Ultrapetrol Reports Financial Results for Fourth Quarter and Full Year 2013

Ultrapetrol Reports Financial Results for Fourth Quarter and Full Year 2013

NASSAU, Bahamas, March 12, 2014 (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, 2013.

Full Year 2013 highlights:

  *Recorded full year 2013 revenues of $411.2 million;
    
  *Recorded adjusted consolidated EBITDA of $97.1 million in 2013,^1 which
    includes adjusted EBITDA of $38.8 million from our River Business,
    adjusted EBITDA of $40.0 million from our Offshore Supply Business,
    adjusted EBITDA of $2.4 million from our Ocean Business, and adjusted
    EBITDA of $15.8 million from other activities — including foreign currency
    exchange cash gains;
    
  *Recorded total adjusted net income and adjusted net income per share of
    $13.2 million and $0.09 per share, respectively, in 2013, which excludes
    the effect of a $1.2 million gain for deferred taxes on unrealized foreign
    exchange losses on U.S. dollar-denominated debt of our Brazilian
    subsidiary in our Offshore Supply Business, and a $(5.5) million non-cash
    loss from debt extinguishments mainly resulting from the prepayment of our
    $180.0 million Senior Notes and $80.0 million Convertible Senior Notes;
    and includes a $1.5 million gain related to the sale of dry barges which
    were subsequently leased back to the Company (for accounting purposes,
    such gain will be deferred over the term of the lease up to the present
    value of the lease payments).^2 Before adjusting for these effects, the
    recorded total net income and net income per share are $7.4 million and
    $0.05, respectively;
    
  *FY 2013 Adjusted EBITDA for our Offshore Supply Business segment increased
    45% to $40.0 million as compared to $27.7 million in FY 2012.

Fourth Quarter 2013 and subsequent events highlights:

  *During the fourth quarter of 2013, we closed the sale of $25.0 million in
    aggregate principal amount of our 8.875% First Preferred Ship Mortgage
    Notes due 2021 (the "Add-On Notes"), which were offered as an add-on to
    our outstanding $200.0 million aggregate principal amount of 8.875% First
    Preferred Ship Mortgage Notes due 2021. As a result of the offering of the
    Add-On Notes, we have outstanding an aggregate principal amount of $225.0
    million of our 8.875% First Preferred Ship Mortgage Notes due 2021. The
    Add-On Notes were sold at 104.5%, and we received gross proceeds from the
    offering totaling $26.1 million;
    
  *During the fourth quarter of 2013, we acquired three 5,145 dwt newbuilt
    Chinese sister PSVs, named UP Agate, UP Coral and UP Opal ex yard in
    China, all of which have already been delivered for approximately $96.0
    million. All three vessels underwent certain upgrading to conform to our
    operations at the same yard where they were built and are expected to
    commence operations during the second quarter of 2014;
    
  *During the fourth quarter of 2013, we entered into a loan agreement with
    DVB Bank SE and NIBC Bank NV (as co-lenders) to provide up to $38.4
    million of post-delivery financing on the acquisition of the two new built
    Chinese sister PSVs, UP Agate and UP Coral;
    
  *During the fourth quarter of 2013, we cancelled the shipbuilding contract
    for Hull No. V-387 (UP Onyx) on account of the shipyard's delay in
    delivering the vessel. Pursuant to the refund guarantees issued by certain
    banks, the appropriate repayment demands were settled on January 6 and
    January 24, 2014, with proceeds to Ultrapetrol of $17.7 million;
    
  *During the fourth quarter of 2013, we entered into a barge building
    contract whereby we agreed to build and sell from our Punta Alvear yard a
    set of twelve newbuilt barges to a third party, with deliveries ranging
    between January and April 2014. Gross proceeds to Ultrapetrol from this
    sale will be $13.2 million;
    
  *During the fourth quarter of 2013, we entered into a 5-year agreement with
    Vale to time charter four river pushboats with 16 barges each.

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.

