Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2022 | |
Document And Entity Information | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2022 |
Entity File Number | 001-35866 |
Entity Registrant Name | KNOT Offshore Partners LP |
Entity Central Index Key | 0001564180 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Address, Address Line One | 2 Queen’s Cross, |
Entity Address, City or Town | Aberdeen, Aberdeenshire |
Entity Address, Postal Zip Code | AB15 4YB |
Entity Address, Country | GB |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Operating revenues: (Notes 3,4 and 13) | ||||||
Time charter and bareboat revenues | $ 63,788 | $ 66,513 | $ 128,975 | $ 132,111 | ||
Loss of hire insurance recoveries (Note 5) | 4,397 | 10,279 | ||||
Other income | 171 | 27 | 180 | 28 | ||
Total revenues | 63,959 | 70,937 | 129,155 | 142,418 | ||
Operating expenses: (Note 13) | ||||||
Vessel operating expenses | 23,024 | 17,394 | 43,085 | 35,954 | ||
Depreciation (Note 10) | 26,059 | 23,831 | 51,996 | 47,515 | ||
Impairment (Note 19) | 29,421 | 29,421 | ||||
General and administrative expenses | 1,428 | 1,492 | 3,126 | 3,113 | ||
Total operating expenses | 50,511 | 72,138 | 98,207 | 116,003 | ||
Operating income (loss) | 13,448 | (1,201) | 30,948 | 26,415 | ||
Finance income (expense): | ||||||
Interest income | 59 | 61 | ||||
Interest expense (Note 6) | (8,301) | (6,804) | (15,026) | (14,176) | ||
Other finance expense (Note 6) | (103) | (250) | (312) | (409) | ||
Realized and unrealized gain (loss) on derivative instruments (Note 7) | 5,116 | (2,265) | 21,473 | 5,746 | ||
Net gain (loss) on foreign currency transactions | (165) | (144) | (98) | (96) | ||
Total finance expense | (3,394) | (9,463) | 6,098 | (8,935) | ||
Income before income taxes | 10,054 | (10,664) | 37,046 | 17,480 | ||
Income tax benefit (Note 9) | (166) | (261) | (378) | (264) | ||
Net income (loss) | 9,888 | (10,925) | 36,668 | [1] | 17,216 | [1] |
Series A Preferred unitholders' interest in net income | 1,700 | 1,759 | 3,400 | 3,559 | ||
General Partner's interest in net income | 150 | (233) | 610 | 253 | ||
Limited Partners' interest in net income | $ 8,038 | $ (12,451) | $ 32,658 | $ 13,404 | ||
Earnings per unit (Basic): (Note 15) | ||||||
General Partner unit (basic & diluted) | $ 0.23 | $ (0.38) | $ 0.95 | $ 0.41 | ||
Earnings per unit (Diluted): (Note 15) | ||||||
General Partner unit (basic & diluted) | 0.23 | (0.38) | 0.95 | 0.41 | ||
Common Units | ||||||
Earnings per unit (Basic): (Note 15) | ||||||
Common unit (basic) | 0.23 | (0.38) | 0.95 | 0.41 | ||
Earnings per unit (Diluted): (Note 15) | ||||||
Common unit (diluted) | 0.23 | $ (0.38) | 0.94 | $ 0.41 | ||
Class B Units | ||||||
Earnings per unit (Basic): (Note 15) | ||||||
Common unit (basic) | 0.19 | 0.87 | ||||
Earnings per unit (Diluted): (Note 15) | ||||||
Common unit (diluted) | $ 0.19 | $ 0.87 | ||||
[1] Included in net income is interest paid amounting to $13.3 million and $12.6 million for the six months ended June 30, 2022 and 2021, respectively |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Unaudited Condensed Consolidated Statements of Comprehensive Income | ||||||
Net income (loss) | $ 9,888 | $ (10,925) | $ 36,668 | [1] | $ 17,216 | [1] |
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | ||
Comprehensive income | $ 9,888 | $ (10,925) | $ 36,668 | $ 17,216 | ||
[1] Included in net income is interest paid amounting to $13.3 million and $12.6 million for the six months ended June 30, 2022 and 2021, respectively |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents (Note 8) | $ 88,474 | $ 62,293 | |
Amounts due from related parties (Note 13) | 1,561 | 2,668 | |
Inventories | 3,647 | 3,306 | |
Derivative assets (Notes 7 and 8) | 4,480 | ||
Other current assets (Note 17) | 11,632 | 5,626 | |
Total current assets | 109,794 | 73,893 | |
Long-term assets: | |||
Vessels, net of accumulated depreciation (Notes 8, 10 and 19) | 1,558,650 | 1,598,106 | |
Right-of-use assets (Note 4) | 2,419 | 2,742 | |
Intangible assets, net (Note 11) | 75 | ||
Derivative assets (Notes 7 and 8) | 11,019 | 1,015 | |
Accrued income | 668 | 1,450 | |
Total Long-term assets | 1,572,756 | 1,603,388 | |
Total assets | 1,682,550 | 1,677,281 | |
Current liabilities: | |||
Trade accounts payable (Note 13) | 5,675 | 3,872 | |
Accrued expenses (Note 18) | 9,082 | 6,429 | |
Current portion of long-term debt (Notes 8 and 12) | 90,522 | 88,578 | |
Current lease liabilities (Note 4) | 656 | 648 | |
Current portion of derivative liabilities (Notes 7 and 8) | 624 | 6,754 | |
Income taxes payable | 812 | 548 | |
Current portion of contract liabilities (Note 11) | 1,342 | 1,518 | |
Prepaid charter | 6,933 | 6,186 | |
Amount due to related parties (Note 13) | 1,133 | 1,424 | |
Total current liabilities | 116,779 | 115,957 | |
Long-term liabilities: | |||
Long-term debt (Notes 8 and 12) | 891,091 | 878,548 | |
Lease liabilities (Note 4) | 1,763 | 2,093 | |
Derivative liabilities (Notes 7 and 8) | 4,260 | ||
Contract liabilities (Note 11) | 68 | 651 | |
Deferred tax liabilities (Note 9) | 203 | 228 | |
Deferred revenues | 2,698 | 2,529 | |
Total long-term liabilities | 895,823 | 888,309 | |
Total liabilities | 1,012,602 | 1,004,266 | |
Commitments and contingencies (Note 14) | |||
Series A Convertible Preferred Units | [1] | 84,308 | 84,308 |
Partners' capital: | |||
General partner interest | 10,436 | 10,492 | |
Total partners' capital | 585,640 | 588,707 | |
Total liabilities and equity | 1,682,550 | 1,677,281 | |
Common Units | |||
Partners' capital: | |||
Common unitholders | 568,515 | 568,762 | |
Class B Units | |||
Partners' capital: | |||
Common unitholders | $ 6,689 | $ 9,453 | |
[1]On September 7, 2021, the Partnership entered into an exchange agreement with Knutsen NYK and the Partnership’s general partner whereby Knutsen NYK contributed to the Partnership all of Knutsen NYK’s IDRs, in exchange for the issuance by the Partnership to Knutsen NYK of 673,080 common units and 673,080 Class B Units, whereupon the IDRs were cancelled. As of June 30, 2022, 252,405 of the Class B Units had been converted to common units. |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - Knutsen NYK - shares | Sep. 27, 2021 | Sep. 07, 2021 |
Common Units | ||
Issue of Units | 673,080 | 673,080 |
Class B Units | ||
Issue of Units | 673,080 | 673,080 |
Number of units converted | 252,405 | 252,405 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | General Partner Unit | Common Units | Class B Units | Total | |
Beginning balance at Dec. 31, 2020 | $ 10,895 | $ 597,390 | $ 608,285 | ||
Net income (loss) | 253 | 13,404 | 13,657 | ||
Conversion of preferred units to common units | 4,856 | 4,856 | |||
Other comprehensive income | 0 | ||||
Cash distributions | (666) | (35,402) | (36,068) | ||
Ending balance at Jun. 30, 2021 | 10,482 | 580,248 | 590,730 | ||
Convertible preferred units, beginning balance at Dec. 31, 2020 | 89,264 | ||||
Net income | 3,559 | ||||
Conversion of preferred units to common units | (4,856) | ||||
Cash distributions | (3,600) | ||||
Convertible preferred units, ending balance at Jun. 30, 2021 | 84,367 | ||||
Beginning balance at Mar. 31, 2021 | 11,048 | 605,544 | 616,592 | ||
Net income (loss) | (233) | (12,451) | (12,684) | ||
Conversion of preferred units to common units | [1] | 4,856 | 4,856 | ||
Other comprehensive income | 0 | ||||
Cash distributions | (333) | (17,701) | (18,034) | ||
Ending balance at Jun. 30, 2021 | 10,482 | 580,248 | 590,730 | ||
Convertible preferred units, beginning balance at Mar. 31, 2021 | 89,264 | ||||
Net income | 1,759 | ||||
Conversion of preferred units to common units | [1] | (4,856) | |||
Cash distributions | (1,800) | ||||
Convertible preferred units, ending balance at Jun. 30, 2021 | 84,367 | ||||
Beginning balance at Dec. 31, 2021 | 10,492 | 568,762 | $ 9,453 | 588,707 | |
Net income (loss) | 610 | 32,201 | 457 | 33,268 | |
Conversion of Class B to common units | [2] | 2,652 | (2,652) | ||
Other comprehensive income | 0 | ||||
Cash distributions | (666) | (35,100) | (569) | (36,335) | |
Ending balance at Jun. 30, 2022 | 10,436 | 568,515 | 6,689 | 585,640 | |
Convertible preferred units, beginning balance at Dec. 31, 2021 | [2] | 84,308 | |||
Net income | 3,400 | ||||
Cash distributions | (3,400) | ||||
Convertible preferred units, ending balance at Jun. 30, 2022 | [2] | 84,308 | |||
Beginning balance at Mar. 31, 2022 | 10,619 | 576,811 | 8,190 | 595,620 | |
Net income (loss) | 150 | 7,950 | 87 | 8,188 | |
Conversion of Class B to common units | [2] | 1,325 | (1,325) | ||
Other comprehensive income | 0 | ||||
Cash distributions | (333) | (17,572) | (263) | (18,168) | |
Ending balance at Jun. 30, 2022 | $ 10,436 | $ 568,515 | $ 6,689 | 585,640 | |
Convertible preferred units, beginning balance at Mar. 31, 2022 | 84,308 | ||||
Net income | 1,700 | ||||
Cash distributions | (1,700) | ||||
Convertible preferred units, ending balance at Jun. 30, 2022 | [2] | $ 84,308 | |||
[1] On May 27, 2021, Tortoise Direct Opportunities Fund LP, the holder of 416,677 of the Partnership’s Series A Convertible Preferred Units (“Series A Preferred Units”), sold 208,333 of its Series A Preferred Units to KNOT and converted 208,334 Series A Preferred Units to 215,292 common units based on a conversion rate of 1.0334 . |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Changes in Partners' Capital (Parenthetical) | May 27, 2021 shares |
Tortoise Direct Opportunities Fund LP | Common Units | |
Conversion of Units | 215,292 |
Conversion rate | 1.0334 |
Tortoise Direct Opportunities Fund LP | Series A Convertible Preferred Units | |
Shares held | 416,677 |
Issue of Units | 208,333 |
Conversion of Units | 208,334 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |||
OPERATING ACTIVITIES | |||||||
Net income (1) | $ 9,888 | $ (10,925) | $ 36,668 | [1] | $ 17,216 | [1] | |
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation | 26,059 | 23,831 | 51,996 | 47,515 | $ 99,559 | ||
Impairment (Note 19) | 29,421 | 29,421 | 29,421 | ||||
Amortization of contract intangibles / liabilities | (683) | (456) | |||||
Amortization of deferred debt issuance cost | 852 | 656 | 1,452 | 1,758 | |||
Drydocking expenditure | (11,339) | (3,428) | |||||
Income tax expense | 166 | 261 | 378 | 264 | |||
Income taxes paid | (66) | (74) | |||||
Unrealized (gain) loss on derivative instruments | (24,875) | (11,742) | |||||
Unrealized (gain) loss on foreign currency transactions | 42 | 27 | |||||
Changes in operating assets and liabilities: | |||||||
Decrease (increase) in amounts due from related parties | 1,107 | 3,964 | |||||
Decrease (increase) in inventories | (341) | (613) | |||||
Decrease (increase) in other current assets | (6,007) | (8,929) | |||||
Decrease (increase) in accrued revenue | 782 | 703 | |||||
Increase (decrease) in trade accounts payable | 1,889 | (8) | |||||
