Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q2 2020 Earnings Presentation
18 slides from Knot Offshore Partners Lp's earnings presentation, Aug 27, 2020
Slide 1: Second Quarter 2020 Results
Second Quarter 2020 Results August 27, 2020
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: Q2 2020 Financial Highlights and Recent Events
Q2 2020 Financial Highlights and Recent Events Despite the continuing impact of COVID-19 on global economic activity and the decline and volatility in oil prices, the Partnership has so far not experienced any material disruption in its operations One of the best set of quarterly results ever fo
Slide 4: Income Statement
Income Statement Unaudited, USD thousands 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 FY 2019 Time charter and bareboat revenues 70,250 67,226(1) 70,063 70,983 70,908 282,502 Other income 9 598 18 26 14 59 Total revenues 70,259 67,824 70,081 71,009 70,922 282,561 Vessel operating expenses 13,112 15,634
Slide 5: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 FY 2019 Net income (loss) 21,683 (6,139) 23,764 14,148 8,176 58,957 Interest income (3) (118) (169) (225) (233) (865) Interest expense 8,512 10,462 11,433 12,459 13,186 50,735 Depreciation 22,451 22,373 22,554 22,430 22
Slide 6: Distributable Cash Flow
Distributable Cash Flow Unaudited, USD thousands 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 FY 2019 Net income (loss) 21,683 (6,139) 23,764 14,148 8,176 58,957 Add: Depreciation 22,451 22,373 22,554 22,430 22,429 89,844 Other non-cash items; amortization of deferred 626 636 647 656 658 2,617 debt issua
Slide 7: Balance Sheet
Balance Sheet Unaudited, USD thousands At Jun 30, 2020 At Dec 31, 2019 At Jun 30, 2020 At Dec 31, 2019 Current assets: Current liabilities: Cash and cash equivalents 41,436 43,525 Current portion of long-term 83,523 83,453 debt Inventories 2,242 2,292 Derivative liabilities 7,211 910 Derivative asse
Slide 8: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies Vessel name 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Windsor Knutsen Bodil Knutsen Fortaleza Knutsen Recife Knutsen Carmen Knutsen Hilda Knutsen Torill Knutsen Dan Cisne Dan Sabia Ingrid Knutsen Raquel Knutsen Tordis Knusten V
Slide 9: Dropdown Inventory: 7 Potential Acquisitions
Dropdown Inventory: 7 Potential Acquisitions(1) Name 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Hull 3114 Hull 3115 (2) Hull 687 Hull 728 Hull 5482 Hull 5483 Hull 786 Yard Fixed contract Option period Fixed contract periods for the dropdown fleet are 5.6 years on average Charterers
Slide 10: Brazil Production Resilience
Brazil Production Resilience “It hasn’t been a good year for any oil-producing country, but the exceptionally strong development in the Brazilian oil and gas sector in 2019 has kept the country’s production relatively resilient through the Covid-19 crisis. With four new floating production, storage
Slide 11: Brazil Production Development
Brazil Production Development 11
Slide 12: North Sea Production Development
North Sea Production Development 12
Slide 13: Brazil Outlook
Brazil Outlook Brazil - Long-term outlook icant Pre Salt Potenti: * Pre-Sal Petroleo was established in 2013 for the purpose of managing Production Sharing Agreements, commercialisation and individualisation of agreements on behalf of the Brazilian government in the Pre-Salt area. * So far, 17 Pre-S
Slide 14: Summary
Summary A very strong quarter with a continued stable operational performance at 99.7% utilization for scheduled operations Distributable cashflow (1) of $30.7m, with coverage of 1.70 giving the Partnership a degree of flexibility to manage potential short to mid term headwinds Maintained quar
Slide 15: Shuttle Tanker Market Overview
Shuttle Tanker Market Overview Questions 15
Slide 16: Appendix
Appendix Appendix
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 1 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 supp
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2 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 impairme
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