Felipe Menéndez, Ultrapetrol's President and Chief Executive Officer, stated,
"Over the course of 2013, we accomplished every objective that we had set for
the year, enabling the Company to further strengthen its balance sheet,
earnings power and future prospects. In terms of our balance sheet strength,
we consolidated our financial position by prepaying our $80.0 million 2017
convertible bond, placed a new $225.0 million note due 2021 and prepaid the
existing $180.0 million notes due 2014. Complementing this success, we
capitalized on attractive growth opportunities including investing close to
$100.0 million in three new, very large PSVs for our offshore supply fleet
which will enter service early in 2014. These new vessels provide not only
extraordinary capacity, with over 1,000 square meters on deck and in excess of
5,000 dwt each, but are also fully diesel electric and have the capability to
operate as subsea support vessels, opening a window to a full array of new
services for our Company. At the same time, in 2013, we took delivery of two
new construction PSVs from India, UP Amber and UP Pearl, which entered service
under four-year contracts with Petrobras. Additionally, four of our existing
PSVs in Brazil renewed their four-year employments at significantly increased
rates."

Mr. Menéndez continued, "In 2013, we achieved our goal of constructing 58
barges for third parties at our yard (the largest third party yearly delivery
so far) and, while we have committed to further third party constructions in
2014, we also have a robust plan to build barges for our own river fleet. Our
River Business in 2013 experienced favorable climatic conditions, which led to
normal crop levels and increased volumes over those transported in 2012. We
are pleased that the average contracts of affreightment expiring in 2013 were
renewed at increased rates and that we successfully entered into new long-term
agreements to time charter part of our fleet to Vale, which will stabilize the
future earnings of our river fleet and, together with our new iron ore
transshipment facility, should contribute significantly to our EBITDA. Our
Ocean Segment produced a contribution to our gross profit of approximately
$11.1 million in 2013, and the time charter rates for existing contracts were
renewed at increased levels."

Mr. Menéndez concluded, "With most of our earlier investments already
producing substantial results and a firm financial structure in place, we are
in a very strong position to capitalize on the growth opportunities that lie
ahead."

Overview of Financial Results

Total revenues for the fourth quarter of 2013 were $99.0 million as compared
with $86.3 million in the same period of 2012.

Adjusted EBITDA for the fourth quarter of 2013 was $15.0 million as compared
with $6.2 million in the same period of 2012. 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 2013 was $(7.4) million, or
$(0.05) per share as compared with net loss of $(13.4) million, or $(0.26) per
share, during the same period of 2012. Fourth quarter 2013 adjusted net loss
excludes the effect of a $0.1 million gain for deferred taxes on unrealized
foreign exchange losses on U.S. dollar-denominated debt of our Brazilian
subsidiary in our Offshore Supply Business and a $0.1 million gain related to
the sale of dry barges which were subsequently leased back to the Company (for
accounting purposes, such gain will be deferred over the term of the lease up
to the present value of the lease payments).^2 Before adjusting for these
effects, the recorded total net loss and net loss per share are $(7.2) million
and $(0.05), respectively.

Cecilia Yad, Ultrapetrol's Chief Financial Officer, said, "Our business
performed strongly during 2013, enabling the Company to deliver solid
financial results to shareholders. We generated adjusted EBITDA for the year
of $97.1 million, which almost tripled the level attained in 2012. During the
fourth quarter of 2013, we successfully closed a debt offering of $25.0
million, which was an add-on to our outstanding $200.0 million Senior Notes
due 2021 and priced at a premium of 4.5%. We also entered into a loan
agreement with DVB and NIBC to provide up to $38.4 million of post-delivery
financing for our UP Agate and UP Coral, two of our three newbuilt Chinese
sister PSVs acquired in the period.

"As a result of our successes throughout 2013, we have entered 2014 with
increased liquidity and the expectation of further business development,
making us feel confident that we are well positioned for the continued and
accelerated execution of our growth strategy in 2014 and beyond."

Business Segment Highlights

River

The River Business volumes in the fourth quarter of 2013 remained practically
unchanged as compared with the same period of 2012.

Fourth quarter 2013 River Business segment adjusted EBITDA was $0.4 million
versus a loss of $(0.8) million in the same period of 2012, representing a
$1.2 million increase. For a reconciliation of segment adjusted EBITDA to
operating profit (loss), please see the tables at the end of this release.

Results for the fourth quarter of 2013 demonstrate the effect of a better
cargo mix as well as the sale of a larger number of barges manufactured in our
shipyard to third parties. According to the latest United States Department of
Agriculture ("USDA") estimates, the soybean crop in Paraguay for 2013 was 8.3
million tons, which is 4.3 million tons, or 105% greater than the USDA's
estimate for the 2012 crop. Argentina, Brazil, Bolivia, Paraguay and Uruguay
are estimated to account for approximately 54% of world soybean production in
2013, as compared to 30% in 1995.