Increase (decrease) in accrued expenses | 2,654 | 487 | |||||
Increase (decrease) prepaid charter | 746 | 2,399 | |||||
Increase (decrease) in amounts due to related parties | (292) | 1,310 | |||||
Net cash provided by operating activities | 54,111 | 79,814 | |||||
INVESTING ACTIVITIES | |||||||
Additions to vessel and equipment | (1,030) | (6,748) | |||||
Net cash used in investing activities | (1,030) | (6,748) | |||||
FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt | 132,000 | 99,300 | |||||
Repayment of long-term debt | (118,137) | (132,208) | |||||
Payment of debt issuance cost | (828) | (1,478) | |||||
Cash distributions | (39,735) | (39,668) | |||||
Net cash used in financing activities | (26,700) | (74,054) | |||||
Effect of exchange rate changes on cash | (200) | (6) | |||||
Net increase (decrease) in cash and cash equivalents | 26,181 | (994) | |||||
Cash and cash equivalents at the beginning of the period | 62,293 | 52,583 | 52,583 | ||||
Cash and cash equivalents at the end of the period | $ 88,474 | $ 51,589 | $ 88,474 | $ 51,589 | $ 62,293 | ||
[1] Included in net income is interest paid amounting to $13.3 million and $12.6 million for the six months ended June 30, 2022 and 2021, respectively |
Unaudited Condensed Consolida_8
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Unaudited Condensed Consolidated Statements of Cash Flows | ||
Amount of interests paid | $ 13.3 | $ 12.6 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Description of Business | |
Description of Business | 1) Description of Business KNOT Offshore Partners LP (the “Partnership”) was formed as a limited partnership under the laws of the Republic of the Marshall Islands. The Partnership was formed for the purpose of acquiring 100% ownership interests in four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (“KNOT” or “Knutsen NYK”) in connection with the Partnership’s initial public offering of its common units (the “IPO”), which was completed on April 15, 2013. As of June 30, 2022, the Partnership had a fleet of seventeen shuttle tankers, the Windsor Knutsen Bodil Knutsen Recife Knutsen Fortaleza Knutsen Carmen Knutsen, Hilda Knutsen, Torill Knutsen Dan Cisne Dan Sabia, Ingrid Knutsen Raquel Knutsen, Tordis Knutsen, Vigdis Knutsen, Lena Knutsen Brasil Knutsen Anna Knutsen Tove Knutsen The consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. The Partnership expects that its primary future sources of funds will be available cash, cash from operations, borrowings under any new loan agreements and the proceeds of any equity financings. The Partnership believes that these sources of funds (assuming the current rates earned from existing charters) will be sufficient to cover operational cash outflows and ongoing obligations under the Partnership’s financing commitments to pay loan interest and make scheduled loan repayments. Accordingly, as of September 2, 2022, the Partnership believes that its current resources, including the undrawn portion of its revolving credit facilities of $35 million, are sufficient to meet working capital requirements for its current business for at least the next twelve months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies (a) Basis of Preparation The accompanying unaudited condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of management of the Partnership, all adjustments considered necessary for a fair presentation, which are of normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The unaudited condensed consolidated financial statements do not include all the disclosures and information required for a complete set of annual financial statements; and, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2021, which are included in the Partnership’s Annual Report on Form 20-F (the “2021 20-F”). (b) Significant Accounting Policies The accounting policies adopted in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those followed in the preparation of the Partnership’s audited consolidated financial statements for the year ended December 31, 2021, as contained in the Partnership’s 2021 20-F. (c) Recent Accounting Pronouncements Adoption of new accounting standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-06 Debt-Debt with conversion and other options (subtopic 470-20) and Derivatives and Hedging-contracts in entity’s own equity (subtopic 815-40): Accounting for convertible instruments and contracts in an entity’s own equity simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The new guidance eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features with respect to accounting for convertible instruments. Further the ASU simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Entities are required to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. The new guidance did not materially impact the Partnership. Accounting pronouncements not yet adopted In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides temporary optional expedients and exceptions to the guidance in US GAAP on contract modifications and hedge accounting, to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. For all types of hedging relationships, the guidance allows an entity to change the reference rate and other critical terms related to reference rate reform without having to dedesignate the relationship. The guidance is effective upon issuance through December 31, 2022. Although the Partnership does not apply hedge accounting, the Partnership has debt and interest rate swaps that reference LIBOR. The Partnership continues to evaluate the impact of the guidance on the consolidated financial statements as well as the commercial implications for the transition away from LIBOR, in particular through discussions with lenders and other market participants. Other recently issued accounting pronouncements are not expected to materially impact the Partnership. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information | |
Segment Information | 3) Segment Information The Partnership has not presented segment information as it considers its operations to occur in one reportable segment, the shuttle tanker market. As of June 30, 2022 and 2021, the Partnership’s fleet consisted of seventeen vessels, and operated under time charters and bareboat charters. In both time charters and bareboat charters, the charterer, not the Partnership, controls the choice of which trading areas the Vessels will serve. Accordingly, the Partnership’s management, including the chief operating decision makers, does not evaluate performance according to geographical region. The following table presents time charter and bareboat revenues and percentages of revenues for material customers that accounted for more than 10% of the Partnership’s consolidated revenues during the three and six months ended June 30, 2022 and 2021. All of these customers are subsidiaries of major international oil companies. Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Eni Trading and Shipping S.p.A. $ 11,057 17 % $ 10,915 16 % $ 21,992 17 % $ 21,748 16 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 11,463 18 % 11,249 17 % 22,805 18 % 22,378 17 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 9,693 15 % 9,282 14 % 19,031 15 % 18,075 14 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 3,460 5 % 16,168 24 % 12,286 10 % 32,156 24 % Galp Sinopec Brasil Services B.V. 4,176 7 % 8,881 13 % 10,652 8 % 17,665 13 % The Partnership has financial assets that expose it to credit risk arising from possible default by a counterparty. The Partnership considers its counterparties to be creditworthy banking and financial institutions and does not expect any significant loss to result from non-performance by such counterparties. The maximum loss due to credit risk that the Partnership would incur if counterparties failed completely to perform would be the carrying value of cash and cash equivalents, and derivative assets. The Partnership, in the normal course of business, does not demand collateral from its counterparties. |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2022 | |
Operating Leases | |
Operating Leases | 4) Operating Leases Revenues The Partnership’s primary source of revenues is chartering its shuttle tankers to its customers. The Partnership uses two types of contracts, time charter contracts and bareboat charter contracts. The Partnership’s time-charter contracts include both a lease component, consisting of the bareboat element of the contract, and non-lease component, consisting of operation of the Vessel for the customers, which includes providing the crewing and other services related to the Vessel’s operations, the cost of which is included in the daily hire rate. The following table presents the Partnership’s revenues by time charter and bareboat charters and other revenues for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Time charter revenues (service element included) $ 52,324 $ 55,264 $ 106,170 $ 109,733 Bareboat revenues 11,463 11,249 22,805 22,378 Other revenues (loss of hire insurance recoveries and other income) 172 4,424 180 10,307 Total revenues $ 63,959 $ 70,937 $ 129,155 $ 142,418 As of June 30, 2022, the minimum contractual future revenues to be received from time charters and bareboat charters during the next five years and thereafter are as follows (including service element of the time charter, but excluding unexercised customer option periods): (U.S. Dollars in thousands) 2022 (excluding the six months ended June 30, 2022) $ 93,758 2023 99,530 2024 106,541 2025 115,272 2026 52,405 2027 and thereafter 15,034 Total $ 482,540 The minimum contractual future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum contractual future revenues are calculated based on certain assumptions such as operating days per year. In addition, minimum contractual future revenues presented in the table above have not been reduced by estimated off-hire time for periodic maintenance. The amounts may vary given unscheduled future events such as vessel maintenance. The Partnership’s fleet as of June 30, 2022 consisted of: ● the Fortaleza Knutsen , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in March 2023 with Fronape International Company, a subsidiary of Petrobras Transporte S.A. (“Transpetro”); ● the Recife Knutsen , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in August 2023 with Transpetro; ● the Bodil Knutsen , a shuttle tanker built in 2011 that is currently operating under a rolling time charter contract with Knutsen Shuttle Tankers Pool AS, a subsidiary of KNOT, which currently expires in September 2022, with options for KNOT to extend until June 2023. The vessel will commence on a new time charter contract with Equinor in the fourth quarter of 2023 or the first quarter of 2024 . The new charter is for a fixed period, at the charterer’s option, of