including charter rates, vessel values,
and factors affecting vessel supply and demand; our ability to obtain
additional financing; our financial condition and liquidity, including our
ability to obtain financing in the future to fund capital expenditures,
acquisitions and other general corporate activities; our expectations about
the availability of vessels to purchase, the time that it may take to
construct new vessels, or vessels' useful lives; our dependence upon the
abilities and efforts of our management team; changes in governmental rules
and regulations or actions taken by regulatory authorities; adverse weather
conditions that can affect production of the goods we transport and
navigability of the river system; the highly competitive nature of the
oceangoing transportation industry; the loss of one or more key customers;
fluctuations in foreign exchange rates and devaluations; potential liability
from future litigation; and other factors. Please see our filings with the
Securities and Exchange Commission for a more complete discussion of these and
other risks and uncertainties.

ULTR – G

        Supplemental Information: Summary consolidated financial data

The following summary financial information set forth below is for the years
ended December 31, 2012, 2011, 2010, 2009 and 2008 and has been derived from
the Company's Financial Statements. Operations of our Passenger Business are
presented as discontinued operations on a net of tax basis.

  (Stated in thousands of U.S. dollars, except par value and share amounts)

                                                              
                   Year Ended December 31,
                   2012        2011        2010       2009        2008
                   (Dollars in thousands)
Statement of                                                   
Operations Data:
Revenues            $313,169  $304,482  $230,445 $220,529  $303,575
Operating and
manufacturing       (254,427)   (224,607)   (150,922)  (140,607)   (164,476)
expenses ^(1)
Depreciation and    (43,852)    (39,144)    (34,371)   (41,752)    (38,620)
amortization
Loss on write-down  (16,000)    --          --         (25,000)    --
of vessels
Administrative and  (32,385)    (29,604)    (27,051)   (25,065)    (24,396)
commercial expenses
Other operating     8,376       8,257       617        2,844       6,513
income, net
Operating (loss)    (25,119)    19,384      18,718     (9,051)     82,596
profit
                                                              
Financial expense
and foreign         (37,844)    (37,978)    (26,417)   (23,237)    (30,542)
currency (losses)
gains, net
Financial loss on
extinguishment of   (940)       --          --         --          --
debt
Financial income    6           332         399        340         1,156
(Loss) gains on     --          (16)        10,474     241         8,816
derivatives, net
Investments in      (1,175)     (1,073)     (341)      (28)        (442)
affiliates
Other, net          (661)       (621)       (875)      (707)       (558)
                                                              
(Loss) Income       (65,733)    (19,972)    1,958      (32,442)    61,026
before income taxes
Income taxes        2,969       1,737       (6,363)    (5,355)     4,173
benefit (expense)
                                                              
(Loss) Income from
continuing          $(62,764) $(18,235) $(4,405) $(37,797) $65,199
operations
(Loss) from
discontinued        $--       $ --       $(515)   $(2,131)  $(16,448)
operations ^(2)
Net (Loss) Income   $(62,764) $(18,235) $(4,920) $(39,928) $48,751
                                                              
Net Income (loss)
attributable to     893         570         451        (90)        1,228
non-controlling
interest

                                                               
                  Year Ended December 31,
                  2012         2011       2010       2009       2008
                  (Dollars in thousands)
                                                               
Net (Loss) Income
attributable to    (63,657)     (18,805)    (5,371)     (39,838)    47,523
Ultrapetrol
(Bahamas) Limited
Amounts
attributable to                                                 
Ultrapetrol
(Bahamas) Limited:
(Loss) Income from
continuing         (63,657)     (18,805)    (4,856)     (37,707)    63,971
operations
(Loss) from
discontinued       --           --          (515)       (2,131)     (16,448)
operations
Net (loss) income
attributable to    (63,657)     (18,805)    (5,371)     (39,838)    47,523
Ultrapetrol
(Bahamas) Limited
Basic and diluted
(loss) income per
share of                                                        
Ultrapetrol
(Bahamas) Limited:
From continuing    $(1.80)    $(0.64)   $(0.16)   $(1.28)   $1.99
operations
From discontinued  --         --        $(0.02)   $(0.07)   $(0.51)
operations
                  $(1.80)    $(0.64)   $(0.18)   $(1.35)   $1.48
Basic weighted
average number of  35,382,913   29,547,365  29,525,025  29,426,429  32,114,199
shares
Diluted weighted
average number of  35,382,913   29,547,365  29,525,025  29,426,429  32,213,741
shares
                                                               
