Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q3 2015 Earnings Presentation
23 slides from Knot Offshore Partners Lp's earnings presentation, Nov 5, 2015
Slide 1: Third Quarter 2015 Results
Third Quarter 2015 Results November 5, 2015
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: Highlights & Recent Events
Highlights & Recent Events For the third quarter of 2015, KNOT Offshore Partners L.P. (the “Partnership”): – Generated revenues of $39.3 million, operating income of $19.7 million and net income of $8.8 million (1) – Generated Adjusted EBITDA of $32.2 million and (1) – Generated Distributable cash
Slide 4: Shuttle Tankers: Niche market where new capacity is based on long term contracts
Shuttle Tankers: Niche market where new capacity is based on long term contracts Specialized Asset Class Standardized Asset Class Shuttle Tankers LNG Conventional Tankers Dry Bulk Carriers Transport from FPSO or Transports crude and Transports to and from Specializes in break bulk Function productio
Slide 5: Ingrid Knutsen
Ingrid Knutsen Ingrid Knutsen Contract detail Charterer: ExxonMobil1 Contract type: TimeCharter Contract end date: February 2024 Option period: 5x1 year Trading area: North Sea Estimated yearly EBITDA: 11.5million Purchase price USD 115 million Sources; Bank debt Ingrid Knutsen ECA tranc
Slide 6: Significant fleet growth since IPO
Significant fleet growth since IPO 6
Slide 7: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies (1) (1) KNOP fleet has average remaining fixed contract duration of 5.8(2) years Additional 2.5 years in average in Charterers option (1) KNOT has guaranteed revenue level to April 2018 (five years from IPO date) (2) Remaining contract life is c
Slide 8: Dropdown inventory: Five potential acquisitions
Dropdown inventory: Five potential acquisitions Fixed contract periods for the dropdown fleet are 5.9(1)years in average Charterers also have the option to extend these charters by 11.2 years on average (1) Remaining contract life is calculated as of 09/30/2015. 8
Slide 9: Petrobras Shuttle Tankers Fleet
Petrobras Shuttle Tankers Fleet UK hell or highwater lease and advanced vessels 9
Slide 10: BG Group Investor update Nov/Dec 2015
BG Group Investor update Nov/Dec 2015 10
Slide 11: Significant demand for new shuttle tanker
Significant demand for new shuttle tanker Fearnleys sees a significant demand for new shuttle tankers going forward – Expects tenders appr 40 vessels to 2020 – Including attrition demand which represent more than half of the demand Corruption scandal in Brazil combined with lower oil prices have
Slide 12: Traditional MLP model: Knutsen NYK is strong growth generator
Traditional MLP model: Knutsen NYK is strong growth generator Overview of Nippon Overview of TSSI Yusen Kaisha (“NYK”) Individual One of the largest private Public Owners Owners Publicly listed company on shipping companies in Norway the Tokyo, Osaka and Nagoya Stock Exchanges Dates back to 19
Slide 13: Knutsen NYK: Industry leader
Knutsen NYK: Industry leader A highly Experienced Operator Knusten NYK is one of two dominating Operators in the Shuttle Tankers Sector Market leading shuttle tanker operator – 28 years of experience in offshore lading and DP operations Backed by two leading sponsors in the industry Fleet expa
Slide 14: Income Statement
Income Statement Unaudited, USD in thousands 3Q 2015 2Q 2015 3Q 2014 Time charter and bareboat revenues 39,281 36,981 34,247 Other income 3 2 18 Total revenues 39,284 36,983 34,265 Vessel operating expenses 5,936 7,164 7,601 Depreciation 12,420 11,560 10,201 General and administrative expenses 1,180
Slide 15: Balance Sheet - Assets
Balance Sheet - Assets Unaudited, USD in thousands At September 30, At December 31, 2015 2014 Current assets: Cash and cash equivalents 67,197 30,746 Other current assets 7,039 5,003 Total current assets 74,236 35,749 Long-term assets: Vessels and equipment: 1,091,060 1,021,857 Goodwill — 6,217 Defe
Slide 16: Balance Sheet - Liabilities and Partners' Equity
Balance Sheet - Liabilities and Partners’ Equity Unaudited, USD in thousands At September 30, At December 31, 2015 2014 Current liabilities: Current portion of long-term debt 42,718 38,718 Derivative liabilities 7,702 7,450 Contract liabilities 1,518 1,518 Other current liabilities 11,207 12,345 Tot
Slide 17: Distributable cashflow
Distributable cashflow Unaudited, USD in thousands 3Q 2015 2Q 2015 3Q 2014 Net income 8,802 6,887 12,563 Add: Depreciation 12,420 11,560 10,201 Goodwill impairment charge — 6,217 — Other non-cash items; deferred costs amortization debt 289 287 308 Unrealized losses from interest rate derivatives and
Slide 18: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD in thousands 3Q 2015 2Q 2015 3Q 2014 Net income 8,802 6,887 12,563 Interest income 0 (2) 0 Interest expense 4,322 4,212 4,014 Depreciation 12,420 11,560 10,201 Goodwill impairment charge — 6,217 — Income tax (benefits) expense — 3 (1) EBITDA 25,724 28,877 26,777 Other
Slide 19: Stable financial performance
Stable financial performance 127 per cent revenue growth 36 per cent growth of distribution vs. MQD 153 per cent growth in adjusted EBITDA Stable and sound cover ratio Margin expansion Sustainable pay-out policy *Adjusted EBITDA is a non GAAP figure, see Appendix for definition ** Cover ratio is
Slide 20: Summary
Summary Solid contract base – Revenue backlog of $ 863.2 million and 1 average contract duration of 5.8 years(1) Modern shuttle tanker fleet, average age 3.8 year vs. industry 2 average of 9.9 year(1) 13 Excellent operating results – 99.6% average utilisation since IPO Large sponser asset base – pro
Slide 21: Thank you, any questions?
KNOT Offshore Partners LP Thank you, any questions ?
Slide 22: Appendix
KNOT Offshore Partners LP Appendix
Slide 23: 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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