either one year or two years with options for the charterer to extend the charter, in either case, by two further one-year periods; ● the Windsor Knutsen , a conventional oil tanker built in 2007 and retrofitted to a shuttle tanker in 2011. The Partnership has agreed the commercial terms for a new time charter contract for the Windsor Knutsen with a major oil company to commence in or around January 2023 for a fixed period of one year with a charterer’s option to extend the charter by one further year. Until commencement of this new contract the vessel will seek further short-term employment. The vessel will then enter into a new time charter contract with Equinor, to commence in the fourth quarter of 2024 or the first quarter of 2025 for a fixed period, at the charterer’s option, of either one year or two years, with options for the charterer to extend the charter, in either case, by two further one-year periods; ● the Carmen Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in January 2023 , with Repsol Sinopec Brasil, B.V. a subsidiary of Repsol Sinopec Brasil, S.A. (“Repsol”), with charterer’s options to extend until January 2026 ; ● the Hilda Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter with Eni Trading and Shipping S.p.A. (“ENI”). The charterer has notified the Partnership of its intention to redeliver the vessel and, as a consequence, the vessel is currently expected to be returned to the Partnership in or around September 2022 . The Partnership is now marketing the vessel for new employment; ● the Torill Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in November 2022 with ENI, with charterer’s options to extend until November 2024 ; ● the Dan Cisne , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in September 2023 with Transpetro; ● the Dan Sabia , a shuttle tanker built in 2012 that is currently operating under a bareboat charter that expires in January 2024 with Transpetro; ● the Ingrid Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter with Vår Energi Marine AS, a Norwegian subsidiary of Vår Energi AS. The charterer will redeliver the vessel in around November 2022 . The vessel will be open for employment until January 2024 when the vessel will commence on a three year fixed time charter contract with ENI, with the charterer having options to extend the charter by up to three further years; ● the Raquel Knutsen , a shuttle tanker built in 2015 that is currently operating under a time charter that expires in June 2025 with Repsol, with charterer’s options to extend until June 2030 ; ● the Tordis Knutsen , a shuttle tanker built in 2016. The Partnership has agreed the commercial terms for a new time charter contract for the vessel with a subsidiary of the French oil major TotalEnergies to commence in September 2022 for a fixed period of three months, with charterer’s options to extend the charter by up to nine further months. The vessel will commence operating under a three-year time charter contract with Shell in 2023 ; ● the Vigdis Knutsen , a shuttle tanker built in 2017 is currently operating under a time charter with PetroChina which expires in September 2023 , with charterer’s option to extend by six further months. The vessel will commence operating under a new three-year time charter contract with Shell in 2023 ; ● the Lena Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter with a subsidiary of TotalEnergies for a fixed period of six months with charterer’s options to extend the charter by up to six further months. The vessel will commence operating under a new three -year time charter contract with Shell in 2023 ; ● the Brasil Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in September 2022 with Galp Sinopec Brazil Services B.V. (“Galp”). The Partnership is currently negotiating a new proposed one-year time charter contract, with options to extend, with an oil major, to commence in or around September 2022 ; ● the Anna Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter that expires in April 2024 with a wholly owned subsidiary of TotalEnergies with charterer’s options to extend the time charter by up to three further one-year periods; and ● the Tove Knutsen , a shuttle tanker built in 2020 that is currently operating under a time charter that expires in October 2027 with Equinor, with charterer’s options to extend until October 2040 . Lease obligations The Partnership does not have any material leased assets but has some leased equipment on operational leases on the various ships operating on time charter contracts. As of June 30, 2022, the right-of-use asset and lease liability for operating leases A maturity analysis of the Partnership’s lease liabilities from leased-in equipment as of June 30, 2022 is as follows: (U.S. Dollars in thousands) 2022 (excluding the six months ended June 30, 2022) 352 2023 $ 703 2024 703 2025 703 2026 59 2027 and thereafter — Total $ 2,520 Less imputed interest 101 Carrying value of operating lease liabilities $ 2,419 |
Insurance proceeds
Insurance proceeds | 6 Months Ended |
Jun. 30, 2022 | |
Insurance proceeds | |
Insurance proceeds | 5) Insurance proceeds Windsor Knutsen In December 2020, the Windsor Knutsen 14 million, respectively, for loss of hire proceeds which were recorded as a component of total revenues since day rates are recovered under the terms of the policy. In addition, as of December 31, 2021, the Partnership had claimed and received payments of $4.1 million (net of deductible amounts) for hull and machinery recoveries. Tove Knutsen In March 2021, the Tove Knutsen In addition, as of June 30, 2022, the Partnership had claimed and received payments of $0.1 million (net of deductible amounts) for hull and machinery recoveries. Bodil Knutsen In April 2021, the Bodil Knutsen Vigdis Knutsen In April 2022, the Vigdis Knutsen |
Other Finance Expenses
Other Finance Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Other Finance Expenses | |
Other Finance Expenses | 6) Other Finance Expenses (a) Interest Expense The following table presents the components of interest cost as reported in the consolidated statements of operations for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Interest expense $ 7,449 $ 6,148 $ 13,574 $ 12,418 Amortization of debt issuance cost and fair value of debt assumed 852 656 1,452 1,758 Total interest cost $ 8,301 $ 6,804 $ 15,026 $ 14,176 (b) Other Finance Expense The following table presents the components of other finance expense for three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Bank fees, charges $ (3) $ 132 $ 89 $ 215 Commitment fees 106 118 223 194 Total other finance expense $ 103 $ 250 $ 312 $ 409 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments | |
Derivative Instruments | 7) Derivative Instruments The unaudited condensed consolidated interim financial statements include the results of interest rate swap contracts to manage the Partnership’s exposure related to changes in interest rates on its variable rate debt instruments and the results of foreign exchange forward contracts to manage its exposure related to changes in currency exchange rates on its operating expenses, mainly crew expenses, in currency other than the U.S. Dollar and on its contract obligations. The Partnership does not apply hedge accounting for derivative instruments. The Partnership does not speculate using derivative instruments. By using derivative financial instruments to economically hedge exposures to changes in interest rates, the Partnership exposes itself to credit risk and market risk. Derivative instruments that economically hedge exposures are used for risk management purposes, but these instruments are not designated as hedges for accounting purposes. Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Partnership, which creates credit risk for the Partnership. When the fair value of a derivative instrument is negative, the Partnership owes the counterparty, and, therefore, the Partnership is not exposed to the counterparty’s credit risk in those circumstances. The Partnership minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Partnership do not contain credit risk-related contingent features. The Partnership has not entered into master netting agreements with the counterparties to its derivative financial instrument contracts. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Partnership assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities. The Partnership has historically used variable interest rate mortgage debt to finance its vessels. The variable interest rate mortgage debt obligations expose the Partnership to variability in interest payments due to changes in interest rates. The Partnership believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, the Partnership has entered into London Interbank Offered Rate (“LIBOR”)-based interest rate swap contracts to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR. These swaps change a portion of the Partnership’s total variable rate cash flow exposure on the mortgage debt obligations to fixed cash flows. Under the terms of the interest rate swap contracts, the Partnership receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed rate debt for the notional amount of its debt hedged. As of June 30, 2022, and December 31, 2021, the total notional amount of the Partnership’s outstanding interest rate swap contracts that were entered into in order to hedge outstanding or forecasted debt obligations were $415.8 million and $462.3 million, respectively. As of June 30, 2022, and December 31, 2021, the carrying amount of the interest rate swap contracts was a net asset of $15.3 million and a net liability of $10.0 million, respectively. See Note 8—Fair Value Measurements. Changes in the fair value of interest rate swap contracts are reported in realized and unrealized gain (loss) on derivative instruments in the same period in which the related interest affects earnings. The Partnership and its subsidiaries utilize the U.S. Dollar as their functional and reporting currency, because all of their revenues and the majority of their expenditures, including the majority of their investments in vessels and their financing transactions, are denominated in U.S. Dollars. Payment obligations in currencies other than the U.S. Dollar, and in particular operating expenses in NOK, expose the Partnership to variability in currency exchange rates. The Partnership believes that it is prudent to limit the variability of a portion of its currency exchange exposure. To meet this objective, the Partnership entered into foreign exchange forward contracts to manage a portion of the fluctuations in cash flows resulting from changes in the exchange rates towards the U.S. Dollar. The agreements change the variable exchange rate to fixed exchange rates at agreed dates. As of June 30, 2022 and December 31, 2021, the total