Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q1 2016 Earnings Presentation
20 slides from Knot Offshore Partners Lp's earnings presentation, May 11, 2016
Slide 1: First Quarter 2016 Results
First Quarter 2016 Results May 11, 2016
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: Financial Highlights
Financial Highlights Generated total revenues of $42.0 million. Generated operating income of $19.2 million and net income of $10.7 million. Generated Adjusted EBITDA(1) of $33.1 million. Generated distributable cash flow(1) of $17.9, with a coverage ratio of 1.2 – impacted by Bodil Knutsen
Slide 4: Dry Docking on time and budget
Dry Docking on time and budget Bodil Knutsen – Completed its first special survey dry dock on time and budget in February Bareboat vessels – Petrobras Transporte – Fortaleza completed its first special survey dry dock in April – During the year Recife Knutsen and Dan Cisne will commence their fi
Slide 5: Goliat field – First oil field in the Barents Sea
Goliat field – First oil field in the Barents Sea Torill Knutsen and Hilda Knutsen are two of three arctic shuttle tankers specially built to operate Goliat field In March first oil was loaded on to Hilda Knutsen – Estimated lifetime of the field is 15 years – Estimated 178 million recoverable b
Slide 6: Income Statement
Income Statement Unaudited, USD in thousands 1Q 2016 4Q 2015 1Q 2015 FY 2015 Time charter and bareboat revenues 41,826 42,417 36,071 154,750 Other income 200 120 149 274 Total revenues 42,026 42,537 36,220 155,024 Vessel operating expenses 7,647 7,636 6,807 27,543 Depreciation 13,892 13,464 11,400 4
Slide 7: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD in thousands 1Q 2016 4Q 2015 1Q 2015 FY2015 Net income 10,663 17,567 7,186 40,443 Interest income (2) (5) (1) (8) Interest expense 5,029 4,731 4,186 17,451 Depreciation 13,892 13,464 11,400 48,844 Goodwill impairment charge — — — 6,217 Income tax (benefits) expense 3 (
Slide 8: Distributable cash flow
Distributable cash flow Unaudited, USD in thousands 1Q 2016 4Q 2015 1Q 2015 FY2015 Net income 10,663 17,567 7,186 40,442 Add: Depreciation 13,892 13,464 11,400 48,844 Goodwill impairment charge — — — 6,217 Other non-cash items; deferred costs amortization debt 287 289 284 1,149 Unrealized losses fro
Slide 9: Balance sheet
Balance sheet At March 31, At December 31, At March 31, At December 31, Unaudited, USD in thousands 2016 2015 2016 2015 Current assets: Current liabilities Cash and cash equivalents 28,782 23,573 Current portion of long-term debt 48,535 48,535 Derivative assets 243 — Derivative liabilities 3,884 5,1
Slide 10: Stable operational performance results in stable financial performance
Stable operational performance results in stable financial performane UTILIZATION (%) REVENUE (USD million) Average of 99.7 % since IPO 27% CAGR 42,5 42,0 39,3 100% 99,7% 99,7% 99,9% 100% 99,6% 99,9%99,8 % since IPO 36,2 37 99,2% 99,3% 99,4% 98,9% 34,3 34,7 20,5 22,2 21,8 22,1 17,3 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Unit Price Impacted More than Alerian Index by falling Oil Price
Unit Price Impacted More than Alerian Index by falling Oil Price KNOP V AMLP YIELD AND UNIT PRICE $35 20% $30 16% Unit Price/WTI Rebased $25 e 12% $20 $15 8% $10 4% $5 $0 0% 01.jun.14 01.jun.15 01.sep.15 01.jan.14 01.sep.14 01.des.14 01.jan.15 01.des.15 01.jan.16 01.mar.14 01.aug.14 01.mar.15 01.aug
Slide 12: Earnings Per Unit of KNOP Climbing Throughout Downturn
Earnings Per Unit of KNOP Climbing Throughout Downturn $120 6,0 $100 5,0 $80 4,0 $60 3,0 WTI $40 2,0 $20 1,0 $0 0,0 01.sep.15 01.sep.14 01.des.14 01.des.15 01.jan.14 01.mar.14 01.jan.15 01.mar.15 01.jan.16 01.mar.16 01.jun.14 01.aug.14 01.aug.15 01.feb.14 01.feb.15 01.jun.15 01.feb.16 01.nov.14 01.n
Slide 13: Low Oil Price - more cost focus
Low Oil Price - more cost focus Castberg Barents Sea pipeline verses shuttle tanker Fearnleys estimate major cost savings in lower for longer oil price environment when using shuttle tankers 13
Slide 14: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies Name Area 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 (1) Windsor Knutsen Brazil (1) Bodil Knutsen N. Sea Fortaleza Knutsen Brazil Recife Knutsen Brazil Carmen Knutsen Brazil Hilda Knutsen N. Sea Torill Knutsen N.
Slide 15: Significant fleet growth since IPO
Significant fleet growth since IPO 15
Slide 16: Dropdown inventory: Five potential acquisitions
Dropdown inventory: Five potential acquisitions Name Area 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Raquel Knutsen Brazil H2816 Brazil H2817 Brazil H686 Brazil H2818 Brazil Fixed contract periods for the dropdown fleet are 5.9(1)years on average Charterers also have
Slide 17: Summary
Summary Solid contract base – Revenue backlog of $ 790 million and 1 average contract duration of 5.3 years(1) Modern shuttle tanker fleet, average age 4.3 years vs. industry 2 average of 11.2 years excluding KNOP fleet(1) 13 Excellent operating results – 99.7%(2) average utilisation since IPO Large
Slide 18: Thank you, any questions ?
KNOT Offshore Partners LP Thank you, any questions ?
Slide 19: Appendix
KNOT Offshore Partners LP Appendix
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA refers to earnings before interest, other financial items, taxes, non-controlling interest, depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure used by investors to measure our performance. The Partnership believe
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