Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q2 2022 Earnings Presentation
19 slides from Knot Offshore Partners Lp's earnings presentation, Aug 25, 2022
Slide 1: Second Quarter 2022
Second Quarter 2022 August 25, 2022 (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 2022 and Subsequent Highlights
Second Quarter 2022 and Subsequent Highlights – 1 Announced cash distribution of $0.52 per common unit for the 28th consecutive time at this level under 1099 structure, and the 37th consecutive distribution overall since the Partnership first listed in 2013. Fleet operated with 100% utilization
Slide 4: Second Quarter 2022 and Subsequent Highlights
Second Quarter 2022 and Subsequent Highlights – 2 And as previously reported in the first quarter: In April 2022 Anna Knutsen commenced on a charter with TotalEnergies for two years, with options for the charterer to extend the time charter by up to three further one-year periods We agreed wit
Slide 5: Income Statement
Income Statement Unaudited, USD thousands 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 FY 2021 Time charter and bareboat revenues 63,788 65,187 70,637 66,559 66,513 269,306 Loss of hire insurance recoveries — — 1,154 17 4,397 11,450 Other income 171 9 342 3 27 373 Total revenues 63,959 65,196 72,133 66,5
Slide 6: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 FY 2021 Net income (loss) 9,888 26,780 23,133 13,527 (10,925) 53,876 Interest income (59) (2) — (2) — (2) Interest expense 8,301 6,725 6,646 7,243 6,804 28,065 Depreciation 26,059 25,937 25,974 26,070 23,831 99,559 Impa
Slide 7: Balance Sheet
Balance Sheet Unaudited, USD thousands At Jun 30, At Dec 31, At Jun 30, At Dec 31, 2022 2021 2022 2021 Current assets: Current liabilities: Cash and cash equivalents 88,474 62,293 Current portion of long-term debt 90,522 88,578 Inventories 3,647 3,306 Derivative liabilities 624 6,754 Amounts due fro
Slide 8: Distributable Cash Flow
Distributable Cash Flow Unaudited, USD thousands 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 FY 2021 Net income (loss) 9,888 26,780 23,133 13,527 (10,925) 53,876 Add: Depreciation 26,059 25,937 25,974 26,070 23,831 99,559 Impairment — — — — 29,421 29,421 Other non-cash items; amortization of deferred 85
Slide 9: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies Contracted period Charterer’s option Next anticipated drydock, at x vessel age (years) Ship operates primarily in the * North Sea Remaining forward contracted revenue of $487 million (excluding options) Average remaining firm charters of
Slide 10: Dropdown Inventory at Sponsor – Potential Acquisitions
Dropdown Inventory at Sponsor – Potential Acquisitions Average firm contracted charter length of 5.3 years (from charter commencement), with charterers’ options to extend by a further 7.3 years on average. Contracted period Charterer’s option x Next anticipated drydock, at vessel age (years) Notes:
Slide 11: FPSO Ordering and Deliveries Continuing
FPSO Ordering and Deliveries Continuing FPSOs, delivery schedules for which were delayed due to early-pandemic capex reductions, have seen overall timelines normalize and deliveries pick up pace, particularly in Brazil Current high oil prices (vs. project-level break-evens at or below $35/bbl) a
Slide 12: Shuttle Tanker Orderbook Sharply Decreasing
Shuttle Tanker Orderbook Sharply Decreasing Built Owner Vessel Name Contract Trading In Following earlier capex program delays Type Area service across the energy industry and increasing 2021 ALTERA ALTERA WAVE COA North Sea Y newbuild prices, only 1 new shuttle tanker AET EAGLE PILAR TC Brazil Y
Slide 13: Near-term Priorities
Near-term Priorities Continue to focus on safety as our number one priority Maintain high scheduled operational utilization in line with our historic track record Ensure the remaining drydocks in 2022 are successfully closed out Keep close dialogue with our customers to ensure we can respond
Slide 14: Summary
Summary Utilization of 100% for scheduled operations. Distributable cashflow of $9.4 million following the several drydocks in the quarter, resulting in coverage of 0.51. Paid quarterly distribution of $0.52 for 28th consecutive quarter. $487m of remaining contracted forward revenue, excludi
Slide 15: Questions
Questions 15
Slide 16: Appendices
Appendices 16
Slide 17: Appendix A – KNOP Attributes – Our Investment Case
Appendix A – 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 a
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 – Petrobras FPSO Projects
Appendix C – Petrobras FPSO Projects Source: November 30 , 2021 – Petrobras Day presentation 19
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