contract amount in foreign currency of the Partnership’s outstanding foreign exchange forward contracts that were entered into to economically hedge outstanding future payments in currencies other than the U.S. Dollar were NOK 0.4 million and NOK nil, respectively. As of June 30, 2022, and December 31, 2021, the carrying amount of the Partnership’s foreign exchange forward contracts was a net liability of $0.4 million and $nil, respectively. See Note 8-Fair Value Measurements. The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Realized gain (loss): Interest rate swap contracts $ (1,550) $ (2,087) $ (3,402) $ (5,996) Foreign exchange forward contracts — — — — Total realized gain (loss): (1,550) (2,087) (3,402) (5,996) Unrealized gain (loss): Interest rate swap contracts 7,080 (178) 25,289 11,742 Foreign exchange forward contracts (414) — (414) — Total unrealized gain (loss): 6,666 (178) 24,875 11,742 Total realized and unrealized gain (loss) on derivative instruments: $ 5,116 $ (2,265) $ 21,473 $ 5,746 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 8) Fair Value Measurements (a) Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Partnership’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (U.S. Dollars in thousands) Amount Value Amount Value Financial assets: Cash and cash equivalents $ 88,474 $ 88,474 $ 62,293 $ 62,293 Current derivative assets: Interest rate swap contracts 4,480 4,480 — — Non-current derivative assets: Interest rate swap contracts 11,019 11,019 1,015 1,015 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 210 210 6,754 6,754 Foreign exchange forward contracts 414 414 — — Non-current derivative liabilities: Interest rate swap contracts — — 4,260 4,260 Long-term debt, current and non-current 988,458 988,458 974,596 974,596 The carrying amounts shown in the table above are included in the consolidated balance sheets under the indicated captions. Carrying amount of long-term debt, current and non-current, above excludes capitalized debt issuance cost of $6.8 million and $7.5 million as of June 30, 2022 and December 31, 2021, respectively. The carrying value of trade accounts receivable, trade accounts payable and receivables/payables to owners and affiliates approximate their fair value. The fair values of the financial instruments shown in the above table as of June 30, 2022 and December 31, 2021 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Partnership’s own judgment about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Partnership based on the best information available in the circumstances, including expected cash flows, appropriately risk-adjusted discount rates and available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: ● Cash and cash equivalents and restricted cash : The fair value of the Partnership’s cash balances approximates the carrying amounts due to the current nature of the amounts. As of June 30, 2022 and December 31, 2021 there is no restricted cash. ● Interest rate swap contracts: The fair value of interest rate swap contracts is determined using an income approach using the following significant inputs: (1) the term of the swap contract (weighted average of 3.2 years and 3.4 years, as of June 30, 2022 and December 31, 2021, respectively), (2) the notional amount of the swap contract (ranging from $4.4 million to $35.0 million as of June 30,2022 and ranging from $5.3 million to $37.5 million as of December 31, 2021), discount rates interpolated based on relevant LIBOR swap curves; and (3) the rate on the fixed leg of the swap contract (rates ranging from 0.71% to 2.90% as of June 30, 2022 and from 0.71% to 2.90% as of December 31, 2021). ● Foreign exchange forward contracts: The fair value is calculated using mid-rates (excluding margins) as determined by counterparties based on available market rates as of the balance sheet date. The fair value is discounted from the value at expiration to the current value of the contracts. ● Long-term debt : With respect to long-term debt measurements, the Partnership uses market interest rates and adjusts for risks, such as its own credit risk. In determining an appropriate spread to reflect its credit standing, the Partnership considered interest rates currently offered to KNOT for similar debt instruments of comparable maturities by KNOT’s and the Partnership’s bankers as well as other banks that regularly compete to provide financing to the Partnership. (b) Fair Value Hierarchy The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of June 30, 2022 and December 31, 2021: Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable June 30, Assets Inputs Inputs (U.S. Dollars in thousands) 2022 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 88,474 $ 88,474 $ — $ — Current derivative assets: Interest rate swap contracts 4,480 — 4,480 — Non-current derivative assets: Interest rate swap contracts 11,019 — 11,019 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 210 — 210 — Foreign exchange forward contracts 414 — 414 — Long-term debt, current and non-current 988,458 — 988,458 — Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2021 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 62,293 $ 62,293 $ — $ — Non-current derivative assets: Interest rate swap contracts 1,015 — 1,015 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 6,754 — 6,754 — Non-current derivative liabilities: Interest rate swap contracts 4,260 — 4,260 — Long-term debt, current and non-current 974,596 — 974,596 — The Partnership’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1 and Level 2 as of June 30, 2022 and December 31, 2021 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes | |
Income Taxes | 9) Income Taxes Components of Current and Deferred Tax Expense After the reorganization of the Partnership’s predecessor’s activities into the new group structure in February 2013, all profit from continuing operations in Norway is taxable within the tonnage tax regime. The consequence of the reorganization is a one-time entrance tax into the Norwegian tonnage tax regime due to the Partnership’s acquisition of the shares in the subsidiary that owns the Fortaleza Knutsen Recife Knutsen The total amount of the entrance tax was estimated to be $3.0 million, which was recognized in the three months ended March 31, 2013. At September 30, 2017 the Partnership acquired the shares in the subsidiary that owns the Lena Knutsen The taxes payable are calculated based on the Norwegian corporate tax rate of 22% for 2022 and 2021, and the deferred tax liabilities are also calculated based on a tax rate of 22% effective as from January 1, 2022 and January 1, 2021, respectively. $0.1 million of the entrance tax was paid both during the first quarter of 2022 and 2021. As of June 30, 2022 and December 31, 2021, UK income tax is presented as income taxes payable, while $0.2 million and $0.2 million is presented as non-current deferred taxes payable, respectively. Significant components of current and deferred income tax expense attributable to income from continuing operations for the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Income before income taxes $ 10,054 $ (10,664) $ 37,046 $ 17,480 Income tax (expense) (166) (261) (378) (264) Effective tax rate $ (2) % $ 2 % $ (1) % $ (2) % Income tax expenses for the three and six months ended June 30, 2022 and 2021 consist of the following: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Income tax benefit (expense) within Norway $ (163) $ (258) $ (375) $ (258) Income tax benefit (expense) within UK (3) (3) (3) (6) Income tax benefit (expense) $ (166) $ (261) $ (378) $ (264) Effective tax rate (2) % 2 % (1) % (2) % The Partnership records a valuation allowance for deferred tax assets when it is more likely than not that some of or all of the benefit from the deferred tax assets will not be realized. In assessing the realizability of deferred tax assets, which relates to financial loss carry forwards and other deferred tax assets within the tonnage tax regime, the Partnership considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized taking into account all the positive and negative evidence available. As of June 30, 2022 and December 31, 2021, there are no deferred tax assets recognized. |
Vessels and Equipment
Vessels and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Vessels and Equipment | |
Vessels and Equipment | 10) Vessels and Equipment As of June 30, 2022 and December 31, 2021, Vessels with a book value of $1,559 million and $1,598 million, respectively, are pledged as security for the Partnership’s long-term debt. See Note 12—Long-term debt. Vessels & Accumulated Accumulated (U.S. Dollars in thousands) equipment depreciation impairment Net Vessels Vessels, December 31, 2020 $ 2,250,053 $ (541,267) $ — $ 1,708,786 Additions (1) 14,065 — — 14,065 Drydock costs 4,235 — — 4,235 Disposals (2,641) 2,641 — — Depreciation and impairment for the period (2) — (99,559) (29,421) (128,980) Vessels, December 31, 2021 $ 2,265,712 $ (638,185) $ (29,421) $ 1,598,106 Additions 1,201 — — 1,201 Drydock costs 11,339 — — 11,339 Disposals (14,678) 14,678 — — Depreciation and impairment for the period — (51,996) — (51,996) Vessels, June 30, 2022 $ 2,263,573 $ (675,503) $ (29,421) $ 1,558,650 (1) During the scheduled second renewal survey drydocking of the Bodil Knutsen a ballast water treatment system was installed on the vessel. A Volatile Organic Compounds (VOC) recovery system was installed on the Bodil Knutsen during the fourth quarter of 2021. (2) The carrying value of the Windsor Knutsen was written down to its estimated fair value as of June 30, 2021 see Note 19 - Impairment of long-lived assets. Drydocking activity as of June 30, 2022 and December 31, 2021 is summarized as follows: (U.S. Dollars in thousands) At June 30, 2022 At December 31, 2021 Balance at the beginning of the year $ 13,458 $ 17,106 Costs incurred for dry docking 11,339 4,235 Costs allocated to drydocking as part of acquistion of asset — — Drydock amortization (3,864) (7,883) Balance at period end $ 20,933 $ 13,458 |
Intangible Assets and Contract
Intangible Assets and Contract Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Intangible Assets and Contract Liabilities | |
