Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q1 2023 Earnings Presentation
20 slides from Knot Offshore Partners Lp's earnings presentation, May 26, 2023
Slide 1: First Quarter 2023
First Quarter 2023 May 26, 2023 (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: First Quarter 2023 and Subsequent Highlights – 1
First Quarter 2023 and Subsequent Highlights – 1 Announced cash distribution of $0.026 per common unit under 1099 structure, paid in May 2023, the 40th consecutive quarterly distribution overall since the Partnership first listed in 2013. Fleet operated with 100% utilization for scheduled operat
Slide 4: First Quarter 2023 and Subsequent Highlights – 2
First Quarter 2023 and Subsequent Highlights – 2 The Windsor Knutsen was delivered to Shell on January 11, 2023, commencing on a fixed one-year charter, with Shell also having an option to extend the charter by one further year. The Bodil Knutsen commenced a time charter contract with a subsidia
Slide 5: First Quarter 2023 and Subsequent Highlights – 3
First Quarter 2023 and Subsequent Highlights – 3 At March 31, 2023: the Partnership had $52.4 million in available liquidity; $688 million of remaining contracted forward revenue, excluding charterer’s options but including the new charter for the Recife Knutsen which was signed on April 11, 2
Slide 6: Income Statement
Income Statement Unaudited, USD thousands 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 FY 2022 FY 2021 Time charter and bareboat revenues 62,933 66,084 67,738 63,788 65,187 262,797 269,306 Voyage revenues 7,254 4,689 — — — 4,689 — Loss of hire insurance recoveries 911 758 — — — 758 11,450 Other income 82
Slide 7: Balance Sheet
Balance Sheet Unaudited, USD thousands At Mar 31, At Dec 31, At Mar 31, At Dec 31, 2023 2022 2023 2022 Current assets: Current liabilities: Cash and cash equivalents 52,351 47,579 Current portion of long-term debt 373,033 369,787 Inventories 3,501 5,759 Derivative liabilities 44 — Amounts due from r
Slide 8: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 FY 2022 FY 2021 Net income (1,297) 6,027 15,972 9,888 26,780 58,667 53,876 Interest income (683) (472) (289) (59) (2) (822) (2) Interest expense 17,369 15,358 12,220 8,301 6,725 42,604 28,065 Depreciation 27,729 27,785
Slide 9: Fixed and Variable Interest Rate Exposure
Fixed and Variable Interest Rate Exposure Significant portion of total debt is already hedged through to end 2024 1,200 1,000 800 US$ millions 600 400 200 0 At March 31, Estimated end of Estimated end of Estimated end of Estimated end of Estimated end of 2023 2023 2024 2025 2026 2027 Fixed rate debt
Slide 10: Forward Contracted Revenue Backed by Leading Energy Companies
Forward Contracted Revenue Backed by Leading Energy Companies First Quarter Contracted period 2023 Charterer’s option Operated in the spot market Agreed commercial terms, subject to charterer’s management approval Next anticipated drydock, at x vessel age (years) * Operates primarily in the North Se
Slide 11: Forward Contract Coverage
Forward Contract Coverage 2023 chartering largely completed; focus now on 2024 and beyond 100% 80% 60% 40% 20% 0% Q2 2023 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 %Fixed Contract %Charterer's Option %Available / Spot Market 11
Slide 12: Dropdown Inventory at Sponsor – Potential Future Acquisitions
Dropdown Inventory at 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 that a
Slide 13: FPSO Ordering and Deliveries Continuing At Pace in Brazil
FPSO Ordering and Deliveries Continuing At Pace in Brazil Source: Petrobras Strategic Plan 2023-2027, published November 30, 2022, page 64. https://www.investidorpetrobras.com.br/en/presentations-reports-and-events/presentations/ 13
Slide 14: Summary and Near-term Priorities
Summary and Near-term Priorities First quarter 2023 summary: Fleet operated with 100% utilization for scheduled operations, and 96.6% utilization taking into account the scheduled drydocking of the Carmen Knutsen. Announced cash distribution of $0.026 per common unit under 1099 structure, the 40
Slide 15: KNOP Website
KNOP Website Please visit our website at www.knotoffshorepartners.com for more information about our vessels and the shuttle tanker industry, as well as all of our financial reports and accounts, stock information, our ESG reports, information about our governance and management, and answers to many
Slide 16: Questions
Questions 16
Slide 17: Appendices
Appendices 17
Slide 18: Appendix A – KNOP Attributes – Our Investment Case
Appendix A – KNOP Attributes – Our Investment Case KNOP is classified as a corporation for U.S. federal income tax purposes. A U.S. holder of KNOP common units will receive a Form 1099 to report distributions received (not a Form K-1). We are a market leader in the operation of shuttle tankers a
Slide 19: Appendix B – Petrobras Main New Production Systems, Already Contracted
Appendix B – Petrobras Main New Production Systems, Already Contracted Source: Petrobras Financial Performance report, 4Q2022, published March 1, 2023, page 15. https://api.mziq.com/mzfilemanager/v2/d/25fdf098-34f5-4608-b7fa- 17d60b2de47d/c2bf100e-e750-3401-63b2-50c8d593f5c0?origin=1 19
Slide 20: Appendix C – Non-GAAP Financial Measures
Appendix C – 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 use
KNOT Offshore Partners — Q1 2023 Earnings Presentation on 6ix