Balance Sheet Data                                              
(end of period):
Cash and cash      $222,215   $34,096   $105,570  $53,201   $105,859
equivalents
Restricted cash -  5,968        6,819       1,661       1,658       2,478
current
Working capital    108,245      32,245      98,318      68,352      135,746
^(3)
Vessels and        647,519      671,445     612,696     571,478     552,683
equipment, net
Total assets       1,010,318    830,287     823,797     732,934     825,059
Total debt ^(4)    522,410      517,762     501,657     407,539     415,507
Common Stock       1,443        339         338         338         334
Number of shares   140,419,487  30,011,628  29,943,653  29,943,653  29,519,936
outstanding
Ultrapetrol
(Bahamas) Limited  399,751      244,297     263,463     283,703     371,889
stockholders'
equity
Non-controlling    6,748        5,874       5,331       4,880       4,970
interest
Total equity       406,499      250,171     268,794     288,583     376,859
                                                               
Statement of Cash                                               
Flow Data:
Total cash flows
provided by        (3,935)      14,757      18,894      38,716      71,257
operating
activities
Total cash flows
(used in)          (32,513)     (97,863)    (54,139)    (83,598)    (87,991)
investing
activities
Total cash flows
provided by (used  224,567      11,632      87,614      (7,776)     58,331
in) financing
activities
Consolidated
EBITDA as defined  $32,045    54,028      39,296      56,445      116,859
in the Notes due
2014 ^(5)
Adjusted
Consolidated       $32,045    54,028      61,293      57,129      116,859
EBITDA ^(5)
                                                               
(1) Operating and manufacturing expenses are voyage expenses and running
costs. Voyage expenses, which are incurred when a vessel is operating under a
contract of affreightment (as well as any time when they are not operating
under time or bareboat charter), comprise all costs relating to a given
voyage, including port charges, canal dues and fuel (bunkers) costs, are paid
by the vessel owner and are recorded as voyage expenses. Voyage expenses also
include charter hire payments made by us to owners of vessels that we have
chartered in. Manufacturing expenses, which are incurred when a constructed
river barge is sold, is comprised of steel cost, which is the largest
component of our raw materials and the cost of labor. Running costs, or vessel
operating expenses, include the cost of all vessel management, crewing,
repairs and maintenance, spares and stores, insurance premiums, lubricants and
certain drydocking costs.
                                                               
(2) Net of income tax effect.
                                                               
(3) Current assets less current liabilities.
                                                               
(4) Includes accrued interest.
                                                               
(5) The following table reconciles our EBITDA as defined in the Notes due 2014
and Adjusted Consolidated EBITDA to our cash flows from operating activities:

The following table reconciles our EBITDA as defined in the Notes due 2014 and
Adjusted Consolidated EBITDA to our cash flows from operating activities:

                                                              
                    Year Ended December 31,
                    2012        2011       2010       2009        2008
                    (Dollars in thousands)
                                                              