We believe these figures are a sign of the strength of the long-term growth
prospects of the agricultural sector along the Hidrovia, where the seeded area
is expected to continue to grow, fostered by the strong prices of soybean and
other agricultural commodities. This steady long-term growth trend represents
an important demand driver for Ultrapetrol's River Business. In addition, iron
ore production in the three mines connected with the river system has also
increased substantially in the last decade.

As a result of this promising growth trajectory, the Company has decided to
build two 6,000 and two 7,250 BHP new, state-of-the-art, shallow-drafted,
heavy fuel consuming pushboats to add to its fleet, the first of which is
expected to enter service in 2015.

Notwithstanding its newbuild program for pushboats, the Company has continued
to install its new engines that will convert a substantial portion of its line
pushboats from diesel to heavy fuel consumption. The seventh re-engined
pushboat is expected to commence operation within the first half of 2014. This
program has demonstrated its potential to reduce fuel expense and to increase
both tow size and navigation speed, which we believe will enhance our EBITDA
margins in the future.

During the fourth quarter of 2013, our Punta Alvear barge-building facility
continued with the production of barges for third parties and has secured an
order to build an additional set of barges for a non-related third party.
Including this order, as well as the barges built for our own fleet, we expect
to have our yard fully contracted into the second quarter of 2014.

Offshore Supply

In the Offshore Supply Business, we now operate a fleet of eleven PSVs, ten of
which are contracted to Petrobras in Brazil, and one which operates in the
North Sea. Our recently delivered UP Pearlcommenced operations on November
25, 2013, under a four-year charter with Petrobras after finalizing the
vessel's positioning trip and completing the set-up work for that charter. In
addition, we recently acquired three newbuilt 4,500 class PSVs delivered off
the yard in China and scheduled to commence operation early in the second
quarter of 2014. The adjusted EBITDA generated by the Offshore Supply Business
segment during the fourth quarter of 2013 was $11.1 million, 37% higher than
the $8.1 million adjusted EBITDA generated in the same period of 2012. For a
reconciliation of segment adjusted EBITDA to operating profit (loss), please
see the tables at the end of this release.

Total revenues from our Offshore Supply Business for the fourth quarter of
2013 increased by $3.0 million compared with the same period of 2012. This 14%
increase was primarily attributable to the operation of our UP Amber and UP
Pearl, which commenced their charters with Petrobras on August 1, 2013, and
November 25, 2013, respectively, to higher operating days of our UP Jade, and
on account of the charters of our UP Agua-Marinha, UP Topazio and UP Diamante,
which were renewed with Petrobras in the second quarter of 2013 for four years
at $35,380 per day as compared to their expiring charters at $28,000 per day.
Also, during the second quarter of 2013, the charter of UP Esmeralda was
renewed for four years at $31,950 per day as compared to its expiring charter
of $26,200 per day.

We expect that the full effect of these new vessels will positively impact our
results in the forthcoming quarters as well.

During the fourth quarter of 2013, we cancelled the shipbuilding contract for
Hull No. V-387 (UP Onyx) on account of the shipyard's delay in delivering the
vessel. Pursuant to the refund guarantees issued by certain banks, the
appropriate repayment demands have been settled on January 6 and January 24,
2014, with proceeds to Ultrapetrol of $17.7 million.

The Company believes that the Brazilian market should grow in-line with
Petrobras' capital expenditure plans. Ultrapetrol's fleet in the Offshore
Supply Business has the advantage of being very modern and technologically
capable of supporting deep sea oil drilling in both the Brazilian and North
Sea markets.

Ocean

The Ocean Business segment generated adjusted EBITDA of $1.4 million in the
fourth quarter of 2013 as compared to negative adjusted EBITDA of $(1.8)
million in the same period of 2012, a $3.2 million increase. 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 increased from $15.6 million in the fourth
quarter of 2012 to $17.9 million in the same period of 2013, mainly
attributable to a combined increase in revenues from our Asturiano and
Argentino and to an increase in revenues from our Product Tanker Amadeo, which
was related to the vessel's offhire days during the fourth quarter of 2012.

The Company operated a total of four vessels in its Product Tanker fleet in
the fourth quarter of 2013 (Miranda I, Amadeo, Alejandrina, and Austral),
which continue to be employed on charters with oil majors in the same
flag-protected South American coastal trade in which they have operated in the
past.