Intangible Assets and Contract Liabilities | 11) Intangible Assets and Contract Liabilities (a) Intangible assets Above market Above market time charter time charter Total (U.S. Dollars in thousands) Tordis Knutsen Vigdis Knutsen intangibles Intangibles, December 31, 2020 $ 305 $ 376 $ 681 Amortization for the period (305) (301) (606) Intangibles, December 31, 2021 $ — $ 75 $ 75 Amortization for the period — (75) (75) Intangibles, June 30, 2022 $ — $ — $ — The intangible for the above-market value of the time charter contract associated with the Tordis Knutsen Vigdis Knutsen (b) Contract Liabilities The unfavorable contractual rights for charters associated with Fortaleza Knutsen Recife Knutsen Fortaleza Knutsen Recife Knutsen Fortaleza Knutsen Recife Knutsen Amortization for Amortization for Balance as of the year ended Balance as of the six Months Balance as of December 31, December 31, December 31, ended June 30, June 30, (U.S. Dollars in thousands) 2020 2021 2021 2022 2022 Contract liabilities: Unfavourable contract rights $ (3,686) $ 1,517 $ (2,169) $ 759 $ (1,410) Total amortization income $ 1,517 $ 759 Accumulated amortization for contract liabilities was $16.8 million and $16.0 million as of June 30, 2022 and December 31, 2021, respectively. The amortization of contract liabilities that is classified under time charter and bareboat revenues for the next five years is expected to be as follows: (U.S. Dollars in thousands) Remainder of 2022 $ 759 2023 651 2024 — 2025 — 2026 — 2027 — Total $ 1,410 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Long-Term Debt | |
Long-Term Debt | 12) Long-Term Debt As of June 30, 2022 and December 31, 2021, the Partnership had the following debt amounts outstanding: June 30, December 31, (U.S. Dollars in thousands) Vessel 2022 2021 $345 million loan facility Anna Knutsen, Tordis Knutsen, Vigdis Knutsen, Brasil Knutsen, Lena Knutsen $ 326,178 $ 338,726 $320 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen, Fortaleza Knutsen, Recife Knutsen, Ingrid Knutsen 207,077 222,133 $55 million revolving credit facility 20,000 — Hilda loan facility Hilda Knutsen 69,231 72,308 Torill loan facility Torill Knutsen — 75,000 $172.5 million loan facility Dan Cisne, Dan Sabia 38,540 45,340 Tove loan facility Tove Knutsen 79,699 81,883 $25 million revolving credit facility with NTT 25,000 25,000 $25 million revolving credit facility with Shinsei 25,000 25,000 Raquel Sale & Leaseback Raquel Knutsen 86,783 89,206 Torill Sale & Leaseback Torill Knutsen 110,950 — Total long-term debt $ 988,458 $ 974,596 Less: current installments 92,847 90,956 Less: unamortized deferred loan issuance costs 2,325 2,378 Current portion of long-term debt 90,522 88,578 Amounts due after one year 895,611 883,640 Less: unamortized deferred loan issuance costs 4,520 5,092 Long-term debt, less current installments, and unamortized deferred loan issuance costs $ 891,091 $ 878,548 The Partnership’s outstanding debt of $988.5 million as of June 30, 2022 is repayable as follows: (U.S. Dollars in thousands) Sale & Leaseback Period repayment Balloon repayment Total Remainder of 2022 $ 6,439 $ 39,664 $ — $ 46,103 2023 13,161 73,101 245,906 332,168 2024 13,804 36,440 63,393 113,637 2025 14,399 28,372 65,506 108,277 2026 15,059 18,822 219,521 253,402 2027 and thereafter 134,871 — — 134,871 Total $ 197,733 $ 196,399 $ 594,326 $ 988,458 As of June 30, 2022, the interest rates on the Partnership’s loan agreements were LIBOR plus a fixed margin ranging from 1.75% to 2.40%. Torill Sale and Leaseback On June 30, 2022, the Partnership through its wholly-owned subsidiary, Knutsen Shuttle Tankers 15 AS, which owned the Torill Knutsen |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions | |
Related Party Transactions | 13) Related Party Transactions (a) Related Parties Net income (expense) from related parties included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 are as follows: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Statements of operations: Time charter and bareboat revenues: Time charter income from KNOT (1) $ 2,717 $ 1,866 $ 5,417 $ 1,866 Operating expenses: Vessel operating expenses (2) 5,053 5,000 8,153 7,752 Technical and operational management fee from KNOT to Vessels (3) 2,230 2,106 4,460 4,214 Operating expenses from other related parties (4) 180 172 367 299 General and administrative expenses: Administration fee from KNOT Management (5) 360 379 719 666 Administration fee from KOAS (5) 173 201 368 395 Administration fee from KOAS UK (5) 19 19 38 37 Administration and management fee from KNOT (6) 15 20 30 29 Total income (expenses) $ (5,313) $ (6,031) $ (8,718) $ (11,526) At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (7) $ 95 $ 134 Equipment purchased from KOAS (8) 565 1,840 Total $ 660 $ 1,974 (1) Time charter income from KNOT: After completing its drydock in the second quarter of 2021, the Bodil Knutsen has operated under a time charter with Knutsen Shuttle Tankers Pool AS. The charter expires in September 2022, with options to extend the time charter until June 2023. (2) Vessel operating expenses: KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing and crew training services. (3) Technical and operational management fee, from KNOT Management or KNOT Management Denmark to Vessels : KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational service. In addition, there is also a charge for 24-hour emergency response services provided by KNOT Management for all vessels managed by KNOT Management. (4) Operating expenses from other related parties : Simsea Real Operations AS, a company jointly owned by the Partnership’s Chairman of the Board, Trygve Seglem, and by other third-party shipping companies in Haugesund, provides simulation, operational training assessment and other certified maritime courses for seafarers. The cost is course fees for seafarers. Knutsen OAS Crewing AS, a subsidiary of TSSI, provides administrative services related to East European crew on vessels operating on time charter contracts. The cost is a fixed fee per each month per East European crew member onboard the vessel. (5) Administration fee from KNOT Management, Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. (“KOAS UK”) : Administration costs include compensation and benefits of KNOT Management’s management and administrative staff as well as other general and administration expenses. Some benefits are also provided by KOAS and KOAS UK. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. KNOT Management also charges each subsidiary a fixed annual fee for the preparation of the statutory financial statement. (6) Administration and management fee from KNOT Management and KNOT Management Denmark : For bareboat charters, the shipowner is not responsible for providing crewing or other operational services and the customer is responsible for all vessel operating expenses and voyage expenses. However, each of the vessels under bareboat charters is subject to a management and administration agreement with either KNOT Management or KNOT Management Denmark, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. (7) Drydocking supervision fee from KNOT and KOAS : KNOT and KOAS provide supervision and hire out service personnel during drydocking of the vessels. The fee is calculated as a daily fixed fee. (8) During the scheduled 15-year special survey drydocking of the Windsor Knutsen, a ballast water treatment system is being installed on the vessel. As per June 30, 2022 parts of the system were purchased from Knutsen Ballast Water AS, a subsidiary of TSSI, for $0.6 million. During the scheduled second renewal survey drydocking of the Bodil Knutsen a ballast water treatment system was installed on the vessel during the second quarter of 2021. Parts of the system were purchased from Knutsen Ballast Water AS, a subsidiary of TSSI, for $1.84 million. (b) Transactions with Management and Directors See the footnotes to Note 13(a)—Related Party Transactions for a discussion of transactions with management and directors included in the consolidated statements of operations. (c) Amounts Due from (to) Related Parties Balances with related parties consisted of the following: At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Trading balances due from KOAS $ 16 $ 290 Trading balances due from KNOT and affiliates 1,545 2,378 Amount due from related parties $ 1,561 $ 2,668 Trading balances due to KOAS $ 1,075 $ 1,205 Trading balances due to KNOT and affiliates 58 219 Amount due to related parties $ 1,133 $ 1,424 Amounts due from (to) related parties are unsecured and intended to be settled in the ordinary course of business.The majority of these related party transactions relate to vessel management and other fees due to KNOT, KNOT Management, KOAS UK and KOAS. (d) Trade accounts payable Trade accounts payable to related parties are included in total trade accounts payable in the balance sheet. The balances to related parties consisted of the following: At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Trading balances due to KOAS $ 763 $ 813 Trading balances due to KNOT and affiliates 641 783 Trade accounts payables to related parties $ 1,404 $ 1,596 Trading balances from KNOT and affiliates are included in other current assets in the balance sheet. The balances from related parties consisted of the following: At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Trading balances due from KOAS $ 761 $ 687 Trading balances due from KNOT and affiliates 392 543 Other current assets from related parties $ 1,153 $ 1,230 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 14) Commitments and Contingencies Assets Pledged As of June 30, 2022 and December 31, 2021, Vessels with a book value of $1,559 million and $1,598 million, respectively, were pledged as security held as guarantee for the Partnership’s long-term debt and interest rate swap obligations. See Note 7 - Derivative Instruments, Note 10 - Vessels and Equipment and Note 12 - Long-Term Debt. Claims and Legal Proceedings Under the Partnership’s time charters, claims to reduce the hire rate payments can be made if the Vessel does not perform to certain specifications in the agreements. No accrual for possible claims was recorded for the period ended June 30, 2022 or the year ended December 31, 2021. From time to time, the Partnership is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows. Insurance The Partnership maintains insurance on all the Vessels to insure against marine and war risks, which include damage to or total loss of the Vessels, subject to deductible amounts that average $0.15 million per Vessel, and loss of hire. Under the loss of hire policies, the insurer will pay compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. In addition, the Partnership maintains protection and indemnity insurance, which covers third-party legal liabilities arising in connection with the Vessels’ activities, including, among other things, the injury or death of third-party persons, loss or damage to cargo, claims arising from collisions with other vessels and other damage to other third-party property, including pollution arising from oil or other substances. This insurance is unlimited, except for pollution, which is limited to $1 billion per vessel per incident. The protection and indemnity insurance is maintained through a protection and indemnity association, and as a member of the association, the Partnership may be required to pay amounts above budgeted premiums if the member claims exceed association reserves, subject to certain reinsured amounts. If the Partnership experiences multiple claims each with individual deductibles, losses due to risks that are not insured or claims for insured risks that are not paid, it could have a material adverse effect on the Partnership’s results of operations and financial condition. See Note 5 - Insurance proceeds. |