Net cash (used in)
provided by
operating activities $(3,935)  $14,772  $20,844  $38,679   $79,902
from continuing
operations
Net cash (used in)
provided by
operating activities --          (15)       (1,950)    37          (8,645)
from discontinued
operations
Total cash flows
from operating       (3,935)     14,757     18,894     38,716      71,257
activities
 Plus                                                         
 Adjustments from
continuing                                                     
operations
Increase / Decrease
in operating assets  (2,391)     7,748      (6,974)    (14,052)    15,415
and liabilities
Expenditure for      5,978       3,478      8,204      5,242       3,105
drydocking
Income taxes         (2,969)     (1,737)    6,363      5,355       (4,173)
(benefit) expense
Financial expenses   35,793      35,426     25,925     24,248      25,128
(Losses) Gains on    --          (16)       10,474     241         8,816
derivatives, net
Gain on disposal of  3,564       --         724        1,415       --
assets
Contribution from    2,086       --         --         --          --
sale and lease back
Allowance for        (1,266)     (598)      (359)      21          (184)
doubtful accounts
Adjustment
attributable to UP   ----        ----       (21,997)   (684)       --
Offshore
declassification (1)
Net loss (income)
attributable to      (893)       (570)      (451)      90          (1,228)
non-controlling
interest
Other adjustments    (3,922)     (4,475)    (2,947)    (2,591)     (3,235)
                                                              
 Adjustments from
discontinued                                                   
operations
Increase / Decrease
in operating assets  --          15         1,435      (1,566)     1,457
and liabilities
Expenditure for      --          --         --         --          289
drydocking
Other adjustments    --          --         5          10          212
                                                              
EBITDA as defined in
the Notes due 2014   $32,045   $54,028  $39,806  $57,964   $123,546
from continuing
operations
EBITDA as defined in
the Notes due 2014   $--       $--      $(510)   $(1,519)  $(6,687)
from discontinued
operations
Consolidated EBITDA
as defined in the    $32,045   $54,028  $39,296  $56,445   $116,859
Notes due 2014
                                                              
Plus                                                           
Adjustment
attributable to UP   $--       $ --      $21,997  $684      $--
Offshore
declassification (1)
Adjusted             $32,045   $54,028  $61,293  $57,129   116,859
Consolidated EBITDA
                                                              
(1) As of September 30, 2009, our board of directors declassified UP Offshore
Bahamas as a restricted subsidiary under the terms of the indenture governing
the Notes due 2014. Subsequently, on December 3, 2010, UP Offshore Bahamas was
reclassified as a restricted subsidiary under the terms of that indenture.

The following table shows our audited consolidated balance sheet at December
31, 2012 and 2011:

                                                                  
CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2012 AND 2011
(Stated in thousands of U.S. dollars, except par value and share amounts)
                                                                 
                                                      At December 31,
                                                      2012         2011
ASSETS                                                             
                                                                  
CURRENT ASSETS                                                     
                                                                  
Cash and cash equivalents                              $222,215   $34,096
Restricted cash                                        5,968        6,819
Accounts receivable, net of allowance for doubtful
accounts of $1,916 and $841 in 2012 and 2011,          36,487       30,993
respectively
Operating supplies                                     13,638       4,520
Prepaid expenses                                       5,973        3,212
Other receivables                                      22,532       26,392
Other current assets                                   177          101
Total current assets                                   306,990      106,133
NONCURRENT ASSETS                                                  
                                                                  
Other receivables                                      22,758       15,370
Restricted cash                                        1,464        1,483
Vessels and equipment, net                             647,519      671,445
Dry dock                                               4,238        5,088
Investments in and receivables from affiliates         4,282        6,851
Intangible assets                                      801          976
Goodwill                                               5,015        5,015
Other assets                                           10,214       12,573
Deferred income tax assets                             7,037        5,353
Total noncurrent assets                                703,328      724,154
Total assets                                           $1,010,318 $830,287
                                                                  
LIABILITIES AND EQUITY                                             
                                                                  
CURRENT LIABILITIES                                                
                                                                  
Accounts payable                                       $32,450    $32,824
Customer Advances                                      15,175       19
Payable to related parties                             3,761        1,158
Accrued interest                                       4,858        4,769
Current portion of long-term financial debt            129,031      21,504
Other current liabilities                              13,470       13,614
Total current liabilities                              198,745      73,888
NONCURRENT LIABILITIES                                             
                                                                  
Long-term financial debt                               388,521      491,489
Deferred income tax liabilities                        12,441       12,951
Other liabilities                                      2,026        1,788
Deferred gains                                        2,086        --
Total noncurrent liabilities                           405,074      506,228
Total liabilities                                      603,819      580,116
                                                                  
