Slide 1: Second Quarter 2023
Second Quarter 2023 August 31, 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: Second Quarter 2023 and Subsequent Highlights – 1
Second Quarter 2023 and Subsequent Highlights – 1 Announced cash distribution of $0.026 per common unit under 1099 structure, paid in August 2023, the 41st consecutive quarterly distribution since the Partnership first listed in 2013. Fleet operated with 99.3% utilization for scheduled operation
Slide 4: Second Quarter 2023 and Subsequent Highlights – 2
Second Quarter 2023 and Subsequent Highlights – 2 The Hilda Knutsen and the Torill Knutsen each continued to operate on separate time charter contracts with a subsidiary of the Partnership’s sponsor, Knutsen NYK Offshore Tankers AS (“Knutsen NYK”) at a reduced charter rate, and hence we are contin
Slide 5: Second Quarter 2023 and Subsequent Highlights – 3
Second Quarter 2023 and Subsequent Highlights – 3 At June 30, 2023, the Partnership had: $68.1 million in available liquidity, which included cash and cash equivalents of $63.1 million Net exposure to floating interest rate fluctuations of approximately $328 million, based on total interest-be
Slide 6: Income Statement
Income Statement Unaudited, USD thousands 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 FY 2022 FY 2021 Time charter and bareboat revenues 69,924 62,933 66,084 67,738 63,788 262,797 269,306 Voyage revenues 1,585 7,254 4,689 — — 4,689 — Loss of hire insurance recoveries 1,424 911 758 — — 758 11,450 Other i
Slide 7: Balance Sheet
Balance Sheet Unaudited, USD thousands At Jun 30, At Dec 31, At Jun 30, At Dec 31, 2023 2022 2023 2022 Current assets: Current liabilities: Cash and cash equivalents 63,124 47,579 Current portion of long-term debt 188,317 369,787 Inventories 3,096 5,759 Derivative liabilities 125 — Amounts due from
Slide 8: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 FY 2022 FY 2021 Net income (40,390) (1,297) 6,027 15,972 9,888 58,667 53,876 Interest income (861) (683) (472) (289) (59) (822) (2) Interest expense 18,107 17,369 15,358 12,220 8,301 42,604 28,065 Depreciation 28,107 27
Slide 9: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies 9
Slide 10: Forward Contract Coverage
Forward Contract Coverage Our charters have 2023 well-covered; focus on 2024 and beyond 100% 80% 60% 40% 20% 0% Q3 2023 Q4 Q1 2024 Q2 Q3 Q4 %Fixed Contracts at March 31, 2023 %Fixed Contract added Q2 2023 %Charterer's Options to extend 10
Slide 11: Dropdown Inventory Held By Sponsor – Potential Future Acquisitions
Dropdown Inventory Held By Sponsor – Potential Future Acquisitions The acquisition by KNOP of any dropdown vessels in the future is subject to approval of the Partnership’s independent Conflicts Committee, as well as the board of directors of each of KNOP and Knutsen NYK. There can be no assurance t
Slide 12: 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/ 12
Slide 13: KNOP Attributes – Our Investment Case
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 and our Sponso
Slide 14: Summary and Near-term Priorities
Summary and Near-term Priorities Second quarter 2023 summary: Fleet operated with 99.3% utilization for scheduled operations, and 95.5% utilization taking into account the scheduled drydockings of the Brasil Knutsen and the Hilda Knutsen. Announced cash distribution of $0.026 per common unit und
Slide 15: Questions
Questions 15
Slide 16: Appendices
Appendices 16
Slide 17: Appendix A – Petrobras Main New Production Systems, Already Contracted
Appendix A – 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 17
Slide 18: Appendix B – Non-GAAP Financial Measures
Appendix B – 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
Slide 19: Appendix C – KNOP Website
Appendix C – KNOP Website Please visit our website at www.knotoffshorepartners.com for more information about our vessels and the shuttle tanker industry, as well as all of our financial reports and accounts, stock information, our ESG reports, information about our governance and management, and an