Ultrapetrol looks at asset sales, new capital for debt restructuring

By Devika Patel

Knoxville, Tenn., Aug. 26 – Ultrapetrol (Bahamas) Ltd. is considering the sale of assets or businesses and looking at the possibility of raising more capital as part of its continuing debt restructuring.

Negotiations with its “secured lenders are ongoing while we explore alternative options including sale of assets or business segments, restructuring of existing indebtedness and adding additional capital,” according to chief financial officer Cecilia Yad.

“Throughout this process, we have maintained a healthy liquidity position and are operating our businesses on a normal basis, making full and timely payments to all vendors, employees, suppliers and trading counterparties and maintaining our high safety and customer service standards,” Yad said in a press release announcing the company’s second-quarter earnings on Thursday.

“We have continued to work with our secured lenders towards the shared goal of a consensual financial restructuring that benefits all stakeholders,” chief executive officer Damián Scokin added in the release.

“Amid the challenging market environment that persisted through the second quarter of 2016, we have maintained a keen focus on operating our businesses as efficiently and profitably as possible.

“By executing on our strategic initiatives to streamline our businesses, strictly control costs, and improve our operational performance, we have continued to make progress in simultaneously enhancing our efficiency and strengthening our underlying earnings potential in an eventual market recovery.”

The company increased its cash flow from operating activities for the six months ending June 30 to $16.8 million from $8.93 million in the comparable period of 2015 and its cash flows from financing activities increased to $15.38 million in 2016 from $2.6 million in 2015, according to the company’s second-quarter earnings results.

Ultrapetrol ended the first six months of 2016 on June 30 with cash and cash equivalents of $45.6 million, a $402,000 increase from the same time last year.

Financial highlights

Ultrapetrol’s total revenues this quarter were down to $73.68 million from the same quarter in 2015’s revenues at $96.09 million.

Operating profit decreased to $675,000 from $3.56 million in 2015’s second quarter.

Net cash provided by operating activities for the six-month period ended June 30 was $16.8 million, and net cash used in investing activities for the same period was $1.01 million. The company used net cash of $15.38 million in financing activities.

Ultrapetrol is a Nassau, Bahamas-based shipping company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.