Ultrapetrol (Bahamas) Limited (NASDAQ:ULTR)

Ultrapetrol (Bahamas) Limited is a marine transportation company engaged in the global carriage of dry bulk and liquid cargos, supplies, equipment and passengers. It operates in four business segments. Under the River Business, it owns and operates river barges and pushboats. In Offshore Supply Business, it owns and operates vessels that provide logistical and transportation services. Its Ocean Business owns and operates six oceangoing vessels. While the Passenger Business fleet consists of two vessels with a total carrying capacity of approximately 1,600 passengers, and operates primarily in the European cruise market.

With an increase in the marine transportation every year, the future looks positive for the company. Market for offshore supply vessels is increasing both on a worldwide basis and within Brazil, enhancing company’s opportunity in the future. Also with a diverse customer base including large and well-known petroleum, agricultural, mining and tour operating companies, the fundamentals of the company look very strong.

Company’s revenues are showing strong trends since past two years. It was more evident by nine month ended 2006 financials where revenues rose 26% to $127.7M. Revenues reflect increased sales from river business, higher passenger business sales and improved revenues from Offshore Supply Business. On the other hand net income fell 41% to $13.3M due to an increase in voyage expenses, higher running costs and increased amortization of dry-docking.

Future looks bright for the company; with delivery schedule of two more platform supply vessels for the Offshore segment in 2007 and 2008, respectively. The company recently announced the acquisition of two small product tankers, promising rise in its ocean segment income. All the above factors show a positive uptrend for the Ultrapetrol’s stock price.