Use of Non-GAAP Measures

Ultrapetrol believes that the disclosed non-Generally Accepted Accounting
Principles, or non-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
Thursday, March 13, 2014, 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 1-800-857-5161 (toll-free
U.S.) or +1-630-395-0045 (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 1-800-234-7802
(toll-free U.S.) or +1-402-220-9690 (outside of the U.S.); passcode: 3569. 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 .

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, 2013, 2012, 2011, 2010 and 2009 and has been derived from
the Company's Financial Statements.

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

                      Year Ended December 31,
                     2013      2012       2011       2010      2009
                    (Dollars in thousands)
Statement of                                                  
Operations Data:
Revenues ^(1)        $411,217 $313,169  $304,482  $230,445 $220,529
Operating and
manufacturing        (297,478)  (254,427)   (224,607)   (150,922)  (140,607)
expenses ^(2)
Depreciation and     (42,535)   (43,852)    (39,144)    (34,371)   (41,752)
amortization
Loss on write- down  --         (16,000)    --          --         (25,000)
of vessels
Administrative and   (41,730)   (32,385)    (29,604)    (27,051)   (25,065)
commercial expenses
Other operating      5,692      8,376       8,257       617        2,844
income, net
Operating profit     35,166     (25,119)    19,384      18,718     (9,051)
(loss)
                                                              
Financial expense    (33,551)   (35,793)    (35,426)    (25,925)   (24,248)
Foreign currency
exchange gains       18,849     (2,051)     (2,552)     (492)      1,011
(losses), net
Financial loss on
extinguishment of    (5,518)    (940)       --          --         --
debt
Financial income     170        6           332         399        340
(Loss) gain on       (142)      --          (16)        10,474     241
derivatives, net
Investments in       (520)      (1,175)     (1,073)     (341)      (28)
affiliates
Other, net           64         (661)       (621)       (875)      (707)
                                                              
Income (loss) before 14,518     (65,733)    (19,972)    1,958      (32,442)
income taxes
Income taxes         (6,597)    2,969       1,737       (6,363)    (5,355)
(expense) benefit
                                                              
Income (loss) from
continuing           $7,921   $(62,764) $(18,235) $(4,405) $(37,797)
operations
(Loss) from
discontinued         $--      $--       $--       $(515)   $(2,131)
operations ^(3)
Net Income (Loss)    $7,921   $(62,764) $(18,235) $(4,920) $(39,928)
                                                              
Net Income (Loss)
attributable to      553        893         570         451        (90)
noncontrolling
interest
Net Income (Loss)
attributable to      7,368      (63,657)    (18,805)    (5,371)    (39,838)
Ultrapetrol
(Bahamas) Limited

                 
                 Year Ended December 31,
                 2013         2012        2011       2010       2009
                 (Dollars in thousands)
                                                               
Amounts
attributable to
Ultrapetrol                                                     
(Bahamas)
Limited:
(Loss) Income
from continuing   7,368        (63,657)     (18,805)    (4,856)     (37,707)
operations
(Loss) from
discontinued      --           --           --          (515)       (2,131)
operations
Net (loss) income
attributable to   7,368        (63,657)     (18,805)    (5,371)     (39,838)
Ultrapetrol
(Bahamas) Limited
Basic and diluted (loss)
income per share of                                              
Ultrapetrol (Bahamas) Limited:
From continuing   $0.05      $(1.80)    $(0.64)   $(0.16)   $(1.28)
operations
From discontinued $--        $--        $--       $(0.02)   $(0.07)
operations
                 $0.05      $(1.80)    $(0.64)   $(0.18)   $(1.35)
Basic weighted
average number of 140,090,112  35,382,913   29,547,365  29,525,025  29,426,429
shares
Diluted weighted
average number of 140,326,764  35,382,913   29,547,365  29,525,025  29,426,429
shares
                                                               
