Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q3 2019 Earnings Presentation
15 slides from Knot Offshore Partners Lp's earnings presentation, Nov 21, 2019
Slide 1: Third Quarter 2019 Results
Third Quarter 2019 Results November 21, 2019
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. This presentation contains certain forward-looking statements concerning future events and KNOT Offshore Partners LP’s (“KNOP”) operations, performance and finan
Slide 3: Q3 2019 Financial Highlights and Recent Events
Q3 2019 Financial Highlights and Recent Events Another strong operational and financial quarter: – Generated total revenues of $71.0 million, operating income of $32.4 million and net income of $14.1 million. – Generated quarterly Adjusted EBITDA(1) of $54.8 million. – Generated distributable cash f
Slide 4: Income Statement
Income Statement Unaudited, USD thousands 3Q 2019 2Q 2019 3Q 2018 FY 2018 Time charter and bareboat revenues 70,983 70,908 70,706 278,191 Loss of hire insurance recoveries — — — 450 Other income 26 14 12 815 Total revenues 71,009 70,922 70,718 279,456 Vessel operating expenses 14,971 15,301 15,289 5
Slide 5: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 3Q 2019 2Q 2019 3Q 2018 FY 2018 Net income 14,148 8,176 20,931 82,165 Interest income (225) (233) (196) (739) Interest expense 12,459 13,186 13,472 49,956 Depreciation 22,430 22,429 22,400 88,756 Income tax (benefits) expense — 3 9 (2) EBITDA(1) 48,812 43,561
Slide 6: Distributable Cash Flow
Distributable Cash Flow Unaudited, USD thousands 3Q 2019 2Q 2019 3Q 2018 FY 2018 Net income 14,148 8,176 20,931 82,165 Add: Depreciation 22,430 22,429 22,400 88,756 Other non-cash items; deferred costs amortization 656 658 1,234 3,188 debt Unrealized losses from interest rate derivatives and 6,512 1
Slide 7: Balance Sheet
Balance Sheet At Sept 30, At Dec 31, At Sept 30, At Dec 31, Unaudited, USD thousands 2019 2018 2019 2018 Current assets: Current liabilities: Cash and cash equivalents 44,847 41,712 Current portion of long-term 83,319 106,926 debt Inventories 2,273 2,443 Derivative liabilities 1,519 1,740 Derivative
Slide 8: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies (1) Fixed contract Option period KNOP fleet has an average remaining fixed contract duration of 3.1(2) years Plus an additional 4.3 years on average in Charterers’ option (1) Time charter with Shell is suspended for 10-12 months, in the suspensi
Slide 9: Dropdown Inventory: Three Potential Acquisitions
Dropdown Inventory: Three Potential Acquisitions(1) Name 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Hull 3114 Hull 3115 (2) Hull 687 Yard Fixed contract Option period Fixed contract periods for the dropdown fleet are 6.0 years on average Charterers also have the option to exten
Slide 10: Attractive Shuttle Tanker outlook in Brazil
Attractive Shuttle Tanker outlook in Brazil Source: Rystad Energy 10
Slide 11: Summary
Summary Another quarter of strong operational performance with 99.7% utilization. Consistent financial performance backed by strong charterers. Distributable cashflow (1) of $28.0m, with coverage of 1.55x. Strong outlook for future growth in the shuttle tanker business. Attractive value pr
Slide 12: Shuttle Tanker Market Overview
Shuttle Tanker Market Overview Questions 12
Slide 13: Appendix
Appendix Appendix
Slide 14: Appendix - Non-GAAP Financial Measures
Appendix - 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
Slide 15: Appendix - Non-GAAP Financial Measures
Appendix - Non-GAAP Financial Measures Distributable Cash Flow Distributable cash flow represents net income adjusted for depreciation and amortization, unrealized gains and los ses fro m derivatives, unrealized foreign exchange gains and losses, distributions on the Series A Preferred Units, goodwi
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