Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q3 2018 Earnings Presentation
14 slides from Knot Offshore Partners Lp's earnings presentation, Nov 27, 2018
Slide 1: Third Quarter 2018 Results
Third Quarter 2018 Results November 27, 2018
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: Q3 2018 Financial Highlights
Q3 2018 Financial Highlights Generated total revenue of $70.7 million, operating income of $31.7 million and net income of 20.9 million. Generated quarterly Adjusted EBITDA(1) of $54.1 million. Generated distribution cash flow(1) of $26.3 million, with a coverage ratio(2) of 1.46x. Declared
Slide 4: Recent events
Recent events Extended the time charter of the Windsor Knutsen by one additional year until October 2019. Extended the duration of the Hilda Knutsen time charter for four years and three one-year options. Extended the time charter of the Torill Knutsen by one additional year until November 201
Slide 5: Income Statement
Income Statement Unaudited, USD in thousands 3Q 2018 2Q 2018 3Q 2017 FY 2017 Time charter and bareboat revenues 70,706 69,221 57,970 212,501 Loss of hire insurance recoveries — 450 — 5,176 Other income 12 94 247 1,526 Total revenues 70,718 69,765 58,217 219,203 Vessel operating expenses 15,289 13,97
Slide 6: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD in thousands 3Q 2018 2Q 2018 3Q 2017 FY 2017 Net income 20,931 21,681 21,079 68,064 Interest income (196) (161) (68) (248) Interest expense 13,472 12,526 8,040 30,714 Depreciation 22,400 22,332 18,379 71,583 Income tax (benefits) expense 9 3 3 (16) EBITDA(1) 56,616 56,
Slide 7: Distributable cash flow
Distributable cash flow Unaudited, USD in thousands 3Q 2018 2Q 2018 3Q 2017 FY 2017 Net income 20,931 21,681 21,079 68,064 Add: Depreciation 22,400 22,332 18,379 71,583 Other non-cash items; deferred costs 1,234 697 469 1,736 amortization debt Unrealized losses from interest rate derivatives — — — 1
Slide 8: Balance sheet
Balance sheet At September 30, At December 31, At September 30, At December 31, Unaudited, USD in thousands 2018 2017 2018 2017 Current assets: Current liabilities Cash and cash equivalents 56,021 46,104 Current portion of long-term debt 105,679 92,985 Inventories 2,508 2,241 Derivative liabilities
Slide 9: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies Vessel name 2018 2019 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
Slide 10: Summary
Summary Another quarter of strong operational and financial performance. Closed the $375 million multi-vessels refinancing. Extend contracts on four vessels. The sponsor rebuilding the dropdown inventory. Future strong outlook for the shuttle tanker business. Attractive value proposition
Slide 11: Shuttle Tanker Market Overview
Shuttle Tanker Market Overview Thank you, any questions? 11
Slide 12: Appendix
Appendix APPENDIX
Slide 13: 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
Slide 14: 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
KNOT Offshore Partners — Q3 2018 Earnings Presentation on 6ix