Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q3 2024 Earnings Presentation
22 slides from Knot Offshore Partners Lp's earnings presentation, Dec 5, 2024
Slide 1: 3Q 2024 Earnings Presentation
3Q 2024 December 5, 2024 (NYSE:KNOP)
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: 3Q 2024 and subsequent: financial headlines
3Q 2024 and subsequent: financial headlines ▪ 3Q 2024 financial headlines include: − Revenues: $76.3m − Operating income: $17.2m − Net loss: $3.8m − Adjusted EDITDA: $45.1m − Available liquidity on September 30, 2024: $77.2m, comprising $67.2m in cash and cash equivalents plus $10m of undrawn credit
Slide 4: December 2024 momentum
December 2024 momentum ▪ Continued tightening in market for shuttle tankers − Brazil: FPSO ordering continues and recent deliveries being made early − North Sea: Johan Castberg production start due early 2025 ▪ Contractual backlog expanded (as at September 30, 2024) − $980m of fixed contracts averag
Slide 5: 3Q 2024 developments discussed on September 3, 2024
3Q 2024 developments discussed on September 3, 2024 ▪ Torill Knutsen ▪ in August 2024, the repair work on the broken generator rotor was completed. The Partnership anticipates receipt of insurance payments for reduced marketability during the impacted period, as well as in respect of the repair itse
Slide 6: Dan Cisne sale / Tuva Knutsen purchase
Dan Cisne sale / Tuva Knutsen purchase ▪ On September 3, 2024, we: ▪ purchased the Tuva Knutsen from Knutsen NYK; and ▪ sold the Dan Cisne to Knutsen NYK ▪ Key terms ▪ Purchase price for the Tuva Knutsen was $97.5m less $68.6m of net outstanding debt ($69.0m gross debt less $0.4m of capitalized fina
Slide 7: Recent developments
Recent developments ▪ Ingrid Knutsen ▪ On October 1, 2024 the Ingrid Knutsen began operating under a time charter with Eni for a fixed period of two years plus two charterer’s options each of one year. ▪ Hilda Knutsen ▪ On October 14, 2024 a time charter for the Hilda Knutsen was executed with an oi
Slide 8: Income statement
Income statement Unaudited, USD thousands 3Q 2024 2Q 2024 3Q 2023 FY 2023 FY 2022 Time charter and bareboat revenues 75,682 73,437 72,188 277,084 262,797 Voyage revenues 124 351 10 8,849 4,689 Loss of hire insurance recoveries 0 78 0 2,840 758 Other income 1,189 554 485 1,943 341 Total revenues 76,9
Slide 9: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 3Q 2024 2Q 2024 3Q 2023 FY 2023 FY 2022 Net income (loss) (3,773) (12,851) 12,641 (34,328) 58,667 Interest income (857) (897) (932) (3,468) (822) Interest expense 16,857 16,863 18,493 72,070 42,604 Depreciation 27,902 27,748 27,472 110,902 107,419 Impairment
Slide 10: Balance sheet
Balance sheet Unaudited, USD thousands At Sep 30, At Dec 31, At Sep 30, At Dec 31, 2024 2023 2024 2023 Current assets: Current liabilities: Cash and cash equivalents 67,225 63,921 Current portion of long-term debt 174,888 98,960 Inventories 3,833 3,696 Current lease liabilities 1,171 982 Amounts due
Slide 11: Long-term borrowings
Long-term borrowings Unaudited, USD thousands Original Outstanding at of which Balloon Vessels providing security at June 30, 2024 amount1 September 30, Current due at 2024 Instalments2 maturity3 1. Revolving credit facility with NTT due 25,0001 15,000 15,000 Unsecured August 2025 2. Loan due Septem
Slide 12: Forward contracted revenue backed by leading energy companies
Forward contracted revenue backed by leading energy companies 3Q 2024(1) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Shell InsurancePetroChina Shell ExxonMobil . Contracted period Windsor 15 . 18 20 Equinor KNOT . Equinor Charterer’s option Bodil * 10 . 15 . 18 Transpetro (BBC) Trans
Slide 13: Forward contract coverage
Forward contract coverage1 Focus remains on growing utilisation and forward visibility 100% 80% 60% 40% 20% 0% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 %Fixed Contract %Charterer's Option %Available / Spot Market (1) This chart includes contract developments after September 30, 2024, up to the date o
Slide 14: Dropdown inventory held/ordered by Sponsor as at reporting date
Dropdown inventory held/ordered by Sponsor as at reporting date The acquisition by KNOP of any dropdown vessels in the future is subject to approval of the Partnership’s independent Conflicts Committee, as well as the board of directors of each of KNOP and Knutsen NYK. There can be no assurance that
Slide 15: Continued growth in oil production outlook in Brazil
Continued growth in oil production outlook in Brazil Source: Petrobras Strategic Plan 2025-2029, announcement on November 22, 2024 https://petrobras.com.br/en/quem-somos/estrategia www.knotoffshorepartners.com www.knotoffshorepartners.com 15
Slide 16: FPSO ordering and deliveries continuing at pace in Brazil
FPSO ordering and deliveries continuing at pace in Brazil Source: Petrobras Strategic Plan 2025-2029, announcement on November 22, 2024 https://petrobras.com.br/en/quem-somos/estrategia www.knotoffshorepartners.com www.knotoffshorepartners.com 16
Slide 17: KNOP attributes – US investor considerations
KNOP attributes – US investor considerations ▪ US investors are directed to the Investors FAQs and US Tax Information sections of KNOP’s website: − https://www.knotoffshorepartners.com/investors/investor-faqs/ − https://www.knotoffshorepartners.com/investors/stock-info/us-tax- information/default.as
Slide 18: KNOP attributes – our investment case
KNOP attributes – our investment case ▪ We are a market leader in the operation of shuttle tankers and our Sponsor has more than 40 years’ experience and investment in this business. ▪ Specialist vessels are critical infrastructure with limited replacement risk required to deliver oil production fro
Slide 19: Summary and near-term priorities
Summary and near-term priorities 3Q 2024 & subsequent: ▪ Utilization of 98.8%, with no scheduled drydockings ▪ Generated: − Revenues: $76.3m − Operating income: $17.2m − Net loss: $3.8m − Adjusted EDITDA: $45.1m ▪ Secured additional fixed contract periods for Tordis Knutsen, Lena Knutsen, Hilda Knut
Slide 20: Questions
Questions www.knotoffshorepartners.com www.knotoffshorepartners.com 20
Slide 21: Appendix
Appendix www.knotoffshorepartners.com www.knotoffshorepartners.com 21
Slide 22: Appendix – Non-GAAP financial measures
Appendix – Non-GAAP financial measures Adjusted EBITDA Adjusted EBITDA refers to earnings before interest, depreciation, taxes, impairments and other financial items (including other finance expenses, realised and unrealised gain (loss) on derivative instruments and net gain (loss) on foreign curren
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