Earnings per Unit and Cash Dist
Earnings per Unit and Cash Distributions | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per Unit and Cash Distributions | |
Earnings per Unit and Cash Distributions | 15) Earnings per Unit and Cash Distributions The calculations of basic and diluted earnings per unit (1) are presented below: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands, except per unit data) 2022 2021 2022 2021 Net income (loss) $ 9,888 $ (10,925) $ 36,668 $ 17,216 Less: Series A Preferred unitholders’ interest in net income 1,700 1,759 3,400 3,559 Net income attributable to the unitholders of KNOT Offshore Partners LP 8,188 (12,684) 33,268 13,657 Less: Distributions (2) 18,168 18,150 36,335 36,184 Under (over) distributed earnings (9,980) (30,834) (3,067) (22,527) Under (over) distributed earnings attributable to: Common unitholders (3) (9,665) (30,268) (2,967) (22,114) Class B unitholders (131) — (44) — General Partner (183) (566) (56) (413) Weighted average units outstanding (basic) (in thousands): Common unitholders 33,838 32,782 33,796 32,738 Class B unitholders 460 — 501 — General Partner 640 615 640 615 Weighted average units outstanding (diluted) (in thousands): Common unitholders (4) 37,772 36,619 37,730 36,594 Class B unitholders 460 — 501 — General Partner 640 615 640 615 Earnings per unit (basic) Common unitholders $ 0.23 $ (0.38) $ 0.95 $ 0.41 Class B unitholders 0.19 — 0.87 — General Partner 0.23 (0.38) 0.95 0.41 Earnings per unit (diluted): Common unitholders (4) $ 0.23 $ (0.38) $ 0.94 $ 0.41 Class B unitholders 0.19 — 0.87 — General Partner 0.23 (0.38) 0.95 0.41 Cash distributions declared and paid in the period per unit (5) 0.52 0.52 1.04 1.04 Subsequent event: Cash distributions declared and paid per unit relating to the period (6) 0.52 0.52 1.04 1.04 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership’s agreement of limited partnership (the “Partnership Agreement”). (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the record date. This included cash distributions to the IDR holder (KNOT) of $0.7 million and $1.4 million for three and six months ended June 30, 2021, respectively. There were no payments to the IDR holder (KNOT) for the three and six months ended June 30, 2022. (3) For the three and six months ended June 30, 2021, this included net income attributable to IDRs of $0.7 million and $1.4 million, respectively. (4) Diluted weighted average units outstanding and earnings per unit diluted for the three and six months ended June 30, 2022 and 2021 does not reflect any potential common shares relating to the convertible preferred units since the assumed issuance of any additional shares would be anti-dilutive. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to the period end. On May 27, 2021, Tortoise Direct Opportunities Fund LP, the holder of 416,677 of the Partnership’s Series A Preferred Units, sold 208,333 of its Series A Preferred Units to KNOT and converted 208,334 Series A Preferred Units to 215,292 common units based on a conversion rate of 1.0334. The Series A Preferred Units rank senior to the common units and Class B Units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up. The Series A Preferred Units have a liquidation preference of $24.00 per unit, plus any Series A unpaid cash distributions, plus all accrued but unpaid distributions on such Series A Preferred Unit with respect to the quarter in which the liquidation occurs to the date fixed for the payment of any amount upon liquidation. The Series A Preferred Units are entitled to cumulative distributions from their initial issuance date, with distributions being calculated at an annual rate of 8.0% on the stated liquidation preference and payable quarterly in arrears within 45 days after the end of each quarter, when, as and if declared by the Board. The Series A Preferred Units are generally convertible, at the option of the holders of the Series A Preferred Units, into common units at the applicable conversion rate. The conversion rate will be subject to adjustment under certain circumstances. In addition, the conversion rate will be redetermined on a quarterly basis, such that the conversion rate will be equal to $24.00 (the “Issue Price”) divided by the product of (x) the book value per common unit at the end of the immediately preceding quarter (pro-forma for per unit cash distributions payable with respect to such quarter) multiplied by (y) the quotient of (i) the Issue Price divided by (ii) the book value per common unit on February 2, 2017. In addition, the Partnership may redeem the Series A Preferred Units at any time until February 2, 2027 at the redemption price specified in the Partnership Agreement, provided, however, that upon notice from the Partnership to the holders of Series A Preferred Units of its intent to redeem, such holders may elect, instead, to convert their Series A Preferred Units into common units at the applicable conversion rate. Upon a change of control of the Partnership, the holders of Series A Preferred Units will have the right to require cash redemption at 100% of the Issue Price. In addition, the holders of Series A Preferred Units will have the right to cause the Partnership to redeem the Series A Preferred Units on February 2, 2027 in, at the option of the Partnership, (i) cash at a price equal to 70% of the Issue Price or (ii) common units such that each Series A Preferred Unit receives common units worth 80% of the Issue Price (based on the volume-weighted average trading price, as adjusted for splits, combinations and other similar transactions, of the common units as reported on the NYSE for the 30 trading day period ending on the fifth trading day immediately prior to the redemption date) plus any accrued and unpaid distributions. In addition, subject to certain conditions, the Partnership has the right to convert the Series A Preferred Units into common units at the applicable conversion rate if the aggregate market value (calculated as set forth in the partnership agreement) of the common units into which the outstanding Series A Preferred Units are convertible, based on the applicable conversion rate, is greater than 130% of the aggregate Issue Price of the outstanding Series A Preferred Units. The Series A Preferred Units have voting rights that are identical to the voting rights of the common units and Class B Units, except they do not have any right to nominate, appoint or elect any of the directors of the Board, except whenever distributions payable on the Series A Preferred Units have not been declared and paid for four consecutive quarters (a “Trigger Event”). Upon a Trigger Event, holders of Series A Preferred Units, together with the holders of any other series of preferred units upon which like rights have been conferred and are exercisable, may replace one of the members of the Board appointed by the General Partner with a person nominated by such holders, such nominee to serve until all accrued and unpaid distributions on the preferred units have been paid. The Series A Preferred Units are entitled to vote with the common units and Class B Units as a single class so that the Series A Preferred Units are entitled to one vote for each common unit into which the Series A Preferred Units are convertible at the time of voting. On September 7, 2021, the Partnership entered into an exchange agreement with its general partner and KNOT whereby KNOT contributed to the Partnership all of KNOT’s IDRs in exchange for the issuance by the Partnership to KNOT of 673,080 common units and 673,080 Class B Units, whereupon the IDRs were cancelled (the “IDR Exchange”). The IDR Exchange closed on September 10, 2021. The Class B Units are a new class of limited partner interests which are not entitled to receive cash distributions in any quarter unless common unitholders receive a distribution of at least $0.52 for such quarter (the “Distribution Threshold”). When common unitholders receive a quarterly distribution at least equal to the Distribution Threshold, then Class B unitholders will be entitled to receive the same distribution as common unitholders. For each quarter (starting with the quarter ended September 30, 2021) that the Partnership pays distributions on the common units that are at or above the Distribution Threshold, one After the payment of the Partnership’s quarterly cash distribution on August 11, 2022, with respect to the second quarter, 84,135 of the Class B Units converted to common units on a one-to-one basis. As of June 30, 2022, 71.7% of the Partnership’s total number of common units outstanding representing limited partner interests were held by the public (in the form of 24,293,458 common units) and 28.02% of such units were held directly by KNOT (in the form of 9,492,985 common units). In addition, KNOT, through its ownership of the General Partner, held a 1.8% general partner interest (in the form of 640,278 general partner units) and a 0.3% limited partner interest (in the form of 90,368 common units). As of June 30, 2022, KNOT also held 208,333 Series A Preferred Units and 420,675 Class B Units. Earnings per unit – basic is determined by dividing net income, after deducting the amount of net income attributable to the Series A Preferred Units and the distribution paid or to be made in relation to the period, by the weighted-average number of units outstanding during the applicable period. The computation of limited partners’ interest in net income per common unit – diluted assumes the issuance of common units for all potentially dilutive securities consisting of 3,541,666 Series A Preferred Units and 420,675 Class B Units as of June 30, 2022. Consequently, the net income attributable to limited partners’ interest is exclusive of any distributions on the Series A Preferred Units. In addition, the weighted average number of common units outstanding has been increased assuming the Series A Preferred Units and Class B Units have been converted to common units using the if-converted method. The computation of limited partners’ interest in net income per common unit – diluted does not assume the issuance of Series A Preferred Units and Class B Units if the effect would be anti-dilutive. The General Partner’s, Class B unitholders’ and common unitholders’ interest in net income was calculated as if all net income was distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income. Rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter less the amount of cash reserves established by the Board to provide for the proper conduct of the Partnership’s business, including reserves for future capital expenditures, anticipated credit needs and capital requirements and any accumulated distributions on, or redemptions of, the Series A Preferred Units. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains and losses on derivative instruments and unrealized foreign currency gains and losses. |