Balance Sheet
Data (end of                                                    
period):
Cash and cash     $ 72,625     $ 222,215    $ 34,096    $ 105,570   $ 53,201
equivalents
Restricted cash - 12,132       5,968        6,819       1,661       1,658
current
Working capital   104,316      108,245      32,245      98,318      68,352
^(4)
Vessels and       715,431      647,519      671,445     612,696     571,478
equipment, net
Total assets      980,011      1,010,318    830,287     823,797     732,934
Total debt ^(5)   500,049      522,410      517,762     501,657     407,539
Common Stock      1,443        1,443        339         338         338
Number of shares  140,419,487  140,419,487  30,011,628  29,943,653  29,943,653
outstanding
Ultrapetrol
(Bahamas) Limited 405,561      399,751      244,297     263,463     283,703
stockholders'
equity
Noncontrolling    --           6,748        5,874       5,331       4,880
interest
Total equity      405,561      406,499      250,171     268,794     288,583
                                                               
Statement of Cash                                               
Flow Data:
Total cash flows
provided by (used 19,847       (3,935)      14,757      18,894      38,716
in) operating
activities
Total cash flows
(used in)         (120,726)    (32,513)     (97,863)    (54,139)    (83,598)
investing
activities
Total cash flows
(used in)
provided by       (48,711)     224,567      11,632      87,614      (7,776)
financing
activities
Adjusted
Consolidated      $97,067    $32,045    $54,028   $61,293   $57,129
EBITDA ^(6)
                                                               
(1) Includes total revenues from transportation and services of $345.6 million
and $65.6 million from manufacturing in 2013; revenues from transportation and
services of $282.9 million and $30.3 million from manufacturing in 2012 and
revenues from transportation and services of $285.4 million and $19.1 million
from manufacturing in 2011.
                                                               
(2) Operating and manufacturing expenses are voyage expenses, running costs
and manufacturing 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.
                                                               
(3) Net of income                                               
tax effect.
                                                               
(4) Current
assets less                                                     
current
liabilities.
                                                               
(5) Includes                                                    
accrued interest.
                                                               
(6) The following table reconciles our Adjusted Consolidated EBITDA 
to our cash flows from operating activities:

                                Year Ended December 31,
                                                                 
                                2013     2012      2011     2010     2009
                                (Dollars in thousands)
Net cash provided (used in) by
operating activities from        $ 19,847 $ (3,935) $ 14,772 $ 20,844 $ 38,679
continuing operations
Net cash (used in) provided by
operating activities from        --       --        (15)     (1,950)  37
discontinued operations
Total cash flows from operating  19,847   (3,935)   14,757   18,894   38,716
activities
Plus                                                              
Adjustments from continuing                                       
operations
Increase / Decrease in operating 32,466   (2,391)   7,748    (6,974)  (14,052)
assets and liabilities
Expenditure for drydocking       10,150   5,978     3,478    8,204    5,242
Income taxes expense (benefit)   6,597    (2,969)   (1,737)  6,363    5,355
Financial expenses               33,551   35,793    35,426   25,925   24,248
(Losses) Gains on derivatives,   (216)    --        (16)     10,474   241
net
Gain on disposal of assets       --       3,564     --       724      1,415
Contribution from sale and lease 1,498    2,086     --       --       --
back
Allowance for doubtful accounts  (2,467)  (1,266)   (598)    (359)    21
Net loss (income) attributable   (553)    (893)     (570)    (451)    90
to non-controlling interest
Other adjustments                (3,806)  (3,922)   (4,475)  (2,947)  (2,591)
                                                                 
Adjustments from discontinued    --      --       15      1,440   (1,556)
operations
                                                                 
Adjusted Consolidated EBITDA     $ 97,067 $ 32,045  $ 54,028 $ 61,293 $ 57,129

The following table shows our audited consolidated balance sheet at December
31, 2013 and 2012:

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

                                                        At December 31,
                                                        2013      2012
ASSETS                                                            
                                                                 
CURRENT ASSETS                                                    
                                                                 
Cash and cash equivalents                                $ 72,625  $ 222,215
Restricted cash                                          12,132    5,968
Accounts receivable, net of allowance for doubtful
accounts of $2,905 and $1,916 in 2013 and 2012,          47,836    36,487
respectively
Operating supplies and inventories                       17,168    13,638
Prepaid expenses                                         4,111     5,973
Other receivables                                        41,832    22,532
Other current assets                                     --       177
Total current assets                                     195,704   306,990
NONCURRENT ASSETS                                                 
                                                                 
