Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q1 2025 Earnings Presentation
24 slides from Knot Offshore Partners Lp's earnings presentation, May 21, 2025
Slide 1: KNOT Offshore Partners LP 1Q 2025
ee KNOT 1Q 2025 Offshore Partners LP (NYSE:KNOP) SB
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: 1Q 2025 and subsequent: financial headlines
1Q 2025 and subsequent: financial headlines ▪ 1Q 2025 financial headlines include: − Revenues: $84.0m − Operating income: $23.4m − Net income: $7.6m − Adjusted EBITDA: $52.2m − Available liquidity on March 31, 2025: $100.8m, comprising $67.3m in cash and cash equivalents plus $33.5m of undrawn credi
Slide 4: Growing momentum in 2025
Growing momentum in 2025 ▪ Continued tightening in market for shuttle tankers − Brazil: FPSO ordering continues and recent deliveries being made early − North Sea: Johan Castberg production start, following Penguins in February ▪ Contractual backlog expanded (as at March 31, 2025) − $854m of fixed c
Slide 5: 1Q 2025 developments discussed on March 20, 2025
1Q 2025 developments discussed on March 20, 2025 ▪ 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 exe
Slide 6: 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 $0.4m of capitalized financing f
Slide 7: Recent developments
Recent developments ▪ Hilda Knutsen ▪ On March 23, 2025, the Hilda Knutsen began operating under a time charter with Shell for a fixed period of one year. ▪ Addition to potential dropdown inventory ▪ In March 2025, Knutsen NYK entered into a new seven-year time charter contract with Equinor for a ve
Slide 8: Income statement
Income statement Unaudited, USD thousands 1Q 2025 4Q 2024 3Q 2024 2Q 2024 FY 2024 FY 2023 FY 2022 Time charter and bareboat revenues 82,991 84,434 75,682 73,437 306,915 277,084 262,797 Voyage revenues 466 438 124 351 3,628 8,849 4,689 Loss of hire insurance recoveries — 5,892 — 78 5,970 2,840 758 Ot
Slide 9: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 1Q 2025 4Q 2024 3Q 2024 2Q 2024 FY 2024 FY 2023 FY 2022 Net income (loss) 7,581 23,250 (3,773) (12,851) 14,696 (34,328) 58,667 Interest income (748) (1,054) (857) (897) (3,636) (3,468) (822) Interest expense 14,902 16,167 16,857 16,863 67,352 72,070 42,604 De
Slide 10: Balance sheet
Balance sheet Unaudited, USD thousands At Mar 31, At Dec 31, At Mar 31, At Dec 31, 2025 2024 2025 2024 Current assets: Current liabilities: Cash and cash equivalents 67,260 66,933 Current portion of long-term debt 249,437 256,659 Inventories 4,247 3,304 Current lease liabilities 986 1,172 Amounts du
Slide 11: Long-term borrowings
Long-term borrowings Unaudited, USD thousands Original Outstanding at of which Balloon Vessels providing security at March 31, 2025 amount1 March 31, 2025 Current due at Instalments2 maturity3 1. Revolving credit facility with NTT due 25,0001 1,500 — 1,500 Unsecured August 2025 2. Loan due September
Slide 12: Debt maturity profile
Debt maturity profile 600,000 500,000 400,000 US$ (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 Q1 2025 was c.2.2% 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 1Q 2025(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 any contract developments after March 31, 2025, up to the date of the Partnership’s 1Q 2025 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 1Q 2025 & subsequent: ▪ 99.5% utilization for scheduled operations, taking into account the schedule for drydocking of the Raquel Knutsen and Windsor Knutsen (96.9% overall) ▪ Generated: − Revenues: $84.0m − Operating income: $23.4m − Net income: $7.6m − Adjusted EDI
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
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