Knot Offshore Partners Lp · NYSE:KNOP

Knot Offshore Partners Lp — Q2 2015 Earnings Presentation

22 slides from Knot Offshore Partners Lp's earnings presentation, Aug 13, 2015

  1. Slide 1: Second Quarter 2015 Results

    Second Quarter 2015 Results August 13, 2015

  2. 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

  3. Slide 3: Highlights & Recent Events

    Highlights & Recent Events  For the second quarter of 2015, KNOT Offshore Partners L.P. (the “Partnership”): – Generated revenues of $36.9 million, operating income of $11.1 million and net income of $6.9 million (1) – Generated Adjusted EBITDA of $28.3 million and (1) – Generated Distributable cas

  4. Slide 4: Income Statement

    Income Statement Three months Three months Three months Ended Ended Ended (USD in thousands) June 30, March 31, June 30, 2015 2015 2014 (unaudited) (unaudited) (unaudited) Time charter and bareboat revenues 36,981 36,071 22,116 Other income 2 149 3 Total revenues 36,983 36,220 22,119 Vessel operatin

  5. Slide 5: Balance sheet - Assets

    Balance sheet - Assets At June 30, At December 31, (USD in thousands) 2015 2014 (unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents 71,403 30,746 Other current assets 6,774 5,003 Total current assets 78,177 35,749 Long-term assets: Vessels and equipment 1,103,056 1,021,857 Goodwil

  6. Slide 6: Balance Sheet – Liabilities and Partners’ Equity

    Balance Sheet – Liabilities and Partners’ Equity At June 30, At December 31, (USD in thousands) 2015 2014 (unaudited) (Audited) LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Current installments of long-term debt 42,718 38,718 Derivative liabilities 9,251 7,450 Contract liabilities 1,518 1,5

  7. Slide 7: Distributable cashflow

    Distributable cashflow Three months Three months Three months (USD in thousands) Ended June 30, Ended March 31, Ended June 30, 2015 2015 2014 (unaudited) (unaudited) (unaudited) Net income 6,887 7,186 2,497 Add: Depreciation 11,560 11,400 6,782 Goodwill impairment charge 6,217 Other non-cash items;

  8. Slide 8: Adjusted EBITDA

    Adjusted EBITDA Three months Three months Three months (USD in thousands) Ended June 30, Ended March 31, Ended June 30, 2015 2015 2014 (unaudited) (unaudited) (unaudited) Net income 6,887 7,186 2,497 Interest income (2) (1) (3) Interest expenses 4,212 4,186 3,856 Depreciation 11,560 11,400 6,782 Goo

  9. Slide 9: Stable financial performance, Margin expansion, Sustainable pay-out policy

    Stable financial performance Revenues Adjusted EBITDA* 37.0 36.2 0.510 0.510 34.3 34.7 0.490 0.490 0.435 0.435 0.435 0.435 0.314 28.3 28.8 DCF / average units Distribution pr unit MQD 1.6 26.5 1.56 Cover ratio** 22.2 21.8 22.1 25.7 20.5 1.4 1.36 1.28 1.29 1.32 17.3 1.2 1.22 1.25 1.17 1.06 1 16.8 16.

  10. Slide 10: Dan Sabia Acquisition

    Dan Sabia Acquisition Dan Sabia Contract detail  Charterer: Transpetro  Contract type: Bareboat  Contract end date: January 2023  Trading area: Brazil Dan Sabia Purchase price USD 103 million  Type: Panamax  DWT: 59 000 Financing by:  DP 2 Shuttle tanker Bank debt USD 64.5 million  Built: 20

  11. Slide 11: Significant fleet growth since IPO

    Significant fleet growth since IPO KNOP FLEET DEVELOPMENT 9 SABIA SABIA 8 CISNE CISNE 7 TORILL TORILL 6 HILDA HILDA 5 CARMEN CARMEN 4 RECIFE RECIFE 3 FORTALEZA FORTALEZA 2 BODIL BODIL 1 WINDSOR WINDSOR IPO Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 CURRENT KNUTSEN NYK DROPDOWN INVENTORY 7

  12. Slide 12: Long-term Contracts Backed by Leading Energy Companies

    Long-term Contracts Backed by Leading Energy Companies Name Area 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (1) Windsor Knutsen Brazil Bodil Knutsen(1) N. Sea Fortaleza Knutsen Brazil Recife Knutsen Brazil Carmen Knutsen Brazil Hilda Knutsen N. Sea Torill Knutsen N. Sea Dan Cisne Brazil

  13. Slide 13: Dropdown inventory: Six potential acquisitions

    Dropdown inventory: Six potential acquisitions Name Area 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Ingrid Knutsen N. Sea Raquel Knutsen Brazil H2816 Brazil H2817 Brazil H686 Brazil H2818 Brazil Fixed contract periods for the dropdown fleet are 6.4 years in avera

  14. Slide 14: 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 mort than half of the demand  Corruption scandal in Brazil combined with lower oil prices have

  15. Slide 15: 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

  16. Slide 16: 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 with experience – 28 years of experience in offshore lading and DP operations  Backed by two leading spoonsors in the indu

  17. Slide 17: KNOP has very good access to bank financing

    KNOP has very good access to bank financing Supportive bank group Geographically diversified bank group  KNOP has eight supportive banks that are financing the 3% partnership through three different lending facilities 9% 22% – USD 380m Secured Term Loan Facilities for the vessels Fortaleza, Recife,

  18. Slide 18: Investment highlights

    Investment highlights  Modern ( average age 3.8 years1) fleet, equipped with latest technology  Long term contract (remaining duration 5.2 years1) with oil majors 1 Pure-play shuttle tanker  Operational and technical expertise  Solid contract base – Revenue backlog of $ 672.3 million1  99.6 % u

  19. Slide 19: Summary

    Summary Solid contract base – Revenue backlog of $ 672.3 million and 1 average contract duration of 5.2 years(1) Modern shuttle tanker fleet, average age 3.8 year vs. industry 2 average of 9.7 year(2) 13 Excellent operating results – 99.6% average utilisation since IPO Large sponser asset base – pro

  20. Slide 20: Thank you, any questions ?

    KNOT Offshore Partners LP Thank you, any questions ?

  21. Slide 21: Appendix

    KNOT Offshore Partners LP Appendix

  22. Slide 22: 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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