EQUITY                                                             
Common stock, $0.01 par value:250,000,000 authorized
shares; 140,419,487 and 30,011,628 shares outstanding  1,443        339
in 2012 and 2011, respectively
Additional paid-in capital                             490,850      272,302
Treasury stock:3,923,094 shares at cost               (19,488)     (19,488)
Retained earnings (deficit)                            (70,476)     (6,819)
Accumulated other comprehensive income (loss)          (2,578)      (2,037)
Total Ultrapetrol (Bahamas) Limited stockholders'      399,751      244,297
equity
                                                                  
Non-controlling interest                               6,748        5,874
Total equity                                           406,499      250,171
Total liabilities and equity                           $1,010,318 $830,287

The following table contains our audited statements of cash flows for the
years ended December 31, 2012, 2011 and 2010:

                    (Stated in thousands of U.S. dollars)

                                                                 
                                           For the years ended December 31,
                                           2012        2011        2010
CASH FLOWS FROM OPERATING ACTIVITIES                              
Net loss                                    $(62,764) $(18,235) $(4,920)
Adjustments to reconcile net loss to total
cash flows (used in) provided by operating                        
activities:
Loss from discontinued operations           --         --          515
Depreciation of vessels and equipment       38,914      34,891      29,880
Amortization of dry docking                 4,763       4,078       4,186
Expenditure for dry docking                 (5,978)     (3,478)     (8,204)
(Loss) gains on derivatives, net            --         16          (10,474)
Debt issuance expense amortization          2,217       2,323       1,340
Financial loss on extinguishment of debt    940         --          --
Amortization of intangible assets           175         175         305
(Gain) on sale of vessels                   (3,564)     --          (724)
Net losses from investments in affiliates   1,175       1,073       341
Allowance for doubtful accounts             1,266       598         359
Loss on write-down of vessels               16,000      --          --
Share - based compensation                  530         1,079       1,266
Changes in assets and liabilities:                                
(Increase) decrease in assets:                                    
Accounts receivable                         (6,760)     (6,916)     (8,632)
Other receivables, operating supplies and   (13,599)    (12,302)    (2,827)
prepaid expenses
Other                                       3,109       (2,261)     1,369
Increase (decrease) in liabilities:                               
Accounts payable and customer advances      18,515      10,324      10,661
Other payables                              1,126       3,407       6,403
Net cash (used in) provided by operating    (3,935)     14,772      20,844
activities from continuing operations
Net cash (used in) operating activities     --          (15)        (1,950)
from discontinued operations
Total cash flows provided by operating      (3,935)     14,757      18,894
activities
CASH FLOWS FROM INVESTING ACTIVITIES                              
Purchase of vessels and equipment (10,904
in 2012 for barges built, sold and          (50,920)    (97,863)    (105,247)
leased-back)
Proceeds from disposals of vessels, net
(13,020 in 2012 for barges sold and leased  16,870      --          36,584
back)
Other investing activities, net             1,537       --          12,574
Net cash (used in) investing activities     (32,513)    (97,863)    (56,089)
from continuing operations
Net cash provided by investing activities   --          --          1,950
from discontinued operations
Total cash flows (used in) investing        (32,513)    (97,863)    (54,139)
activities
CASH FLOWS FROM FINANCING ACTIVITIES                              
Scheduled repayments of long-term financial (20,930)    (13,286)    (11,292)
debt
Early repayment of long-term financial debt (23,911)    --          --
Short-term credit facility borrowings       8,275       10,500      --
Short-term credit facility repayments       --          (25,500)    --
Proceeds from issuance of common stock, net 219,122     ----        ----
of expenses
Proceeds from issuance of 7.25% Senior      ----        ----        76,095
Convertible Notes, net of issuance costs
Proceeds from long-term financial debt      41,125      41,900      25,000
Other financial activities, net             886         (1,982)     (2,189)
Net cash provided by financing activities  224,567     11,632      87,614
Net increase (decrease) increase in cash    188,119     (71,474)    52,369
and cash equivalents
Cash and cash equivalents at the beginning
of year (including $289, $304 and $304      34,096      105,570     53,201
related to discontinued operations)
Cash and cash equivalents at the end of
year (including $289, $289 and $304 related 222,215     34,096      105,570
to discontinued operations)

