Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q4 2022 Earnings Presentation
19 slides from Knot Offshore Partners Lp's earnings presentation, Mar 15, 2023
Slide 1: Fourth Quarter 2022
Fourth Quarter 2022 March 15, 2023 (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: Fourth Quarter 2022 and Subsequent Highlights – 1
Fourth Quarter 2022 and Subsequent Highlights – 1 ▪ Announced cash distribution of $0.026 per common unit under 1099 structure, the 39th consecutive distribution overall since the Partnership first listed in 2013. ▪ Fleet operated with 96.1% utilization for scheduled operations, and 94.9% utilizatio
Slide 4: Fourth Quarter 2022 and Subsequent Highlights – 2
Fourth Quarter 2022 and Subsequent Highlights – 2 ▪ The Ingrid Knutsen was redelivered to the Partnership from its previous charterer on January 2, 2023, and the vessel subsequently performed a number of spot voyages, including in the conventional tanker market. On February 17, 2023, the Partnership
Slide 5: Income Statement
Income Statement Unaudited, USD thousands 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 FY 2022 FY 2021 Time charter and bareboat revenues 66,084 67,738 63,788 65,187 70,637 262,797 269,306 Voyage revenues 4,689 — — — — 4,689 — Loss of hire insurance recoveries 758 — — — 1,154 758 11,450 Other income 83 7
Slide 6: Balance Sheet
Balance Sheet Unaudited, USD thousands At Dec 31, At Dec 31, At Dec 31, At Dec 31, 2022 2021 2022 2021 Current assets: Current liabilities: Cash and cash equivalents 47,579 62,293 Current portion of long-term debt 369,787 88,578 Inventories 5,759 3,306 Derivative liabilities — 6,754 Amounts due from
Slide 7: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 FY 2022 FY 2021 Net income 6,027 15,972 9,888 26,780 23,133 58,667 53,876 Interest income (472) (289) (59) (2) — (822) (2) Interest expense 15,358 12,220 8,301 6,725 6,646 42,604 28,065 Depreciation 27,785 27,638 26,059
Slide 8: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies Contracted period Charterer’s option Operated in the spot market Agreed commercial terms, subject to charterer’s management approval Next anticipated drydock, at x vessel age (years) * Operates primarily in the North Sea Forward contracte
Slide 9: Forward Contract Coverage
Forward Contract Coverage Working to fill uncontracted vessel days* 100% 80% 60% 40% 20% 0% %Fixed Contract %Charterer's Option %Available / Spot Market * Excludes the anticipated charters for the Fortaleza Knutsen and Recife Knutsen for which we have agreed commercial terms but not yet signed. 9
Slide 10: Dropdown Inventory at Sponsor – Potential Acquisitions
Dropdown Inventory at Sponsor – Potential Acquisitions Average firm contracted charter length of 7.4 years (from charter commencement), with charterers’ options to extend by a further 5.9 years on average. Contracted period Charterer’s option x Next anticipated drydock, at vessel age (years) Notes:
Slide 11: FPSO Ordering and Deliveries Continuing At Pace in Brazil
FPSO Ordering and Deliveries Continuing At Pace in Brazil Source: Petrobras Strategic Plan 2023-2027, published November 30, 2022, page 64. https://www.investidorpetrobras.com.br/en/presentations-reports-and-events/presentations/ 11
Slide 12: Shuttle Tanker Orderbook Remains Muted In Face of Growing Demand
Shuttle Tanker Orderbook Remains Muted In Face of Growing Demand In Built Owner Vessel name Contract type Trading Area Service 2021 ALTERA ALTERA WAVE COA North Sea Y ▪ As a result of limited ordering activity, as well AET EAGLE PILAR TC Brazil Y as the main shipyards being effectively full with ALT
Slide 13: Summary and Near-term Priorities
Summary and Near-term Priorities Fourth quarter 2022 summary: ▪ Fleet operated with 96.1% utilization for scheduled operations, and 94.9% utilization taking into account the scheduled drydocking of the Carmen Knutsen. ▪ Announced cash distribution of $0.026 per common unit under 1099 structure, the
Slide 14: Updated KNOP Website, Same Address: www.knotoffshorepartners.com
Updated KNOP Website, Same Address: www.knotoffshorepartners.com 14
Slide 15: Questions
Questions 15
Slide 16: Appendices
Appendices 16
Slide 17: Appendix A – KNOP Attributes – Our Investment Case
Appendix A – KNOP Attributes – Our Investment Case ▪ 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 report distributions received (not a Form K-1). ▪ We are a market leader in the operation of shuttle tankers a
Slide 18: Appendix B – Petrobras Main New Production Systems, Already Contracted
Appendix B – Petrobras Main New Production Systems, Already Contracted Source: Petrobras Financial Performance report, 4Q2022, published March 1, 2023, page 15. https://api.mziq.com/mzfilemanager/v2/d/25fdf098-34f5-4608-b7fa- 17d60b2de47d/c2bf100e-e750-3401-63b2-50c8d593f5c0?origin=1 18
Slide 19: Appendix C – Non-GAAP Financial Measures
Appendix C – 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 use
KNOT Offshore Partners — Q4 2022 Earnings Presentation on 6ix