Knot Offshore Partners Lp · NYSE:KNOP

Knot Offshore Partners Lp — Q3 2022 Earnings Presentation

17 slides from Knot Offshore Partners Lp's earnings presentation, Nov 30, 2022

  1. Slide 1: Third Quarter 2022

    Third Quarter 2022 November 30, 2022 (NYSE:KNOP)

  2. 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

  3. Slide 3: Third Quarter 2022 and Subsequent Highlights – 1

    Third Quarter 2022 and Subsequent Highlights – 1  Announced cash distribution of $0.52 per common unit for the 29th consecutive time at this level under 1099 structure, and the 38th consecutive distribution overall since the Partnership first listed in 2013.  Fleet operated with 99.7% utilization

  4. Slide 4: Third Quarter 2022 and Subsequent Highlights – 2

    Third Quarter 2022 and Subsequent Highlights – 2  The current time charter for the Brasil Knutsen with Galp Sinopec Brazil Services B.V. (“Galp”) expired in November 2022; however, the Partnership has entered into a new time charter contract with Galp, in direct continuation, for a period of one ye

  5. Slide 5: Income Statement

    Income Statement Unaudited, USD thousands 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 FY 2021 Time charter and bareboat revenues 67,738 63,788 65,187 70,637 66,559 269,306 Loss of hire insurance recoveries — — — 1,154 17 11,450 Other income 78 171 9 342 3 373 Total revenues 67,816 63,959 65,196 72,133 6

  6. Slide 6: Adjusted EBITDA

    Adjusted EBITDA Unaudited, USD thousands 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 FY 2021 Net income (loss) 15,972 9,888 26,780 23,133 13,527 53,876 Interest income (289) (59) (2) — (2) (2) Interest expense 12,220 8,301 6,725 6,646 7,243 28,065 Depreciation 27,638 26,059 25,937 25,974 26,070 99,559 I

  7. Slide 7: Balance Sheet

    Balance Sheet Unaudited, USD thousands At Sep 30, At Dec 31, At Sep 30, At Dec 31, 2022 2021 2022 2021 Current assets: Current liabilities: Cash and cash equivalents 49,561 62,293 Current portion of long-term debt 330,032 88,578 Inventories 4,915 3,306 Derivative liabilities 1,322 6,754 Amounts due

  8. Slide 8: Distributable Cash Flow

    Distributable Cash Flow Unaudited, USD thousands 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 FY 2021 Net income (loss) 15,972 9,888 26,780 23,133 13,527 53,876 Add: Depreciation 27,638 26,059 25,937 25,974 26,070 99,559 Impairment — — — — — 29,421 Other non-cash items; amortization of deferred 619 852 6

  9. Slide 9: Forward Contracted Revenue Backed by Leading Energy Companies

    Forward Contracted Revenue Backed by Leading Energy Companies Contracted period Charterer’s option Next anticipated drydock, at x vessel age (years) Ship operates primarily in the * North Sea Remaining forward contracted revenue of $644 million (excluding options) ($487 million as of June 30, 2022)

  10. Slide 10: Dropdown Inventory at Sponsor – Potential Acquisitions

    Dropdown Inventory at Sponsor – Potential Acquisitions Average firm contracted charter length of 7.4 years (from charter commencement), with charterers’ options to extend by a further 5.9 years on average. Contracted period Charterer’s option x Next anticipated drydock, at vessel age (years) Notes:

  11. Slide 11: Long-term Business – FPSO Ordering and Deliveries Continuing

    Long-term Business – FPSO Ordering and Deliveries Continuing  As direct pandemic impacts to FPSO deployment and oil production schedules have receded, the Brazilian offshore sector has resumed its aggressive expansion across the shuttle tanker-serviced Pre-Salt area, underscored by continued capita

  12. Slide 12: Shuttle Tanker Orderbook Remains Muted In Face of Growing Demand

    Shuttle Tanker Orderbook Remains Muted In Face of Growing Demand In  Following earlier capex program delays across Built Owner Vessel name Contract type Trading Area Service the energy industry and increasing newbuild prices, only 4 new shuttle tanker orders have 2021 ALTERA ALTERA WAVE COA North S

  13. Slide 13: Summary and Near-term Priorities

    Summary and Near-term Priorities Third quarter 2022 summary:  Utilization of 99.7% for scheduled operations.  Distributable cashflow of $10.9 million, resulting in coverage of 0.60.  Paid quarterly distribution of $0.52 for 29th consecutive quarter.  $644m of remaining contracted forward revenue

  14. Slide 14: Questions

    Questions 14

  15. Slide 15: Appendices

    Appendices 15

  16. Slide 16: 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

  17. Slide 17: Appendix B – Non-GAAP Financial Measures

    Appendix B – 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

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