Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q4 2023 Earnings Presentation
20 slides from Knot Offshore Partners Lp's earnings presentation, Feb 27, 2024
Slide 1: 4Q 2023 Earnings Presentation
4Q 2023 February 27, 2024 (NYSE:KNOP)
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: 4Q 2023 and subsequent: financial headlines
4Q 2023 and subsequent: financial headlines ▪ 4Q 2023 financial headlines include: − Revenues: $73.0m − Operating income: $18.1m − Net income: loss of $5.3m (after accounting for an unrealized (i.e. non-cash) loss of $8.9m on derivatives) − Adjusted EDITDA: $45.7m − Available liquidity on December 3
Slide 4: 4Q 2023 and subsequent: contractual developments
4Q 2023 and subsequent: contractual developments In Brazil: ▪ Carmen Knutsen: Repsol exercised a 1-year extension option, commencing in January 2024. Repsol hold a further 1 year’s option which, if exercised, would see Carmen Knutsen employed through to January 2026 ▪ Dan Sabia: Transpetro extended
Slide 5: 4Q 2023 and subsequent: outlook
4Q 2023 and subsequent: outlook ▪ Net-demand outlook remains positive − Faster pace of new offshore oil production implied by continuing FPSO ordering for shuttle tanker-serviced fields − Significant new offshore oil production volumes coming online − Supports vessel demand and charter rates further
Slide 6: Income statement
Income statement Unaudited, USD thousands 4Q 2023 3Q 2023 2Q 2023 4Q 2022 FY 2023 FY 2022 FY 2021 Time charter and bareboat revenues 72,039 72,188 69,924 66,084 277,084 262,797 269,306 Voyage revenues - 10 1,585 4,689 8,849 4,689 — Loss of hire insurance recoveries 505 - 1,424 758 2,840 758 11,450 O
Slide 7: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 4Q 2023 3Q 2023 2Q 2023 4Q 2022 FY 2023 FY 2022 FY 2021 Net income (loss) (5,282) 12,641 (40,390) 6,207 (34,328) 58,667 53,876 Interest income (992) (932) (861) (472) (3,468) (822) (2) Interest expense 18,101 18,493 18,107 15,358 72,070 42,604 28,065 Deprecia
Slide 8: Balance sheet
Balance sheet Unaudited, USD thousands At Dec 31, At Dec 31, At Dec 31, At Dec 31, 2023 2022 2023 2022 Current assets: Current liabilities: Cash and cash equivalents 63,921 47,579 Current portion of long-term debt 151,796 369,787 Inventories 3,696 5,759 Contract liabilities — 651 Amounts due from re
Slide 9: Long-term borrowings
Long-term borrowings Unaudited, USD thousands Original Outstanding at of which Balloon Vessels providing security amount1 December 31, Current due at 2023 Instalments2 maturity3 1. Loan due January 20244 172,500 10,370 3,900 6,470 Dan Sabia 2. Loan due May 2024 100,000 60,000 3,077 56,923 Hilda 3. R
Slide 10: Forward contracted revenue backed by leading energy companies
Forward contracted revenue backed by leading energy companies 4Q 2023(1) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Shell Insurance PetroChina Shell Oil major . . 18 Windsor 15 20 Contracted period Equinor KNOT Equinor Charterer’s option Bodil * 10 . 15 . Transpetro (Bareboat charter) Transpe
Slide 11: Forward contract coverage
Forward contract coverage1 Focus remains on growing utilisation and forward visibility in 2024 100% 80% 60% 40% 20% 0% Q1 2024 Q2 2024 Q3 2024 Q4 2024 %Fixed Contract %Charterer's Option %Available / Spot Market (1) This chart includes contract developments after December 31, 2023, up to the date of
Slide 12: Dropdown inventory held by Sponsor – potential future acquisitions
Dropdown inventory held by Sponsor – potential future acquisitions 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 t
Slide 13: Continued growth in oil production outlook in Brazil
Continued growth in oil production outlook in Brazil Source: Petrobras Strategic Plan 2024-2028, announcement on November 23, 2023 https://agencia.petrobras.com.br/en/institutional/petrobras-unveils-strategic-plan-2024-2028-featuring-investments-of-usd-102-billion-23-11-2023/ www.knotoffshorepartner
Slide 14: FPSO ordering and deliveries continuing at pace in Brazil
FPSO ordering and deliveries continuing at pace in Brazil Source: Petrobras Strategic Plan 2024-2028, announcement on November 23, 2023 https://agencia.petrobras.com.br/en/institutional/petrobras-unveils-strategic-plan-2024-2028-featuring-investments-of-usd-102-billion-23-11-2023/ www.knotoffshorepa
Slide 15: 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 16: 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 17: Summary and near-term priorities
Summary and near-term priorities 4Q 2023 & subsequent: ▪ Utilization − 99.6% for scheduled operations − 96.0% given the scheduled drydockings of Torill Knutsen and Ingrid Knutsen ▪ Generated − Revenues: $73.0m − Operating income: $18.1m − Net income: loss of $5.3m − Adjusted EDITDA: $45.7m ▪ Secured
Slide 18: Questions
Questions www.knotoffshorepartners.com 18
Slide 19: Appendix
Appendix www.knotoffshorepartners.com 19
Slide 20: 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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