Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q3 2014 Earnings Presentation
27 slides from Knot Offshore Partners Lp's earnings presentation, Nov 7, 2014
Slide 1: Third Quarter 2014 Results
Third Quarter 2014 Results November 7, 2014
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
Highligts & Recent Events For the third quarter of 2014, KNOT Offshore Partners L.P. (the “Partnership”): – Generated net income of $12.6 million and operating income of $15.5 million (1) – Generated Adjusted EBITDA of $25.7 million and (1) – Generated distributable cash flow of $14.7 million Ne
Slide 4: Summary unaudited condensed consolidated and combined carve-out statement of operations
Summary unaudited condensed consolidated and combined carve- out statement of operations Three months Three months Three months Vessel operation in line with Ended Ended Ended (USD in thousands) September 30, September 30, June 30, forecast 2014 2013 2014 (unaudited) (unaudited) (unaudited) – 98.4
Slide 5: Summary Unaudited Condensed Consolidated and combined carve-out Balance sheet
Summary Unaudited Condensed Consolidated and combined carve-out Balance sheet At September 30, At December 31, Total unrestricted cash of $44.4 million (USD in thousands) 2014 2013 (unaudited) (Audited) Interest bearing debt at $536.2 million ASSETS Current assets: Cash and cash equivalents 44 4
Slide 6: Distributable cashflow
Distributable cashflow Three months Ended (USD in thousands) September 30, 2014 (unaudited) Net income 12 563 Add: Depreciation and amortization 10 201 Other non-cash items; deferred costs amortization debt 308 Less: Estimated maintenance and replacement capital expenditures (including drydocking re
Slide 7: Adjusted EBITDA
Adjusted EBITDA Three months Ended (USD in thousands) September 30, 2014 (unaudited) Net income 12 563 Interest income 0 Interest expenses 4 014 Depreciation and amortization 10 201 Income tax (benefits) expense -1 EBITDA 26 777 Other financial items (1) -1 100 Adjusted EBITDA 25 677 (1) Other finan
Slide 8: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies Capacity Name (DWT) Charterer Type 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Time Windsor Knutsen 162 362 Charter Time Bodil Knutsen 157 644 Charter Fortaleza Knutsen 106 316 Bareboat Recife Knutsen 105 928 Bareboat Time Carmen Knut
Slide 9: KNOT orders two new shuttle tankers
Knutsen NYK Offshore Tankers (KNOT) orders two new shuttle tankers KNOT enters into new contract for shuttle tankers Vessel Size (dwt) Construction Delivery Employment Term BG I 140 000 dwt Hyundai, South Korea Q4-16 Timecharter BG group Up to 20 years BG II 140 000 dwt Hyundai, South Korea Q1-17 Ti
Slide 10: Dropdown Fleet Overview
Dropdown Fleet Overview Capacity Charter Name (DWT) Charterer Delivery Type Expiration Area(1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Time Ingrid Knutsen 112 000 Q4 2013 nov.23 North Sea Charter Time Hull 574, Cosco 152 000 Q4 2014 sep.24 Brazil Cha
Slide 11: Petrobras production capacity is being ramped up
Petrobras production capacity is being ramped up Source: Petrobras Investor presentation June 2014, 11
Slide 12: BG group Investor update October 2014
BG group Investor update October 2014 Source: BG group Investor Update October 2014, Red outline : KNOT Offshore Partners 12
Slide 13: BG group Investor update October 2014
BG group Investor update October 2014 Source: BG group Investor Update October 2014, Red outline : KNOT Offshore Partners 13
Slide 14: Brazilian deepwater shuttle tanker volumes
Brazilian deepwater shuttle tanker volumes Source: Fearnley November 2014, 14
Slide 15: Break even oil prices Norway, NPD – including interest
Break even oil prices Norway, NPD – including interest Source: Norwegian Petroleum Directorate April 2014, Red line : KNOT Offshore Partners 15
Slide 16: Q3-14: Full effect of the Hilda Knutsen and Torill Knutsen acquisitions
Q3-14: Full effect of the Hilda Knutsen and Torill Knutsen acquisitions KNOT Offshore Partners LP Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Main quarterly figures Revenues $ million 17,3 20,5 22,2 21,8 22,1 34,3 Operating income $ million 7,4 9,4 10,0 9,4 9,6 15,5 Net Income $ million 4,0 6,4 7,9 6,4 2,5
Slide 17: Distribution for Q3-14 will be up 31% from MQD
Distribution for Q3 -14 will be up 31%* from MQD Following the Hilda Knutsen and Torill Knutsen, distribution is increased by 12.6% At the IPO in April 2013, the Partnership expected a distribution growth averaging 10% to 15% annually in the first three years period 17
Slide 18: Thank you, any questions?
KNOT Offshore Partners LP Thank you, any questions ?
Slide 19: A Critical Component of Offshore Oil Infrastructure: Shuttle Tankers
A Critical Component of Offshore Oil Infrastructure: Shuttle Tankers are substituting pipelines in Deep Sea oil production Advantages vs. Pipelines Key Differences vs. Conventional Tankers Superior, more economical alternative with lower Specially designed tankers with sophisticated initial inve
Slide 20: Deepwater Oil Production Is Rapidly Growing
Deepwater Oil Production Is Rapidly Growing Key Themes & Trends New Offshore Oil Field Developments – 2012-2020 (3) Depletion of existing fields, in addition to consumption growth, will drive new exploration Barents Sea Developments Total oil consumption is projected to increase at a long-term i
Slide 21: Demand for Shuttle Tankers Increasing
Demand for Shuttle Tankers Increasing Oil Fields Serviced by Shuttle Tankers Expected to Increase (1) Offshore Oil Field production Millions Barrels 86% of growth driven Daily (Fields operated by shuttle tankers) by Brazil & North Sea 8,00 7,3 • Additional need 7,00 by 2020: 60 6,4 Based on discover
Slide 22: Late cycle and stable margins in the Shuttle tanker industry
Late cycle and stable margins in the Shuttle tanker industry An offshore oil production development is a complex operation that takes years to mature – Normally 5 to 15 years from discovery to first oil Shuttle tankers are late cycle in this industry – Discoveries from wildcat drilling today wil
Slide 23: Excellent visibility in the Shuttle tanker business: Goliat field
Excellent visibility in the Shuttle tanker business: ENI vessels on the Goliat field is an example Goliath field 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Development SEISMIC EXPLORATION DRILLING PDO - Plan for Development and Operation DEVELOPMENT DRILLING FPSO Feed study FP
Slide 24: Shuttle Tankers: Unique Assets in Energy Supply Chain
Shuttle Tankers: Unique Assets in Energy Supply Chain 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 production unit to terminal products
Slide 25: One of the World’s Youngest Fleets with the Latest Technology
One of the World’s Youngest Fleets with the Latest Technology Few vessels are being delivered going forward All Newbuilding vessels are on contract – no speculative ordering Delivery of Brazilian vessels ordered in 2007 has continuosly been delayed The Partnership expects new ordring based o
Slide 26: Knutsen NYK Offshore Tankers: Industry Leader with 2nd Largest Fleet
Knutsen NYK Offshore Tankers: Industry Leader with 2nd Largest Fleet A Highly Experienced Operator Knutsen NYK is One of the Largest Operators in the Shuttle Tanker Sector (1)(2) Market leading shuttle tanker operator with extensive experience – 26 years of experience in offshore buoy loading and
Slide 27: Overview of Sponsors and Partnership Structure
Overview of Sponsors and Partnership Structure 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 1984 NYK TSSI AS
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