Knot Offshore Partners Lp · NYSE:KNOP

Knot Offshore Partners Lp — Q4 2015 Earnings Presentation

18 slides from Knot Offshore Partners Lp's earnings presentation, Feb 18, 2016

  1. Slide 1: Fourth Quarter 2015 Results

    Fourth Quarter 2015 Results February 18, 2016

  2. 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. Except for the historical information contained herein, the matters discussed in this presentation include forward-looking statements that involve risks and unce

  3. Slide 3: Financial Highlights

    Financial Highlights  Highest quarterly revenues of $42.4 million  Highest quarterly Adjusted EBITDA(1) of $33.8 million  Highest quarterly net income of $17.6 million  Highest quarterly earnings per unit of $0.62  Highest Distributable cash flow(1) of $18.1 million, with a coverage ratio 1.2 

  4. Slide 4: Recent Commercial Events

    Recent Commercial Events  Very strong operational performance in Q4: 99.9% utilisation of the fleet (YTD: 99.9%)  In October 2015, Windsor Knutsen commenced on a two-year time charter with BG Group, the charter also includes six one-year extension options – The hire rate for the Windsor Knutsen is

  5. Slide 5: Income Statement

    Income Statement Unaudited, USD in thousands 4Q 2015 3Q 2015 2Q 2015 FY 2015 FY 2014 Time charter and bareboat revenues 42,417 39,281 36,981 154,750 112,784 Other income 120 3 2 274 57 Total revenues 42,537 39,284 36,983 155,024 112,841 Vessel operating expenses 7,636 5,936 7,164 27,543 23,879 Depre

  6. Slide 6: Adjusted EBITDA

    Adjusted EBITDA Unaudited, USD in thousands 4Q 2015 3Q 2015 2Q 2015 FY2015 FY2014 Net income 17,567 8,802 6,887 40,443 27,392 Interest income (5) 0 (2) (8) (13) Interest expense 4,731 4,322 4,212 17,451 15,271 Depreciation 13,464 12,420 11,560 48,844 34,322 Goodwill impairment charge — — 6,217 6,217

  7. Slide 7: Distributable cash flow

    Distributable cash flow Unaudited, USD in thousands 4Q 2015 3Q 2015 2Q 2015 FY2015 FY2014 Net income 17,567 8,802 6,887 40,442 27,392 Add: Depreciation 13,464 12,420 11,560 48,844 34,322 Goodwill impairment charge — — 6,217 6,217 — Other non-cash items; deferred costs amortization 289 289 287 1,149

  8. Slide 8: Stable and predictable cash development

    Stable and predictable cash development 100 90 80 70 60 50 40 30 20 10 0 8

  9. Slide 9: Balance Sheet - Assets

    Balance Sheet - Assets Unaudited, USD in thousands At December 31, At December 31, 2015 2014 Current assets: Cash and cash equivalents 23,573 30,746 Other current assets 3,856 5,003 Total current assets 27,429 35,749 Long-term assets: Vessels and equipment: 1,192,927 1,021,857 Goodwill — 6,217 Defer

  10. Slide 10: Balance Sheet - Liabilities and Partners’ Equity

    Balance Sheet - Liabilities and Partners’ Equity Unaudited, USD in thousands At December 31, At December 31, 2015 2014 Current liabilities: Current portion of long-term debt 49,684 38,718 Derivative liabilities 5,138 7,450 Contract liabilities 1,518 1,518 Other current liabilities 10,345 12,345 Tota

  11. Slide 11: Stable operational performance result in stable financial performance

    Stable operational performance result in stable financial performane UTILIZATION (%) REVENUE (USD million) 41,2 39,3 100% 99,7% 99,7% 99,9% 100% 99,6% 99,9% 36,2 37 99,2% 99,3% 99,4% 98,9% 34,3 34,7 20,5 22,2 21,8 22,1 17,3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014

  12. Slide 12: Long-term Contracts Backed by Leading Energy Companies

    Long-term Contracts Backed by Leading Energy Companies Name Area 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 (1) Windsor Knutsen Brazil (1) Bodil Knutsen N. Sea Fortaleza Knutsen Brazil Recife Knutsen Brazil Carmen Knutsen Brazil Hilda Knutsen N. Sea Torill Knutsen N.

  13. Slide 13: Significant fleet growth since IPO

    Significant fleet growth since IPO 13

  14. Slide 14: Dropdown inventory: Five potential acquisitions

    Dropdown inventory: Five potential acquisitions Name Area 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Raquel Knutsen Brazil H2816 Brazil H2817 Brazil H686 Brazil H2818 Brazil Fixed contract periods for the dropdown fleet are 5.9(1)years on average Charterers also have

  15. Slide 15: Summary

    Summary Solid contract base – Revenue backlog of $ 850 million and 1 average contract duration of 5.6 years(1) Modern shuttle tanker fleet, average age 4.1 years vs. industry 2 average of 10.3 years(1) 13 Excellent operating results – 99.6% average utilisation since IPO Large sponser asset base – pr

  16. Slide 16: Thank you, any questions ?

    KNOT Offshore Partners LP Thank you, any questions ?

  17. Slide 17: Appendix

    KNOT Offshore Partners LP Appendix

  18. Slide 18: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA refers to earnings before interest, other financial items, taxes, non-controlling interest, depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure used by investors to measure our performance. The Partnership believe

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