Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q1 2024 Earnings Presentation
21 slides from Knot Offshore Partners Lp's earnings presentation, May 23, 2024
Slide 1: 1Q 2024 Earnings Presentation
1Q 2024 May 23, 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: 1Q 2024 and subsequent: financial headlines
1Q 2024 and subsequent: financial headlines ▪ 1Q 2024 financial headlines include: − Revenues: $76.6m − Operating income: $19.7m − Net income: $7.4m − Adjusted EDITDA: $47.5m − Available liquidity on March 31, 2024: $55.2m, comprising $50.2m in cash and cash equivalents plus $5m of undrawn credit fa
Slide 4: 1Q 2024 and subsequent: contractual and operational developments
1Q 2024 and subsequent: contractual and operational developments In Brazil: ▪ Vigdis Knutsen was delivered to Shell in March 2024 to commence on a three-year time charter ▪ Anna Knutsen saw an option exercised by TotalEnergies, which extended its current charter out to April 2026 ▪ Dan Sabia: Transp
Slide 5: 1Q 2024 and subsequent: outlook
1Q 2024 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 shuttle tanker demand and charter rates
Slide 6: Income statement
Income statement Unaudited, USD thousands 1Q 2024 4Q 2023 1Q 2023 12 months FY 2023 FY 2022 to 1Q 2024 Time charter and bareboat revenues 73,362 72,039 62,933 287,513 277,084 262,797 Voyage revenues 2,715 - 7,254 4,310 8,849 4,689 Loss of hire insurance recoveries - 505 911 1,929 2,840 758 Other inc
Slide 7: Adjusted EBITDA
Adjusted EBITDA Unaudited, USD thousands 1Q 2024 4Q 2023 1Q 2023 12 months FY 2023 FY 2022 to 1Q 2024 Net income (loss) 7,438 (5,282) (1,297) (25,593) (34,328) 58,667 Interest income (828) (992) (683) (3,613) (3,468) (822) Interest expense 17,465 18,101 17,369 72,166 72,070 42,604 Depreciation 27,74
Slide 8: Balance sheet
Balance sheet Unaudited, USD thousands At Mar 31, At Dec 31, At Mar 31, At Dec 31, 2024 2023 2024 2023 Current assets: Current liabilities: Cash and cash equivalents 50,243 63,921 Current portion of long-term debt 89,126 98,960 Inventories 4,286 3,696 Current lease liabilities 1,077 982 Amounts due
Slide 9: Long-term borrowings
Long-term borrowings Unaudited, USD thousands Original Outstanding at of which Balloon Vessels providing security amount1 March 31, 2024 Current due at Instalments2 maturity3 1. Loan due May 2024 (refinanced) 100,000 58,461 7,500 37,500 Hilda (refinanced) 2. Revolving credit facility with NTT due 25
Slide 10: Forward contracted revenue backed by leading energy companies
Forward contracted revenue backed by leading energy companies 1Q 2024(1) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Contracted period Shell InsurancePetroChina Shell Oil . major Windsor 15 . 18 20 Charterer’s option Equinor KNOT . Equinor Bodil * 10 . 15 . 18 Operated in the spot ma
Slide 11: Forward contract coverage
Forward contract coverage1 Focus remains on growing utilisation and forward visibility in 2024 100% 80% 60% 40% 20% 0% Q2 2024 Q3 2024 Q4 2024 %Fixed Contract %Charterer's Option %Available / Spot Market (1) This chart includes contract developments after March 31, 2024, up to the date of the Partne
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: Petrobras’ production starts in 2025
Petrobras’ production starts in 2025 Source: Petrobras Q1 2024 results webcast, available at https://www.investidorpetrobras.com.br/en/results-and-announcements/results-center/ www.knotoffshorepartners.com 15
Slide 16: 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 17: 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 18: Summary and near-term priorities
Summary and near-term priorities 1Q 2024 & subsequent: ▪ Utilization − 97.6%, with no impact from scheduled drydockings ▪ Generated − Revenues: $76.6m − Operating income: $19.7m − Net income: $7.4m − Adjusted EDITDA: $47.5m ▪ Secured additional fixed contract periods for Dan Sabia, Anna Knutsen, Car
Slide 19: Questions
Questions www.knotoffshorepartners.com 19
Slide 20: Appendix
Appendix www.knotoffshorepartners.com 20
Slide 21: 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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