Other receivables                                        28,640    22,758
Restricted cash                                          1,463     1,464
Vessels and equipment, net                               715,431   647,519
Dry dock                                                 10,979    4,238
Investments in and receivables from affiliates           4,436     4,282
Intangible assets                                        626       801
Goodwill                                                 5,015     5,015
Other assets                                             14,954    10,214
Deferred income tax assets                               2,763     7,037
Total noncurrent assets                                  784,307   703,328
Total assets                                             $ 980,011 $ 1,010,318
                                                                 
LIABILITIES AND EQUITY                                            
                                                                 
CURRENT LIABILITIES                                               
                                                                 
Accounts payable                                         $ 28,923  $ 32,450
Customer advances                                        12,710    15,175
Payable to related parties                               1,351     3,761
Accrued interest                                         1,652     4,858
Current portion of long-term financial debt              32,253    49,031
2017 Senior Convertible Notes                            --       80,000
Other current liabilities                                14,499    13,470
Total current liabilities                                91,388    198,745
NONCURRENT LIABILITIES                                            
                                                                 
Long-term financial debt                                 466,144   388,521
Deferred income tax liabilities                          12,248    12,441
Other liabilities                                        1,086     2,026
Deferred gains                                           3,584     2,086
Total noncurrent liabilities                            483,062   405,074
Total liabilities                                       574,450   603,819
                                                                 
EQUITY                                                            
Common stock, $0.01 par value:250,000,000 authorized    1,443     1,443
shares; 140,419,487 shares outstanding
Additional paid-in capital                               488,522   490,850
Treasury stock:3,923,094 shares at cost                 (19,488)  (19,488)
Accumulated deficit                                      (63,108)  (70,476)
Accumulated other comprehensive loss                     (1,808)   (2,578)
Total Ultrapetrol (Bahamas) Limited stockholders'        405,561   399,751
equity
                                                                 
Noncontrolling interest                                 --       6,748
Total equity                                            405,561   406,499
Total liabilities and equity                             $ 980,011 $ 1,010,318

The following table contains our audited historical statements of income data
for the years ended December 31, 2013 and 2012 derived from our audited
condensed consolidated statements of income expressed in thousands of U.S.
dollars:

                                              Year Ended December 31, 
                                                                      Percent
                                               2013        2012        Change
Revenues                                                             
Attributable to River Business                 $246,798  $163,279  51%
Attributable to Offshore Supply Business       93,154      76,661      22%
Attributable to Ocean Business                 71,265      73,229      -3%
Total revenues                                 411,217     313,169     31%
                                                                    
Voyage and manufacturing expenses                                    
Attributable to River Business                 (133,957)   (94,741)    41%
Attributable to Offshore Supply Business       (4,984)     (5,242)     -5%
Attributable to Ocean Business                 (22,381)    (26,385)    -15%
Total voyage expenses                          (161,322)   (126,368)   28%
                                                                    
Running costs                                                        
Attributable to River Business                 (57,851)    (53,912)    7%
Attributable to Offshore Supply Business       (40,513)    (38,163)    6%
Attributable to Ocean Business                 (37,792)    (35,984)    5%
Total running costs                            (136,156)   (128,059)   6%
                                                                    
Amortization of drydocking and intangible      (3,582)     (4,938)     -27%
assets
Depreciation of vessels and equipment          (38,953)    (38,914)    --
Loss on write-down of vessels                  --          (16,000)    --
Administrative and commercial expenses         (41,730)    (32,385)    29%
Other operating income, net                    5,692       8,376       -32%
Operating profit (loss)                        35,166      (25,119)    --
                                                                    
Financial expense                              (33,551)    (35,793)    -6%
Financial loss on extinguishment of debt       (5,518)     (940)       487%
Foreign currency exchange gains (losses), net  18,849      (2,051)     
Investment in affiliates                       (520)       (1,175)     -56%
Other, net                                     92          (655)       
Total other income (expenses)                  (20,648)    (40,614)    -49%
Income (loss) before income tax                $14,518   $(65,733) 
Income tax (expenses) benefit                  (6,597)     2,969       
Net income attributable to noncontrolling      553         893         -38%
interest
Net income (loss) attributable to Ultrapetrol  7,368       (63,657)    
(Bahamas) Limited

The following table contains our audited statements of cash flows for the
years ended December 31, 2013, 2012 and 2011:

                    (Stated in thousands of U.S. dollars)

