The US-listedshipowner posted a net loss of $4.7m in the first quarter, a 19% improvement onthe $5.8m loss recorded a year ago.

Totalrevenues were up 11% to $86.3m helped by a 27% increase in revenue at itsoffshore division which came in at $27.4m.

Revenues at its river, or tugboat, business wasup 5% to $41.3m, while its deepsea shipping arm saw revenue increase 4% to$17..6m.

FelipeMenendez, Ultrapetrol’s chief executive Officer, said: “2014 started on astrong note with our three new offshore vessels on their way to the Atlantic,two of them having participated successfully in tenders for four and six years employment,respectively, with Petrobras starting in 2015.

“Inorder to provide the subsea services we have offered, UP Coral will be converted into an RSV capable of supportingsubsea operations, a segment of the industry that provides substantially highermargins than those of regular PSVs.

“We have also been successful in a tender toemploy our UP Safira for afurther four years with Petrobras at a rate of $30,000 per day with which allour vessels currently operating in Brazil are profitably employed on long termcontracts.

“Our ocean segmenthas also performed strongly in the first quarter of 2014 with over $4m inadjusted ebitda as a result of an improvement in the operation of our productcarriers as well as strong execution in our feeder container service.”

Inits river business Menendez said operations have seen a busy start to 2014,with 100 of its barges on a fixed time charter with Vale and a substantialsoybean crop to carry.

“Furthermore,we have recently begun supplementing this business by providing transshipmentservices with our new transfer station, Parana Iron, which is also on along-term contract with Vale.

“Weexpect this new station to contribute substantial additional ebitda byproviding logistical services associated with river transportation.”

Lookingahead, Menendez said Ultrapetrol is currently working with a European designfirm to develop a series of shallow drafted, ultra fuel-efficient pushboats.

“We expect them to significantly improve our riverbusiness operations and allow us to achieve improved margins as we continue toserve our share of the fast-growing market for river transportation.”