Unit Activity
Unit Activity | 6 Months Ended |
Jun. 30, 2022 | |
Unit Activity | |
Unit Activity | 16) Unit Activity The following table shows the movement in number of common units, Class B Units, general partner units and Series A Preferred Units from December 31, 2021 until June 30, 2022: Series A General Convertible (in units) Common Units Class B Units Partner Units Preferred Units December 31, 2021 33,708,541 588,945 640,278 3,541,666 February 12, 2022: Quarterly conversion of Class B Units 84,135 (84,135) — — May 12, 2022: Quarterly conversion of Class B Units 84,135 (84,135) — — June 30, 2022 33,876,811 420,675 640,278 3,541,666 On February 12, 2022, 84,135 Class B units were converted to common units on a one-to-one basis pursuant to the Partnership’s agreement. On May 12, 2022, 84,135 Class B units were converted to common units on a one-to-one basis pursuant to the Partnership’s agreement. |
Trade Accounts Receivable and O
Trade Accounts Receivable and Other Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Trade Accounts Receivable and Other Current Assets | |
Trade Accounts Receivable and Other Current Assets | 17) Trade Accounts Receivable and Other Current Assets (a) Trade Accounts Receivable Trade accounts receivables are presented net of provisions for expected credit loss. As of June 30, 2022 and December 31, 2021, there were no provision for expected credit loss. (b) Other Current Assets The following table presents other currents assets of June 30, 2022 and December 31, 2021: (U.S. Dollars in thousands) At June 30, 2022 At December 31, 2021 Insurance claims for recoveries $ 412 $ 124 Refund of value added tax 1,890 1,805 Prepaid expenses 1,452 1,158 Other receivables 7,878 2,539 Total other current assets $ 11,632 $ 5,626 |
Accrued expenses
Accrued expenses | 6 Months Ended |
Jun. 30, 2022 | |
Accrued expenses | |
Accrued expenses | 18) Accrued expenses The following table presents accrued expenses as of June 30, 2022 and December 31, 2021: At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Operating expenses $ 6,865 $ 4,290 Interest expenses 1,988 1,719 Other expenses 229 420 Total accrued expenses $ 9,082 $ 6,429 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 6 Months Ended |
Jun. 30, 2022 | |
Impairment of Long-Lived Assets | |
Impairment of Long-Lived Assets | 19) Impairment of Long-Lived Assets The carrying value of the Partnership’s fleet is regularly assessed as events or changes in circumstances may indicate that a vessel’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, and in such situation the carrying amount of the vessel is reduced to its estimated fair value. The Partnership considers factors related to vessel age, expected residual value, ongoing use of the vessels and equipment, shifts in market conditions and other impacting factors associated with the global oil and maritime transportation industries. This exercise in the second quarter of 2021 resulted in an impairment in respect of the Windsor Knutsen Windsor Knutsen Windsor Knutsen |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events | |
Subsequent Events | 20) Subsequent Events The Partnership has evaluated subsequent events from the balance sheet date through September 2, 2022, the date at which the unaudited condensed consolidated interim financial statements were available to be issued, and determined that there are no other items to disclose, except as follows: On July 1, 2022, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT Shuttle Tankers 35 AS (“KNOT 35”), the company that owns the shuttle tanker, Synnøve Knutsen Synnøve Knutsen The Synnøve Knutsen options On July 6, 2022, the charterer of the Hilda Knutsen On August 11, 2022, the Partnership paid a quarterly cash distribution of $0.52 per unit with respect to the quarter ended June 30, 2022 million. After the payment of the Partnership’s quarterly cash distribution on August 11, 2022 with respect to the second quarter, |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Preparation | (a) Basis of Preparation The accompanying unaudited condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of management of the Partnership, all adjustments considered necessary for a fair presentation, which are of normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The unaudited condensed consolidated financial statements do not include all the disclosures and information required for a complete set of annual financial statements; and, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2021, which are included in the Partnership’s Annual Report on Form 20-F (the “2021 20-F”). |
Significant Accounting Policies | (b) Significant Accounting Policies The accounting policies adopted in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those followed in the preparation of the Partnership’s audited consolidated financial statements for the year ended December 31, 2021, as contained in the Partnership’s 2021 20-F. |
Recent Accounting Pronouncements | (c) Recent Accounting Pronouncements Adoption of new accounting standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-06 Debt-Debt with conversion and other options (subtopic 470-20) and Derivatives and Hedging-contracts in entity’s own equity (subtopic 815-40): Accounting for convertible instruments and contracts in an entity’s own equity simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The new guidance eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features with respect to accounting for convertible instruments. Further the ASU simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Entities are required to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. The new guidance did not materially impact the Partnership. Accounting pronouncements not yet adopted In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides temporary optional expedients and exceptions to the guidance in US GAAP on contract modifications and hedge accounting, to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. For all types of hedging relationships, the guidance allows an entity to change the reference rate and other critical terms related to reference rate reform without having to dedesignate the relationship. The guidance is effective upon issuance through December 31, 2022. Although the Partnership does not apply hedge accounting, the Partnership has debt and interest rate swaps that reference LIBOR. The Partnership continues to evaluate the impact of the guidance on the consolidated financial statements as well as the commercial implications for the transition away from LIBOR, in particular through discussions with lenders and other market participants. Other recently issued accounting pronouncements are not expected to materially impact the Partnership. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information | |
Schedule consolidated revenues and percentages of revenues for customers | Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Eni Trading and Shipping S.p.A. $ 11,057 17 % $ 10,915 16 % $ 21,992 17 % $ 21,748 16 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 11,463 18 % 11,249 17 % 22,805 18 % 22,378 17 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 9,693 15 % 9,282 14 % 19,031 15 % 18,075 14 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 3,460 5 % 16,168 24 % 12,286 10 % 32,156 24 % Galp Sinopec Brasil Services B.V. 4,176 7 % 8,881 13 % 10,652 8 % 17,665 13 % |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Operating Leases | |
Schedule of Partnership's revenues by time charter and bareboat charters and other revenues | Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Time charter revenues (service element included) $ 52,324 $ 55,264 $ 106,170 $ 109,733 Bareboat revenues 11,463 11,249 22,805 22,378 Other revenues (loss of hire insurance recoveries and other income) 172 4,424 180 10,307 Total revenues $ 63,959 $ 70,937 $ 129,155 $ 142,418 |
Schedule of minimum contractual future revenues | (U.S. Dollars in thousands) 2022 (excluding the six months ended June 30, 2022) $ 93,758 2023 99,530 2024 106,541 2025 115,272 2026 52,405 2027 and thereafter 15,034 Total $ 482,540 |
Schedule of maturity analysis of partnership's lease liabilities | A maturity analysis of the Partnership’s lease liabilities from leased-in equipment as of June 30, 2022 is as follows: (U.S. Dollars in thousands) 2022 (excluding the six months ended June 30, 2022) 352 2023 $ 703 2024 703 2025 703 2026 59 2027 and thereafter — Total $ 2,520 Less imputed interest 101 Carrying value of operating lease liabilities $ 2,419 |
Other Finance Expenses (Tables)
Other Finance Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Finance Expenses | |
Schedule of components of interest cost | Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Interest expense $ 7,449 $ 6,148 $ 13,574 $ 12,418 Amortization of debt issuance cost and fair value of debt assumed 852 656 1,452 1,758 Total interest cost $ 8,301 $ 6,804 $ 15,026 $ 14,176 |
Schedule of components of other finance expense | Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Bank fees, charges $ (3) $ 132 $ 89 $ 215 Commitment fees 106 118 223 194 Total other finance expense $ 103 $ 250 $ 312 $ 409 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments | |
Schedule of realized and unrealized gains and losses recognized in earnings | Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Realized gain (loss): Interest rate swap contracts $ (1,550) $ (2,087) $ (3,402) $ (5,996) Foreign exchange forward contracts — — — — Total realized gain (loss): (1,550) (2,087) (3,402) (5,996) Unrealized gain (loss): Interest rate swap contracts 7,080 (178) 25,289 11,742 Foreign exchange forward contracts (414) — (414) — Total unrealized gain (loss): 6,666 (178) 24,875 11,742 Total realized and unrealized gain (loss) on derivative instruments: $ 5,116 $ (2,265) $ 21,473 $ 5,746 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Carrying amounts and estimated fair values of financial instruments | June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (U.S. Dollars in thousands) Amount Value Amount Value Financial assets: Cash and cash equivalents $ 88,474 $ 88,474 $ 62,293 $ 62,293 Current derivative assets: Interest rate swap contracts 4,480 4,480 — — Non-current derivative assets: Interest rate swap contracts 11,019 11,019 1,015 1,015 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 210 210 6,754 6,754 Foreign exchange forward contracts 414 414 — — Non-current derivative liabilities: Interest rate swap contracts — — 4,260 4,260 Long-term debt, current and non-current 988,458 988,458 974,596 974,596 |
