Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q2 2021 Earnings Presentation
20 slides from Knot Offshore Partners Lp's earnings presentation, Aug 26, 2021
Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results August 26, 2021 1
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 2021 and Subsequent Highlights - 1
Second Quarter 2021 and Subsequent Highlights - 1 Generated total revenues of $70.9 million, operating loss of $1.2 million and net loss of $10.9 million after recording a $29.4 million non-cash write-down in respect of the Windsor Knutsen. When adjusted to remove the impact of the non-cash write-
Slide 4: Second Quarter 2021 and Subsequent Highlights - 2
Second Quarter 2021 and Subsequent Highlights - 2 Windsor Knutsen In December 2020, the Windsor Knutsen reported a crack in its main engine block which has now been fixed and the vessel returned to service on June 10, 2021. The Partnership’s insurance is covering the cost of repairs (other than a
Slide 5: Second Quarter 2021 and Subsequent Highlights - 3
Second Quarter 2021 and Subsequent Highlights - 3 Vigdis Knutsen During July 2021, the Vigdis Knutsen was off-hire for 17 days due to an outbreak of COVID-19 on board the vessel which was quickly contained with no serious ill-health caused to any persons affected. Tordis Knutsen The Tordis Knuts
Slide 6: Income Statement
Income Statement Unaudited, USD thousands 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 FY 2020 Time charter and bareboat revenues 66,513 65,598 69,864 71,241 70,250 278,581 Loss of hire insurance recoveries 4,397 5,882 — — — — Other income 27 1 (5) 39 9 641 Total revenues 70,937 71,481 69,859 71,280 70,2
Slide 7: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 FY 2020 Net income (loss) (10,925) 28,141 24,605 25,076 21,683 65,225 Interest income — — (4) — (3) (125) Interest expense 6,804 7,372 6,113 6,558 8,512 31,645 Depreciation 23,831 23,684 22,466 22,453 22,451 89,743 Writ
Slide 8: Distributable Cash Flow
Distributable Cash Flow Unaudited, USD thousands 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 FY 2020 Net income (loss) (10,925) 28,141 24,605 25,076 21,683 65,225 Add: Depreciation 23,831 23,684 22,466 22,453 22,451 89,743 Write-down 29,421 — — — — — Other non-cash items; amortization of deferred debt 6
Slide 9: Balance Sheet
Balance Sheet Unaudited, USD thousands At Jun 30, At Dec 31, At Jun 30, At Dec 31, 2021 2020 2021 2020 Current assets: Current liabilities: Cash and cash equivalents 51,589 52,583 Current portion of long-term debt 351,370 184,188 Inventories 1,762 2,652 Derivative liabilities 9,984 10,695 Amounts du
Slide 10: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies At June 30, 2021: Remaining forward contracted revenue of $642million (exc. options) and average remaining charter of 2.3 years Charterers also have the option to extend these charters by a further 2.8 years on average Charterer's Age Cur
Slide 11: Dropdown Inventory at Sponsor – Potential Acquisitions
Dropdown Inventory at Sponsor – 6 Potential Acquisitions(1) At June 30, 2021: Average contracted charter length of 5.3 years Charterers also have the option to extend these charters by a further 7.3 years on average Fixed contract Expected period Vessel delivery 2020 2021 2022 2023 2024 2025 Charter
Slide 12: Scheduled Start-ups to Outpace Declines
Scheduled Start-ups to Outpace Declines Oil production in shuttle tanker-serviced fields High levels of already contracted and further expected FPSO (1) activity in Brazil support the premise that projects will go ahead, and shuttle tanker demand will increase. Petrobras and Equinor, for example
Slide 13: Oil Production Growth in Brazil
Oil Production Growth in Brazil “The Búzios field, discovered in 2010, is the largest deep- water oil field in the world. It is a world-class asset, with substantial reserves, low risk, and low lifting cost. It should reach the end of the decade with daily production above 2 million barrels of oil e
Slide 14: ESG: Improving Efficiency, Reducing Emissions, and Driving Progress
ESG: Improving Efficiency, Reducing Emissions, and Driving Progress KNOP is dedicated to upholding Environmental, Social, and Governmental (“ESG”) principles and driving progress in the shipping industry and beyond. Second annual ESG report to be published shortly, providing further transparency
Slide 15: Near-term Priorities
Near-term Priorities Continue to operate our vessels safely and efficiently and ensure the health and safety of our crew and employees. Target stability in our results and in our distribution. Focus efforts on securing new near-term charter contract(s) for the Bodil Knutsen. Continue to cons
Slide 16: Summary
Summary Another strong and stable quarter with utilization of 96.9% for scheduled operations (if Windsor Knutsen included). Distributable cashflow of $24.0m, with coverage of 1.32. Paid quarterly distribution of $0.52 for 24th consecutive quarter. $642m of remaining contracted forward revenu
Slide 17: Questions
Questions
Slide 18: Appendix
Appendix 18
Slide 19: KNOP Attributes
KNOP Attributes We are a market leader in the operation of shuttle tankers with more than 30 years continuous experience and investment in this business. 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 repor
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
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