Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q1 2021 Earnings Presentation
20 slides from Knot Offshore Partners Lp's earnings presentation, May 13, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results May 13, 2021 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) that reflect management’s current view and involve known and unknown risks and are based upon assumptions and estimates that are inh
Slide 3: First Quarter 2021 and Subsequent Highlights - 1
First Quarter 2021 and Subsequent Highlights - 1 Total revenues of $71.5 million, operating income of $27.6 million and net income of $28.1 million. Quarterly Adjusted EBITDA of $51.3 million. Distributable Cash Flow of $21.7 million, with a coverage ratio of 1.20. At March 31, $115 million
Slide 4: First Quarter 2021 and Subsequent Highlights - 2
First Quarter 2021 and Subsequent Highlights - 2 Tove Knutsen In March, the Tove Knutsen developed a technical fault due to a leakage from its controllable pitch propeller. The vessel was repaired and returned to operation on April 15, 2021. The Partnership currently estimates that the aggregate c
Slide 5: KNOP Attributes
KNOP Attributes We are a market leader in the operation of shuttle tankers with more than 30 years continuous experience and investment in this business. KNOP is classified as a corporation for U.S. federal income tax purposes. A U.S. holder of KNOP common units will receive a Form 1099 to repor
Slide 6: Income Statement
Income Statement Unaudited, USD thousands 1Q 2021 4Q 2020 3Q 2020 2Q 2020 1Q 2020 FY 2020 Time charter and bareboat revenues (1) 65,598(1) 69,864 71,241 70,250 67,226 278,581 Loss of hire insurance recoveries 5,882 — — — — — Other income(2) 1 (5) 39 9 598(2) 641 Total revenues 71,481 69,859 71,280 7
Slide 7: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 1Q 2021 4Q 2020 3Q 2020 2Q 2020 1Q 2020 FY 2020 Net income (loss) 28,141 24,605 25,076 21,683 (6,139) 65,225 Interest income — (4) — (3) (118) (125) Interest expense 7,372 6,113 6,558 8,512 10,462 31,645 Depreciation 23,684 22,466 22,453 22,451 22,373 89,743
Slide 8: Distributable Cash Flow
Distributable Cash Flow Unaudited, USD thousands 1Q 2021 4Q 2020 3Q 2020 2Q 2020 1Q 2020 FY 2020 Net income (loss) 28,141 24,605 25,076 21,683 (6,139) 65,225 Add: Depreciation 23,684 22,466 22,453 22,451 22,373 89,743 Other non-cash items; amortization of deferred debt 1,102 617 624 626 636 2,503 is
Slide 9: Balance Sheet
Balance Sheet At Mar 31, At Dec 31, At Mar 31, At Dec 31, Unaudited, USD thousands 2021 2020 2021 2020 Current assets: Current liabilities: Cash and cash equivalents 60,019 52,583 Current portion of long-term debt 310,468 184,188 Inventories 2,612 2,652 Derivative liabilities 9,486 10,695 Amounts du
Slide 10: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies At March 31, 2021: Remaining forward contracted revenue of $670 million (exc. options) and average remaining charter of 2.5 years Charterers also have the option to extend these charters by a further 2.8 years on average Charterer's Age C
Slide 11: Dropdown Inventory at Sponsor – Potential Acquisitions
Dropdown Inventory at Sponsor – 6 Potential Acquisitions(1) At March 31, 2021: Average contracted charter length of 5.3 years Charterers also have the option to extend these charters by a further 7.3 years on average Fixed contract Expected period Vessel 2020 2021 2022 2023 2024 2025 Charterer (year
Slide 12: Fixed-rate Contracts Provide Stable Cashflow Despite Oil Price Fluctuation
Fixed-rate Contracts Provide Stable Cashflow Despite Oil Price Fluctuation 60 90 Adj. EBITDA 50 Brent 75 Adjusted EBITDA (USD million) Brent Crude Spot (USD) 40 60 30 45 20 30 10 15 0 0 Fixed-rate charter contracts are unaffected by changes in oil price, once in place. Fuel costs are paid by the
Slide 13: Scheduled Start-ups to Outpace Declines
Scheduled Start-ups to Outpace Declines Oil production in shuttle tanker-serviced fields Petrobras lifting cost for offshore Brazil deep-water oil in pre-salt areas in 4Q 2020 was US$4.47 / boe (exc. taxes) Source: Petrobras S.A. Operational and Financial Indicators report 4Q2020 13
Slide 14: Vessel Demand Set To Exceed Supply
Vessel Demand Set To Exceed Supply Global shuttle tanker supply / demand 90 80 Shuttle Tankers 70 60 50 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Vessel Supply (20 yr Scrapping) Vessel Demand Shuttle tankers often recycled or repurposed from 20 years old 8 active vessels are 20+ yea
Slide 15: ESG: Improving Efficiency, Reducing Emissions, and Driving Progress
ESG: Improving Efficiency, Reducing Emissions, and Driving Progress KNOP is dedicated to upholding Environmental, Social, and Governmental (“ESG”) principles and driving progress in the shipping industry and beyond. Inaugural ESG report published for 2019, providing transparency on performance a
Slide 16: Near-term Priorities
Near-term Priorities Continue to operate our vessels safely and efficiently and ensure the health and safety of our crew and employees. Continue to progress positive negotiations with lenders for re-financings due in August and November 2021. Secure new charter contract(s) for the Bodil Knutse
Slide 17: Summary
Summary Another strong and stable quarter with utilization of 91.6% for scheduled operations (effectively 97.5% if Windsor Knutsen included). Distributable cashflow of $21.7m, with coverage of 1.20. Maintained quarterly distribution of $0.52 for the 23rd consecutive quarter. $670m of remaini
Slide 18: Questions
Questions
Slide 19: Shuttle Tanker Market Overview Appendix
Shuttle Tanker Market Overview Appendix 19
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA refers to earnings before interest, depreciation, taxes, goodwill impairment charge and other financial items. Adjusted EBITDA is a non-GAAP financial measure used by investors to measure our performance. Adjusted EBITDA is used as a supple
KNOT Offshore Partners — Q1 2021 Earnings Presentation on 6ix