                                             For the years ended December 31,
                                             2013       2012       2011
CASH FLOWS FROM OPERATING ACTIVITIES                              
Net income (loss)                             $ 7,921    $ (62,764) $ (18,235)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating                          
activities:
Depreciation of vessels and equipment         38,951     38,914     34,891
Amortization of dry docking                   3,409      4,763      4,078
Expenditure for dry docking                   (10,150)   (5,978)    (3,478)
Loss on derivatives, net                      216        --        16
Debt issuance expense amortization            2,711      2,217      2,323
Financial loss on extinguishment of debt      5,518      940        --
Amortization of intangible assets            175        175        175
(Gain) on sale of vessels                     --        (3,564)    --
Net losses from investments in affiliates     520        1,175      1,073
Allowance for doubtful accounts               2,467      1,266      598
Loss on write-down of vessels                 --        16,000     --
Share - based compensation                    575        530        1,079
Changes in assets and liabilities:                                
(Increase) decrease in assets:                                    
Accounts receivable                           (13,906)   (6,760)    (6,916)
Other receivables, operating supplies and     (7,421)    (13,599)   (12,302)
inventories and prepaid expenses
Other                                         188        3,109      (2,276)
Increase (decrease) in liabilities:                               
Accounts payable and customer advances        (5,964)    18,515     10,324
Other payables                                (5,363)    1,126      3,407
Net cash provided by (used in) operating      19,847     (3,935)    14,757
activities
CASH FLOWS FROM INVESTING ACTIVITIES                              
Purchase of vessels and equipment ($7,521 in
2013 and $10,904 in 2012 for barges built,    (130,136)  (50,920)   (97,863)
sold and leased-back)
Proceeds from disposals of vessels, net
($9,410 in 2013 and $13,020 in 2012 for       9,410      16,870     --
barges sold and leased-back)
Other investing activities, net               --        1,537      --
Net cash (used in) investing activities      (120,726)  (32,513)   (97,863)
CASH FLOWS FROM FINANCING ACTIVITIES                              
Scheduled repayments of long-term financial   (31,075)   (20,930)   (13,286)
debt
Early repayment of long-term financial debt   (39,825)   (23,911)   --
Prepayment of 2017 Senior Convertible Notes   (80,000)   --        --
Prepayment of 2014 Senior Notes               (180,000)  --        --
Short-term credit facility borrowings         --        8,275      10,500
Short-term credit facility repayments         (8,275)    --        (25,500)
Proceeds from issuance of 2021 Senior Notes,  216,654    --        --
net of issuance costs
Proceeds from issuance of common stock, net   --        219,122    --
of expenses
Proceeds from long-term financial debt        93,950     41,125     41,900
Purchase of subsidiary shares from            (10,250)   --        --
noncontrolling interest
(Increase) decrease in restricted cash       (6,163)    870        --
Other financing activities, net               (3,727)    16         (1,982)
Net cash (used in) provided by financing      (48,711)   224,567    11,632
activities
Net (decrease) increase in cash and cash      (149,590)  188,119    (71,474)
equivalents
Cash and cash equivalents at the beginning of 222,215    34,096     105,570
year
Cash and cash equivalents at the end of year  $ 72,625   $ 222,215  $ 34,096

The following table reconciles our Adjusted Consolidated EBITDA to our cash
flow for the years ended December 31, 2013, and 2012:

                                                       Year ended
                                                        December 31,
($000's)                                                2013      2012
Total cash flows provided by operating activities       19,847    (3,935)
Total cash flows (used in) investing activities         (120,726) (32,513)
Total cash flows (used in) from financing activities    (48,711)  224,567
                                                                
Total cash flows from operating activities              $19,847 $(3,935)
                                                                
Plus                                                             
                                                                
Adjustments                                                      
                                                                
Increase / Decrease in operating assets and liabilities 32,466    (2,391)
Expenditure for dry docking                             10,150    5,978
Income Taxes                                            6,597     (2,969)
Financial Expenses                                      33,551    35,793
Gain on disposal of assets                              --        3,564
Allowance for doubtful accounts                         (2,467)   (1,266)
Net loss attributable to noncontrolling interest        (553)     (893)
Loss on derivatives, net                                (216)     --
Yard EBITDA from Touax sale                             1,498     2,086
Other adjustments                                       (3,806)   (3,922)
                                                                
Adjusted Consolidated EBITDA                            $97,067 $32,045

The following table reconciles our adjusted net income and adjusted EPS to net
loss and EPS for the years ended December 31, 2013 and 2012:

