Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q3 2021 Earnings Presentation
20 slides from Knot Offshore Partners Lp's earnings presentation, Nov 18, 2021
Slide 1: Third Quarter 2021 Results
Third Quarter 2021 Results November 18, 2021 (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: Third Quarter 2021 and Subsequent Highlights - 1
Third Quarter 2021 and Subsequent Highlights - 1 Generated total revenues of $66.6 million, operating income of $21.1 million and net income of $13.5 million. Generated Adjusted EBITDA of $47.2 million. Operated with 91.9% scheduled fleet utilization, driven by several vessels experiencing tem
Slide 4: Third Quarter 2021 and Subsequent Highlights - 2
Third Quarter 2021 and Subsequent Highlights - 2 Windsor Knutsen The Partnership signed the previously agreed one-year fixed time charter contract with PetroChina for the Windsor Knutsen (with owner’s option to substitute and with charterer’s options to extend the charter by one one-year period an
Slide 5: Income Statement
Income Statement Unaudited, USD thousands 3Q 2021 2Q 2021 1Q 2021 4Q 2020 3Q 2020 FY 2020 Time charter and bareboat revenues 66,559 66,513 65,598 69,864 71,241 278,581 Loss of hire insurance recoveries 17 4,397 5,882 — — — Other income 3 27 1 (5) 39 641 Total revenues 66,579 70,937 71,481 69,859 71,
Slide 6: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 3Q 2021 2Q 2021 1Q 2021 4Q 2020 3Q 2020 FY 2020 Net income (loss) 13,527 (10,925) 28,141 24,605 25,076 65,225 Interest income (2) — — (4) — (125) Interest expense 7,243 6,804 7,372 6,113 6,558 31,645 Depreciation 26,070 23,831 23,684 22,466 22,453 89,743 Writ
Slide 7: Distributable Cash Flow
Distributable Cash Flow Unaudited, USD thousands 3Q 2021 2Q 2021 1Q 2021 4Q 2020 3Q 2020 FY 2020 Net income (loss) 13,527 (10,925) 28,141 24,605 25,076 65,225 Add: Depreciation 26,070 23,831 23,684 22,466 22,453 89,743 Write-down — 29,421 — — — — Other non-cash items; amortization of deferred debt 1
Slide 8: Balance Sheet
Balance Sheet Unaudited, USD thousands At Sept 30, At Dec 31, At Sept 30, At Dec 31, 2021 2020 2021 2020 Current assets: Current liabilities: Cash and cash equivalents 66,605 52,583 Current portion of long-term debt 88,491 184,188 Inventories 2,112 2,652 Derivative liabilities 9,718 10,695 Amounts d
Slide 9: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies At 30 September 2021 Remaining forward contracted revenue of $592 million (exc. options) and average remaining charter of 2.1 years Charterers also have the option to extend these charters by a further 2.7 years on average Charterer's Age
Slide 10: Dropdown Inventory at Sponsor – Potential Acquisitions
Dropdown Inventory at Sponsor – 6 Potential Acquisitions(1) At 30 September 2021 Average contracted charter length of 5.3 years (from charter commencement) Charterers also have the option to extend these charters by a further 7.3 years on average Fixed contract Expected period Vessel 2020 2021 2022
Slide 11: Shuttle Tanker Volumes Projected to Increase
Shuttle Tanker Volumes Projected to Increase 11
Slide 12: Significant Offshore Growth Potential From Low Break Even Projects
Significant Offshore Growth Potential From Low Break Even Projects 12
Slide 13: Growth In Offshore Developments Focused in Core Shuttle Tanker Hubs
Growth In Offshore Developments Focused in Core Shuttle Tanker Hubs 13
Slide 14: ESG Transparency, Reducing Emissions, and Driving Standards
ESG Transparency, Reducing Emissions, and Driving Standards Second annual ESG report published in line with industry best practices and utilizing NSA Guidelines and the framework of the Poseidon Principles.(1) Installation of Ballast Water Treatment system and VOC recovery plant on Bodil Knutsen
Slide 15: Near-term Priorities
Near-term Priorities After safety, our number one priority is the maintenance of our distribution and to do this we are targeting stable cashflows and looking to maximize fleet utilization. We intend to apply the same principles that have served KNOP and our unitholders well for many years. We
Slide 16: Summary
Summary Utilization of 91.9% for scheduled operations. Distributable cashflow of $18.6m, with coverage of 1.03. Paid quarterly distribution of $0.52 for 25th consecutive quarter. $592m of remaining contracted forward revenue, excluding options, at the end of the quarter. No refinance due u
Slide 17: Questions
Questions
Slide 18: Appendices
Appendices 18
Slide 19: 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 20: 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
KNOT Offshore Partners — Q3 2021 Earnings Presentation on 6ix