The following table reconciles our EBITDA as defined in the Notes due 2014 and
our Adjusted Consolidated EBITDA to our cash flow for the years ended December
31, 2012, and 2011:

                                                                   
                                                         Year ended
                                                         December 31,
($000's)                                                  2012       2011
Total cash flows provided by operating activities         (3,935)    14,757
Total cash flows (used in) investing activities           (32,513)   (97,863)
Total cash flows (used in) from financing activities      224,567    11,632
                                                                   
Net cash provided by operating activities from continuing $(3,935) $14,772
operations
Net cash (used in) provided by operating activities from  --       $(15)
discontinued operations
Total cash flows from operating activities                $(3,935) $14,757
                                                                   
Plus                                                                
                                                                   
Adjustments from continuing operations                             
                                                                   
Increase / Decrease in operating assets and liabilities   (2,391)    7,748
Expenditure for dry docking                               5,978      3,478
Income Taxes                                              (2,969)    (1,737)
Financial Expenses                                        35,793     35,426
Gain on disposal of assets                                3,564      --
Allowance for doubtful accounts                           (1,266)    (598)
Net loss attributable to non-controlling interest         (893)      (570)
Gains on derivatives, net                                 --         (16)
Yard EBITDA from Touax sale                               2,086      --
Other adjustments                                         (3,922)    (4,475)
                                                                   
Adjustments from discontinued operations                            
                                                                   
Increase / Decrease in operating assets and liabilities   --         15
Financial Expenses                                        --         --
                                                                   
EBITDA as defined in the Notes due 2014 from continuing   $32,045  $54,028
operations
EBITDA as defined in the Notes due 2014 from discontinued --       --
operations
Consolidated EBITDA as defined in the Notes due 2014      $32,045  $54,028
                                                                   
Adjusted Consolidated EBITDA                              $32,045  $54,028

The following table reconciles our adjusted net loss and adjusted EPS to net
loss and EPS for the years ended December 31, 2012 and 2011, and for the three
months ended December 31, 2012 and 2011:

                                                                  
                   Year ended  Year ended
($000's)           December    December    %       4Q 12      4Q 11     %
                   31,         31, 2011    Change                       Change
                   2012
                                                                  
Revenues           $313,169    $304,482    3%      $86,340    $96,151   -10%
                                                                  
Adjusted EBITDA    $32,045     $54,028     -41%    $6,162     $16,140   -61%
                                                                  
Net (loss) as      ($63,657)   ($18,805)   239%    ($31,552)  ($6,454)  389%
reported
EPS as reported    ($1.80)     ($0.64)     181%    ($0.60)    ($0.22)   173%
(In $ per share)
                                                                  
Adjustments to
Net Loss as                                                        
reported
                                                                  
Yard EBITDA from   2,086       --               1,259      --      
Touax barge sale
Income tax on
exchange variance  (1,385)     (3,615)     -62%    (77)       (503)     -85%
(loss) ^(1)
Non-cash loss on
write-down of      16,000      --               16,000     --      
vessels
Extinguishment of  940         --               940        --      
debt
                                                                  
Adjusted net       ($46,016)   ($22,420)   105%    ($13,430)  ($6,957)  93%
(loss)
Adjusted EPS (In $ ($1.30)     ($0.76)     71%     ($0.26)    ($0.24)   8%
per share)
                                                                  
(1) Provision for income tax on foreign currency exchange gains on U.S. dollar
denominated debt of one of our subsidiaries on the Offshore Supply Business.

