Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q2 2017 Earnings Presentation
18 slides from Knot Offshore Partners Lp's earnings presentation, Aug 10, 2017
Slide 1: Second Quarter 2017 Results
Second Quarter 2017 Results August 10, 2017
Slide 2: Notice to Recipients
Notice to Recipients This presentation is not a prospectus and is not an offer to sell, nor a solicitation of an offer to buy, securities. This presentation contains certain forward-looking statements concerning future events and KNOT Offshore Partners LP’s (“KNOP”) operations, performance and finan
Slide 3: Financial Highlights
Financial Highlights Highest quarterly revenues of $54.4 million and net income of $16.9 million Highest quarterly Adjusted EBITDA(1) of $43.5 million Highest quarterly distributable cash flow1of $23.4 million with highest distribution coverage ratio of 1.43 Declared cash distribution of $0.
Slide 4: Other events
Other events The Partnership entered into a share purchase agreement with Knutsen NYK to acquire the company that owns the Lena Knutsen Completed the acquisition of the Vigdis Knutsen which is on a 5 year charter with Shell Completed successfully refinancing of the Hilda Knutsen Entered into
Slide 5: Income Statement
Income Statement Unaudited, USD in thousands 2Q 2017 1Q 2017 2Q 2016 FY 2016 Time charter and bareboat revenues 51,537 43,747 42,864 172,878 Loss of hire insurance recoveries 2,276 1,150 — — Other income 593 95 199 793 Total revenues 54,406 44,992 43,063 173,671 Vessel operating expenses 9,427 10,28
Slide 6: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD in thousands 2Q 2017 1Q 2017 2Q 2016 FY 2016 Net income 16,915 11,429 11,578 61,102 Interest income (44) (36) 0 (24) Interest expense 7,252 6,215 5,055 20,867 Depreciation 17,372 15,753 13,913 56,230 Income tax (benefits) expense 3 3 3 (15) EBITDA(1) 41,498 33,364 30,5
Slide 7: Distributable cash flow
Distributable cash flow Unaudited, USD in thousands 2Q 2017 1Q 2017 2Q 2016 FY 2016 Net income 16,915 11,429 11,578 61,102 Add: Depreciation 17,372 15,753 13,913 56,230 Other non-cash items; deferred costs amortization debt 407 348 287 1,198 Unrealized losses from interest rate derivatives and forei
Slide 8: Balance sheet
Balance sheet At June 30, At December 31, At June 30, At December 31, Unaudited, USD in thousands 2017 2016 2017 2016 Current assets: Current liabilities Cash and cash equivalents 64,501 27,664 Current portion of long-term debt 65,018 58,984 Inventories 1,712 1,176 Derivative liabilities 2,045 3,304
Slide 9: Pending - Lena Knutsen drop-down
Pending - Lena Knutsen drop-down Lena Knutsen Contract detail Charterer: Royal Dutch Shell (1) Contract type: Time Charter Contract end date: Q3 2022 Option period: two consecutive 5 years extension options Trading area: Brazil Estimated NTM EBITDA(2): $15.8 million Estimated NTM net i
Slide 10: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies Name 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Windsor Knutsen (1) Bodil Knutsen(1) Fortaleza Knutsen Recife Knutsen Carmen Knutsen Hilda Knutsen Torill Knutsen Dan Cisne Dan Sabia Ingrid Knutsen Raquel Knutsen T
Slide 11: Significant growth fleet since IPO
Significant growth fleet since IPO(1) 250% fleet growth since IPO 1 14 1 1 1 2 3 1 4 IPO fleet 2013 2014 2015 2016 1Q 2017 2Q 2017 3Q 2017 End of Q3 2017 (1) Assumes closing of the Lena Knutsen acquisition 11
Slide 12: Summary
Summary Highest ever quarterly performance for Revenue and Adjusted EBITDA(1) Another strong operational result – 100% utilization of the fleet in 2Q(2) – 99.7% since IPO Acquisition of Vigdis Knutsen and agreement to acquire Lena Knutsen Good access to attractive bank financing Attractive
Slide 13: Shuttle Tanker Market Overview
Shuttle Tanker Market Overview Thank you, any questions? 13
Slide 14: Appendix
Appendix APPENDIX
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA refers to earnings before interest, other financial items, taxes, non-controlling interest, depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure used by investors to measure our performance. The Partnership believe
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Distributable Cash Flow Distributable cash flow represents net income adjusted for depreciation and amortization, unrealized gains and losses from derivatives, unrealized foreign exchange gains and losses, distributions on the Series A Preferred Units, goodwill impairment
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures . The reconciliation of Distributable Cash flow is set forth in the table below: For the Quarter Ended (USD in thousands) 30-Sep-15 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun 17 Net income 8,802 17,567 10,663 11,578 19,357 19,505 11,429 16,915 Add:
Slide 18: Reconciliation of estimated net income and estimated EBITDA for KNOT 26
Reconciliation of estimated net income and estimated EBITDA for KNOT 26 For KNOT 26, the entity that the Partnership intends to purchase in the pending acquisition, estimated net income and estimated EBITDA for the twelve months following the closing of the acquisition are based on the following ass
KNOT Offshore Partners — Q2 2017 Earnings Presentation on 6ix