Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q4 2020 Earnings Presentation
19 slides from Knot Offshore Partners Lp's earnings presentation, Mar 11, 2021
Slide 1: Fourth Quarter 2020 Results
Fourth Quarter 2020 Results March 11, 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: Fourth Quarter 2020 and Subsequent Highlights
Fourth Quarter 2020 and Subsequent Highlights ▪ Total revenues of $69.9 million, operating income of $30.4 million and net income of $24.6 million. ▪ Quarterly Adjusted EBITDA of $52.9 million. ▪ Distributable Cash Flow of $28.6 million, with a coverage ratio of 1.58. ▪ Operated with 98.6% scheduled
Slide 4: 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 5: Income Statement
Income Statement Unaudited, USD thousands 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 FY 2020 Time charter and bareboat revenues (1) 69,864 71,241 70,250 67,226(1) 70,063 278,581 Other income(2) (5) 39 9 598(2) 18 641 Total revenues 69,859 71,280 70,259 67,824 70,081 279,222 Vessel operating expenses 15
Slide 6: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 FY 2020 Net income (loss) 24,605 25,076 21,683 (6,139) 23,764 65,225 Interest income (4) — (3) (118) (169) (125) Interest expense 6,113 6,558 8,512 10,462 11,433 31,645 Depreciation 22,466 22,453 22,451 22,373 22,554 89
Slide 7: Distributable Cash Flow
Distributable Cash Flow Unaudited, USD thousands 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 FY 2020 Net income (loss) 24,605 25,076 21,683 (6,139) 23,764 65,225 Add: Depreciation 22,466 22,453 22,451 22,373 22,554 89,743 Other non-cash items; amortization of deferred 617 624 626 636 647 2,503 debt issu
Slide 8: Balance Sheet
Balance Sheet At Dec 31, At Dec 31, At Dec 31, At Dec 31, Unaudited, USD thousands 2020 2019 2020 2019 Current assets: Current liabilities: Cash and cash equivalents 52,583 43,525 Current portion of long-term debt 184,188 83,453 Inventories 2,652 2,292 Derivative liabilities 10,695 910 Derivative as
Slide 9: Tove Knutsen Acquisition
Tove Knutsen Acquisition ▪ 153,000 DWT DP2 shuttle tanker. ▪ Vessel delivered from shipyard September 28, 2020, sailed to Brazil and undertook series of Equinor and Petrobras (for Brazil operations) approval tests. ▪ Commenced 7-year fixed charter to Equinor on November 27, 2020, with further 13 yea
Slide 10: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies At December 31, 2020: Remaining forward contracted revenue of $738 million (exc. options) and average remaining charter of 2.9 years Charterers also have the option to extend these charters by a further 3.1 years on average Charterer's Ag
Slide 11: Dropdown Inventory at Sponsor – Potential Acquisitions
Dropdown Inventory at Sponsor – 6 Potential Acquisitions(1) At December 31, 2020: 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 (y
Slide 12: Critical Service to Top-tier Customers on Long-term, Stable Contracts
Critical Service to Top-tier Customers on Long-term, Stable Contracts Integral to operation of long-term offshore projects Contracts provide stability and insulation High upfront costs to construct and initiate offshore oil Firm charter periods, typically initially 5-7 years for production proje
Slide 13: Global Fleet of Vessels Serving Two Major Offshore Geographies
Global Fleet of 75 Vessels Serving Two Major Offshore Geographies North Sea / Barents Sea Offshore Brazil Shuttle tankers currently in operation Shuttle tankers currently in operation 29 37 Primary characteristics Primary characteristics Stable production High growth expected High specifications Ver
Slide 14: 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 14
Slide 15: 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 discussions with lenders for refinancings due in August and November 2021. ▪ Secure new charter contract(s) for the Bodil Knutsen where dis
Slide 16: Summary
Summary ▪ Another strong and stable operational quarter with above budget utilization of 98.6% for scheduled operations. ▪ Distributable cashflow of $28.6m, with coverage of 1.58 which continues to give the Partnership a degree of flexibility to manage any short to mid-term headwinds. ▪ Maintained q
Slide 17: Questions
Questions
Slide 18: Shuttle Tanker Market Overview
Shuttle Tanker Market Overview Appendix 18
Slide 19: 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
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