The following table reconciles our Adjusted Consolidated EBITDA to our
Operating Profit per business segment for the fourth quarter ended December
31, 2012:

                                                               
                                Fourth quarter ended December 31, 2012
($000's)                         River       Offshore  Ocean       TOTAL
                                             Supply
                                                               
Segment operating (loss) profit  $(7,574)  $5,462  $(20,658) $(22,770)
Depreciation and amortization    5,730       2,889     2,964       11,583
Non-cash loss on write-down of   --          --        16,000      16,000
vessels
Investment in affiliates / Net
income (loss) attributable to    (181)       (258)     (6)         (445)
non-controlling interest in
subsidiaries
Yard EBITDA from Touax barge     1,259       --        --          1,259
sale
Other, net                       (60)        (1)       (127)       (186)
                                                               
Segment Adjusted EBITDA          $(826)    $ 8,094   $ (1,827)   $ 5,441
                                                               
Items not included in Segment                                   
Adjusted EBITDA
Financial expense                                               (49)
Other financial income                                          770
                                                               
Adjusted Consolidated EBITDA                                    $ 6,162
                                                               
The following table reconciles our Adjusted Consolidated EBITDA to our
Operating Profit per business segment for the fourth quarter ended December
31, 2011:

                                                                 
                                      Fourth quarter ended December 31, 2011
($000's)                               River     Offshore Ocean      TOTAL
                                                 Supply
                                                                 
Segment operating (loss) profit        $6,201  $3,495 $(2,371) $7,325
Depreciation and amortization          4,883     2,586    2,508      9,977
Investment in affiliates / Net income
(loss) attributable to non-controlling (357)     (90)     12         (435)
interest in subsidiaries
Net (loss) on derivatives, net         --        (1)      --         (1)
Other, net                             (175)     --       19         (156)
                                                                 
Segment Adjusted EBITDA                $10,552 $5,990 $168     $16,710
                                                                 
Items not included in Segment Adjusted                            
EBITDA
Financial income                                                  24
Foreign currency (losses) gains, net                              (594)
                                                                 
Adjusted Consolidated EBITDA                                      $ 16,140

The following table reconciles our Adjusted Consolidated EBITDA to our
Operating Profit per business segment for the year ended December 31, 2012:

                                                               
                                Year ended December 31, 2012
($000's)                         River       Offshore  Ocean       TOTAL
                                             Supply
                                                               
Segment operating (loss) profit  $(18,963) $17,615 $(23,771) $(25,119)
Depreciation and amortization    21,996      10,938    10,918      43,852
Non-cash loss on write-down of   --          --        16,000      16,000
vessels
Investment in affiliates / Net
income (loss) attributable to    (1,168)     (893)     (7)         (2,068)
non-controlling interest in
subsidiaries
Yard EBITDA from Touax barge     2,086       --        --          2,086
sale
Other, net                       (201)       (7)       (453)       (661)
                                                               
Segment Adjusted EBITDA          $3,750    $ 27,653  $ 2,687     $ 34,090
                                                               
Items not included in Segment                                   
Adjusted EBITDA
Financial income                                                6
Other financial expenses                                        (2,051)
                                                               
Adjusted Consolidated EBITDA                                    $ 32,045

The following table reconciles our Adjusted Consolidated EBITDA to our
Operating Profit per business segment for the year ended December 31, 2011:

                                                                 
                               Year ended December 31,2011
($000's)                        River     Offshore Supply Ocean      TOTAL
                                                                 
Segment operating (loss) profit $13,138 $10,999       $(4,753) $19,384
Depreciation and amortization   20,139    9,436           9,569      39,144
Investment in affiliates / Net
(loss) attributable to          (1,042)   (570)           (31)       (1,643)
non-controlling interest in
subsidiaries
Net (loss) on derivatives, net  --        (16)            --         (16)
Other, net                      (791)     3               167        (621)
                                                                 
Segment Adjusted EBITDA         $ 31,444  $ 19,852       $ 4,952    $ 56,248
                                                                 
Items not included in Segment                                     
Adjusted EBITDA
Financial income                                                  332
Foreign currency (losses)                                         (2,552)
gains, net
                                                                 
Adjusted Consolidated EBITDA                                      $54,028

CONTACT: The IGB Group
        
         Leon Berman / David Burke
         212-477-8438 / 646-673-9701
         lberman@igbir.com / dburke@igbir.com

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