                   Year ended  Year ended   %                           %
($000's)           December    December 31, Change  4Q 13     4Q 12     Change
                   31, 2013    2012
                                                                  
Revenues           $411,217    $313,169     31%     $98,955   $86,340   15%
                                                                  
Adjusted EBITDA    $97,067     $32,045      203%    $14,965   $6,162    143%
                                                                  
Net income (loss)  $7,368      ($63,657)    --      ($7,263)  ($31,552) -77%
as reported
EPS as reported    $0.05       ($1.80)      --      ($0.05)   ($0.60)   -92%
(In $ per share)
                                                                  
Adjustments to Net Income/Loss                                      
as reported
                                                                  
Yard EBITDA from   1,498       2,086        -28%    (101)     1,259     
Touax barge sale
Income tax on
exchange variance  (1,201)     (1,385)      -13%    (77)      (77)      --
(loss) ^(1)
Non-cash loss on
write-down of      --        16,000              --       16,000    
vessels
Extinguishment of  5,518       940          487%    --       940       
debt
                                                                  
Adjusted net       $13,183     ($46,016)           ($7,441)  ($13,430) -45%
income (loss)
Adjusted EPS (In $ $0.09       ($1.30)             ($0.05)   ($0.26)   -81%
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, 2013:

                                      Fourth quarter ended December 31, 2013
($000's)                                          Offshore
                                       River      Supply    Ocean    TOTAL
                                                                 
Segment operating (loss) profit        $(5,501) $7,756  $(321) $1,934
Depreciation and amortization          6,297      3,286     1,776    11,359
Investment in affiliates / Net income
(loss) attributable to non-controlling (302)      --        (9)      (311)
interest in subsidiaries
Net (loss) on derivatives, net         --         76        --       76
Yard EBITDA from Touax sale            (101)      --        --       (101)
Other, net                             --         --        1        1
                                                                 
Segment Adjusted EBITDA                $393     $11,118 $1,447 $12,958
                                                                 
Items not included in Segment Adjusted                            
EBITDA
Financial income                                                  81
Foreign currency exchange gains, net                              1,926
                                                                 
Adjusted Consolidated EBITDA                                      $14,965

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)                                            Offshore
                                        River       Supply   Ocean    TOTAL
                                                                  
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 vessels  --          --       16,000   16,000
Investment in affiliates / Net income
(loss) attributable to non-controlling  (181)       (258)    (6)      (445)
interest in subsidiaries
Yard EBITDA from Touax barge sale       1,259       --       --       1,259
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)
Foreign currency exchange gains, net                               770
                                                                  
Adjusted Consolidated EBITDA                                       6,162

The following table reconciles our Adjusted Consolidated EBITDA to our
Operating Profit per business segment for the year ended December 31, 2013:

                                     Year ended December 31,2013
($000's)                                        Offshore
                                      River     Supply    Ocean      TOTAL
                                                                 
Segment operating profit (loss)       $10,616 $29,055 $(4,505) $35,166
Depreciation and amortization         23,977    11,676    6,882      42,535
Investment in affiliates / Net (loss)
attributable to non-controlling       (490)     (553)     (30)       (1,073)
interest in subsidiaries
Net (loss) on derivatives, net        --        (142)     --         (142)
Yard EBITDA from Touax sale           1,498     --        --         1,498
Reduction in opex                     3,205     --        --         3,205
Other, net                            --        --        64         64
                                                                 
Segment Adjusted EBITDA               $38,806 $40,036 $2,411   $81,253
                                                                 
Items not included in Segment                                     
Adjusted EBITDA
Financial income                                                  170
Foreign currency exchange gains, net                              15,644
                                                                 
Adjusted Consolidated EBITDA                                      $97,067

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)                                            Offshore
                                         River      Supply   Ocean    TOTAL
                                                                  
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 vessels   --         --       16,000   16,000
Investment in affiliates / Net income
(loss) attributable to non-controlling   (1,168)    (893)    (7)      (2,068)
interest in subsidiaries
Yard EBITDA from Touax barge sale        2,086      --       --       2,086
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
Foreign currency exchange (losses), net                            (2,051)
                                                                  
Adjusted Consolidated EBITDA                                       32,045

CONTACT: The IGB Group
        
         Leon Berman
         212-477-8438
         lberman@igbir.com

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