Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q2 2016 Earnings Presentation
19 slides from Knot Offshore Partners Lp's earnings presentation, Aug 11, 2016
Slide 1: Second Quarter 2016 Results
Second Quarter 2016 Results August 11, 2016
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
Slide 3: Financial Highlights
Financial Highlights Highest quarterly revenues of $43.1 million. Highest quarterly operating income of $20.2 million and net income of $11.6 million. Highest quarterly Adjusted EBITDA(1) of $34.1 million. Highest quarterly distributable cash flow(1) of $18.5, with a coverage ratio of 1.23.
Slide 4: KNOP has very good access to bank financing
KNOP has very good access to bank financing As of June 30, 2016, $55.7 million in available liquidity, Geographically diversified bank group consisted of cash $25.7 million and $30 million undrawn revolving credit facility 8% 7% 20% KNOP has nine supportive banks that are financing the partnersh
Slide 5: Income Statement
Income Statement Unaudited, USD in thousands 2Q 2016 1Q 2016 2Q 2015 FY 2015 Time charter and bareboat revenues 42,864 41,826 36,071 154,750 Other income 199 200 149 274 Total revenues 43,063 42,026 36,220 155,024 Vessel operating expenses 7,975 7,647 6,807 27,543 Depreciation 13,913 13,892 11,400 4
Slide 6: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD in thousands 2Q 2016 1Q 2016 2Q 2015 FY2015 Net income 11,578 10,663 6,887 40,443 Interest income — (2) (2) (8) Interest expense 5,055 5,029 4,212 17,451 Depreciation 13,913 13,892 11,560 48,844 Goodwill impairment charge — — 6,217 6,217 Income tax (benefits) expense 3
Slide 7: Distributable cash flow
Distributable cash flow Unaudited, USD in thousands 2Q 2016 1Q 2016 2Q 2015 FY2015 Net income 11,578 10,663 6,887 40,442 Add: Depreciation 13,913 13,892 11,560 48,844 Goodwill impairment charge — — 6,217 6,217 Other non-cash items; deferred costs amortization debt 287 287 288 1,149 Unrealized losses
Slide 8: Balance sheet
Balance sheet At June 30, At December 31, At June 30, At December 31, Unaudited, USD in thousands 2016 2015 2016 2015 Current assets: Current liabilities Cash and cash equivalents 25,667 23,573 Current portion of long-term debt 53,888 48,535 Derivative assets 232 — Derivative liabilities 3,747 5,138
Slide 9: Financial guidance for existing fleet for year 2016
Financial guidance for existing fleet for year 2016 Guidance YTD 16 Figures Achieved Revenues $ 167-170 m $85.1 m 51% EBITDA $128-132 m $67.2 m 52% Distributable Cash Flow $75-79 m $36.4 m 47% Distribution $60 m $30.1 m 50% Coverage ratio ≈1.25 1.21 Despite docking of Bodil Knutsen in first quarter
Slide 10: Stable operational performance results in stable financial performance
Stable operational performance results in stable financial performane UTILIZATION (%) REVENUE (USD million) Average of 99.7 % since IPO 28% CAGR 100% 99,7% 99,7% 99,9% 100% 99,6% 99,9% 99,8 % 99,90% since IPO 42,5 42,0 43,1 99,2% 99,3% 99,4% 98,9% 39,3 36,2 37 34,3 34,7 20,5 22,2 21,8 22,1 17,3 Q2 Q
Slide 11: 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.
Slide 12: Significant fleet growth since IPO
Significant fleet growth since IPO 12
Slide 13: Positive news from Brazil
Positive news from Brazil Total production split by projects – thousands boe/d • Petrobras sold 66% share in 1 billion-barrel Carcara to Statoil - making the Norwegian major the first international oil company to acquire operatorship in Brazil’s giant pre-salt fields • Petrobras announced in May/Jun
Slide 14: Still significant demand for new shuttle tanker projects
Still significant demand for new shuttle tanker projects As of today shuttle tanker market extremely tight, without any free capacity – No speculative newbuildings orders Fearnleys sees a significant demand for new shuttle tankers going forward – Expect tenders for in excess of 40 vessels up to
Slide 15: 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 5.8(1)years on average Charterers also have
Slide 16: Summary
Summary Solid contract base – Revenue backlog of $ 746 million and 1 average contract duration of 5.1 years(1) Modern shuttle tanker fleet, average age 4.6 years vs. industry 2 average of 11.2 years excluding KNOP fleet(1) 13 Excellent operating results – 99.7%(2) average utilisation since IPO Large
Slide 17: Shuttle Tanker Market Overview
Shuttle Tanker Market Overview Thank you, any questions? 17
Slide 18: Appendix
Appendix APPENDIX
Slide 19: 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. Adjusted EBITDA is used
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