Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q4 2024 Earnings Presentation
24 slides from Knot Offshore Partners Lp's earnings presentation, Mar 20, 2025
Slide 1: 4Q 2024 KNOT Offshore Partners LP
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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: 4Q 2024 and subsequent: financial headlines
4Q 2024 and subsequent: financial headlines ▪ 4Q 2024 financial headlines include: − Revenues: $91.3m − Operating income: $34.7m − Net income: $23.3m − Adjusted EDITDA: $63.1m − Available liquidity on December 31, 2024: $90.4m, comprising $66.9m in cash and cash equivalents plus $23.5m of undrawn cr
Slide 4: March 2025 momentum
March 2025 momentum ▪ Continued tightening in market for shuttle tankers − Brazil: FPSO ordering continues and recent deliveries being made early − North Sea: Penguins production start, with Johan Castberg due ▪ Contractual backlog expanded (as at December 31, 2024) − $870m of fixed contracts averag
Slide 5: 4Q 2024 developments discussed on December 5, 2024
4Q 2024 developments discussed on December 5, 2024 ▪ Ingrid Knutsen ▪ On October 1, 2024 the Ingrid Knutsen began operating under a time charter with Eni for a fixed period of two years plus two charterer’s options each of one year. ▪ Hilda Knutsen ▪ On October 14, 2024 a time charter for the Hilda
Slide 6: Recent developments
Recent developments ▪ Torill Knutsen ▪ In January 2025, the final insurance claim payment was received in respect of repair work and loss of hire, which had arisen from the breakage of a generator rotor in January 2024 ▪ Brasil Knutsen ▪ On January 21, 2025, Petrorio exercised their option to extend
Slide 7: Dan Sabia sale / Live Knutsen purchase
Dan Sabia sale / Live Knutsen purchase ▪ On March 3, 2025, we: ▪ purchased the Live Knutsen from Knutsen NYK; and ▪ sold the Dan Sabia to Knutsen NYK ▪ Key terms ▪ Purchase price for the Live Knutsen was $100m less $73m of net outstanding debt ($73.4m gross debt less $0.4m of capitalized financing f
Slide 8: Income statement
Income statement Unaudited, USD thousands 4Q 2024 3Q 2024 2Q 2024 4Q 2024 FY 2023 FY 2022 Time charter and bareboat 84,434 75,682 73,437 72,039 277,084 262,797 revenues Voyage revenues 438 124 351 — 8,849 4,689 Loss of hire insurance recoveries 5,892 — 78 505 2,840 758 Other income 491 1,189 554 485
Slide 9: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 4Q 2024 3Q 2024 2Q 2024 4Q 2023 FY 2023 FY 2022 Net income (loss) 23,250 (3,773) (12,851) (5,282) (34,328) 58,667 Interest income (1,054) (857) (897) (992) (3,468) (822) Interest expense 16,167 16,857 16,863 18,101 72,070 42,604 Depreciation 28,425 27,902 27,
Slide 10: Balance sheet
Balance sheet Unaudited, USD thousands At Dec 31, At Dec 31, At Dec 31, At Dec 31, 2024 2023 2024 2023 Current assets: Current liabilities: Cash and cash equivalents 66,933 63,921 Current portion of long-term debt 256,659 98,960 Inventories 3,304 3,696 Current lease liabilities 1,172 982 Amounts due
Slide 11: Long-term borrowings
Long-term borrowings Unaudited, USD thousands Original Outstanding at of which Balloon Vessels providing security at December 31, amount1 December 31, Current due at 2024 2024 Instalments2 maturity3 1. Revolving credit facility with NTT due 25,0001 1,500 1,500 Unsecured August 2025 2. Loan due Septe
Slide 12: Debt maturity profile
Debt maturity profile 600,000 500,000 400,000 US$ (000) 300,000 200,000 100,000 0 2025 2026 2027 2028 2029 2030+ Period Repayment Balloon Repayment Sale and Leaseback ▪ Average margin paid on the Partnership’s outstanding debt during Q4 2024 was c.2.3% over SOFR. ▪ Access to wide pool of lenders, at
Slide 13: Forward contracted revenue backed by leading energy companies
Forward contracted revenue backed by leading energy companies 4Q 2024(1) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Shell InsurancePetroChina Shell ExxonMobil . Windsor 15 . 18 20 Contracted period Equinor KNOT . Equinor Bodil * 10 . 15 . 18 Charterer’s option Transpetro (BBC) Trans
Slide 14: Forward contract coverage
Forward contract coverage1 100% 80% 60% 40% 20% 0% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 %Fixed Contract %Charterer's Option %Available / Spot Market (1) This chart includes contract developments after December 31, 2024, up to the date of the Partnership’s 4Q 2024 Earnings release.
Slide 15: Dropdown inventory held/ordered by Sponsor as at reporting date
Dropdown inventory held/ordered by Sponsor as at reporting date The acquisition by KNOP of any dropdown vessels in the future is subject to approval of the Partnership’s independent Conflicts Committee, as well as the board of directors of each of KNOP and Knutsen NYK. There can be no assurance that
Slide 16: Continued growth in oil production outlook in Brazil
Continued growth in oil production outlook in Brazil Source: Petrobras Strategic Plan 2025-2029, announcement on November 22, 2024 https://petrobras.com.br/en/quem-somos/estrategia www.knotoffshorepartners.com www.knotoffshorepartners.com 16
Slide 17: Petrobras' outlook for 2025
Petrobras’ outlook for 2025 Source: Petrobras’ results presentation for 2024 www.knotoffshorepartners.com www.knotoffshorepartners.com 17
Slide 18: FPSO ordering and deliveries continuing at pace in Brazil
FPSO ordering and deliveries continuing at pace in Brazil Source: Petrobras Strategic Plan 2025-2029, announcement on November 22, 2024 https://petrobras.com.br/en/quem-somos/estrategia www.knotoffshorepartners.com www.knotoffshorepartners.com 18
Slide 19: KNOP attributes – US investor considerations
KNOP attributes – US investor considerations ▪ US investors are directed to the Investors FAQs and US Tax Information sections of KNOP’s website: − https://www.knotoffshorepartners.com/investors/investor-faqs/ − https://www.knotoffshorepartners.com/investors/stock-info/us-tax- information/default.as
Slide 20: KNOP attributes – our investment case
KNOP attributes – our investment case ▪ We are a market leader in the operation of shuttle tankers and our Sponsor has more than 40 years’ experience and investment in this business. ▪ Specialist vessels are critical infrastructure with limited replacement risk required to deliver oil production fro
Slide 21: Summary and near-term priorities
Summary and near-term priorities 4Q 2024 & subsequent: ▪ Utilization of 98.3%, with no scheduled drydockings during the period ▪ Generated: − Revenues: $91.3m − Operating income: $34.7m − Net income: $23.3m − Adjusted EDITDA: $63.1m ▪ Secured additional fixed contract periods for Hilda Knutsen, Carm
Slide 22: Questions
Questions www.knotoffshorepartners.com www.knotoffshorepartners.com 22
Slide 23: Appendix
Appendix www.knotoffshorepartners.com www.knotoffshorepartners.com 23
Slide 24: Appendix – Non-GAAP financial measures
Appendix – Non-GAAP financial measures Adjusted EBITDA Adjusted EBITDA refers to earnings before interest, depreciation, taxes, impairments and other financial items (including other finance expenses, realised and unrealised gain (loss) on derivative instruments and net gain (loss) on foreign curren
KNOT Offshore Partners — Q4 2024 Earnings Presentation on 6ix