Schedule of assets and liabilities measured at fair value on recurring basis | Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable June 30, Assets Inputs Inputs (U.S. Dollars in thousands) 2022 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 88,474 $ 88,474 $ — $ — Current derivative assets: Interest rate swap contracts 4,480 — 4,480 — Non-current derivative assets: Interest rate swap contracts 11,019 — 11,019 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 210 — 210 — Foreign exchange forward contracts 414 — 414 — Long-term debt, current and non-current 988,458 — 988,458 — Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2021 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 62,293 $ 62,293 $ — $ — Non-current derivative assets: Interest rate swap contracts 1,015 — 1,015 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 6,754 — 6,754 — Non-current derivative liabilities: Interest rate swap contracts 4,260 — 4,260 — Long-term debt, current and non-current 974,596 — 974,596 — |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes | |
Schedule of significant components of current and deferred Income tax expense attributable to Income from continuing operations | Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Income before income taxes $ 10,054 $ (10,664) $ 37,046 $ 17,480 Income tax (expense) (166) (261) (378) (264) Effective tax rate $ (2) % $ 2 % $ (1) % $ (2) % |
Schedule of taxation | Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Income tax benefit (expense) within Norway $ (163) $ (258) $ (375) $ (258) Income tax benefit (expense) within UK (3) (3) (3) (6) Income tax benefit (expense) $ (166) $ (261) $ (378) $ (264) Effective tax rate (2) % 2 % (1) % (2) % |
Vessels and Equipment (Tables)
Vessels and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Vessels and Equipment | |
Schedule of vessels and equipment | Vessels & Accumulated Accumulated (U.S. Dollars in thousands) equipment depreciation impairment Net Vessels Vessels, December 31, 2020 $ 2,250,053 $ (541,267) $ — $ 1,708,786 Additions (1) 14,065 — — 14,065 Drydock costs 4,235 — — 4,235 Disposals (2,641) 2,641 — — Depreciation and impairment for the period (2) — (99,559) (29,421) (128,980) Vessels, December 31, 2021 $ 2,265,712 $ (638,185) $ (29,421) $ 1,598,106 Additions 1,201 — — 1,201 Drydock costs 11,339 — — 11,339 Disposals (14,678) 14,678 — — Depreciation and impairment for the period — (51,996) — (51,996) Vessels, June 30, 2022 $ 2,263,573 $ (675,503) $ (29,421) $ 1,558,650 (1) During the scheduled second renewal survey drydocking of the Bodil Knutsen a ballast water treatment system was installed on the vessel. A Volatile Organic Compounds (VOC) recovery system was installed on the Bodil Knutsen during the fourth quarter of 2021. (2) The carrying value of the Windsor Knutsen was written down to its estimated fair value as of June 30, 2021 see Note 19 - Impairment of long-lived assets. |
Schedule of drydocking activity | (U.S. Dollars in thousands) At June 30, 2022 At December 31, 2021 Balance at the beginning of the year $ 13,458 $ 17,106 Costs incurred for dry docking 11,339 4,235 Costs allocated to drydocking as part of acquistion of asset — — Drydock amortization (3,864) (7,883) Balance at period end $ 20,933 $ 13,458 |
Intangible Assets and Contrac_2
Intangible Assets and Contract Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Intangible Assets and Contract Liabilities | |
Schedule of intangible assets | Above market Above market time charter time charter Total (U.S. Dollars in thousands) Tordis Knutsen Vigdis Knutsen intangibles Intangibles, December 31, 2020 $ 305 $ 376 $ 681 Amortization for the period (305) (301) (606) Intangibles, December 31, 2021 $ — $ 75 $ 75 Amortization for the period — (75) (75) Intangibles, June 30, 2022 $ — $ — $ — |
Schedule of contract liabilities | Amortization for Amortization for Balance as of the year ended Balance as of the six Months Balance as of December 31, December 31, December 31, ended June 30, June 30, (U.S. Dollars in thousands) 2020 2021 2021 2022 2022 Contract liabilities: Unfavourable contract rights $ (3,686) $ 1,517 $ (2,169) $ 759 $ (1,410) Total amortization income $ 1,517 $ 759 |
Schedule of expected amortization of contract liabilities | (U.S. Dollars in thousands) Remainder of 2022 $ 759 2023 651 2024 — 2025 — 2026 — 2027 — Total $ 1,410 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Long-Term Debt | |
Schedule of long-term debt | June 30, December 31, (U.S. Dollars in thousands) Vessel 2022 2021 $345 million loan facility Anna Knutsen, Tordis Knutsen, Vigdis Knutsen, Brasil Knutsen, Lena Knutsen $ 326,178 $ 338,726 $320 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen, Fortaleza Knutsen, Recife Knutsen, Ingrid Knutsen 207,077 222,133 $55 million revolving credit facility 20,000 — Hilda loan facility Hilda Knutsen 69,231 72,308 Torill loan facility Torill Knutsen — 75,000 $172.5 million loan facility Dan Cisne, Dan Sabia 38,540 45,340 Tove loan facility Tove Knutsen 79,699 81,883 $25 million revolving credit facility with NTT 25,000 25,000 $25 million revolving credit facility with Shinsei 25,000 25,000 Raquel Sale & Leaseback Raquel Knutsen 86,783 89,206 Torill Sale & Leaseback Torill Knutsen 110,950 — Total long-term debt $ 988,458 $ 974,596 Less: current installments 92,847 90,956 Less: unamortized deferred loan issuance costs 2,325 2,378 Current portion of long-term debt 90,522 88,578 Amounts due after one year 895,611 883,640 Less: unamortized deferred loan issuance costs 4,520 5,092 Long-term debt, less current installments, and unamortized deferred loan issuance costs $ 891,091 $ 878,548 |
Schedule of partnership's outstanding debt repayable | (U.S. Dollars in thousands) Sale & Leaseback Period repayment Balloon repayment Total Remainder of 2022 $ 6,439 $ 39,664 $ — $ 46,103 2023 13,161 73,101 245,906 332,168 2024 13,804 36,440 63,393 113,637 2025 14,399 28,372 65,506 108,277 2026 15,059 18,822 219,521 253,402 2027 and thereafter 134,871 — — 134,871 Total $ 197,733 $ 196,399 $ 594,326 $ 988,458 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions | |
Schedule of Related Party Costs and Expenses | Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2022 2021 2022 2021 Statements of operations: Time charter and bareboat revenues: Time charter income from KNOT (1) $ 2,717 $ 1,866 $ 5,417 $ 1,866 Operating expenses: Vessel operating expenses (2) 5,053 5,000 8,153 7,752 Technical and operational management fee from KNOT to Vessels (3) 2,230 2,106 4,460 4,214 Operating expenses from other related parties (4) 180 172 367 299 General and administrative expenses: Administration fee from KNOT Management (5) 360 379 719 666 Administration fee from KOAS (5) 173 201 368 395 Administration fee from KOAS UK (5) 19 19 38 37 Administration and management fee from KNOT (6) 15 20 30 29 Total income (expenses) $ (5,313) $ (6,031) $ (8,718) $ (11,526) At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (7) $ 95 $ 134 Equipment purchased from KOAS (8) 565 1,840 Total $ 660 $ 1,974 (1) Time charter income from KNOT: After completing its drydock in the second quarter of 2021, the Bodil Knutsen has operated under a time charter with Knutsen Shuttle Tankers Pool AS. The charter expires in September 2022, with options to extend the time charter until June 2023. (2) Vessel operating expenses: KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing and crew training services. (3) Technical and operational management fee, from KNOT Management or KNOT Management Denmark to Vessels : KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational service. In addition, there is also a charge for 24-hour emergency response services provided by KNOT Management for all vessels managed by KNOT Management. (4) Operating expenses from other related parties : Simsea Real Operations AS, a company jointly owned by the Partnership’s Chairman of the Board, Trygve Seglem, and by other third-party shipping companies in Haugesund, provides simulation, operational training assessment and other certified maritime courses for seafarers. The cost is course fees for seafarers. Knutsen OAS Crewing AS, a subsidiary of TSSI, provides administrative services related to East European crew on vessels operating on time charter contracts. The cost is a fixed fee per each month per East European crew member onboard the vessel. (5) Administration fee from KNOT Management, Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. (“KOAS UK”) : Administration costs include compensation and benefits of KNOT Management’s management and administrative staff as well as other general and administration expenses. Some benefits are also provided by KOAS and KOAS UK. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. KNOT Management also charges each subsidiary a fixed annual fee for the preparation of the statutory financial statement. (6) Administration and management fee from KNOT Management and KNOT Management Denmark : For bareboat charters, the shipowner is not responsible for providing crewing or other operational services and the customer is responsible for all vessel operating expenses and voyage expenses. However, each of the vessels under bareboat charters is subject to a management and administration agreement with either KNOT Management or KNOT Management Denmark, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. (7) Drydocking supervision fee from KNOT and KOAS : KNOT and KOAS provide supervision and hire out service personnel during drydocking of the vessels. The fee is calculated as a daily fixed fee. (8) During the scheduled 15-year special survey drydocking of the Windsor Knutsen, a ballast water treatment system is being installed on the vessel. As per June 30, 2022 parts of the system were purchased from Knutsen Ballast Water AS, a subsidiary of TSSI, for $0.6 million. During the scheduled second renewal survey drydocking of the Bodil Knutsen a ballast water treatment system was installed on the vessel during the second quarter of 2021. Parts of the system were purchased from Knutsen Ballast Water AS, a subsidiary of TSSI, for $1.84 million. |
Schedule of amounts due from and due to related parties | At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Trading balances due from KOAS $ 16 $ 290 Trading balances due from KNOT and affiliates 1,545 2,378 Amount due from related parties $ 1,561 $ 2,668 Trading balances due to KOAS $ 1,075 $ 1,205 Trading balances due to KNOT and affiliates 58 219 Amount due to related parties $ 1,133 $ 1,424 |
Schedule of Trade Accounts Payable to Related Parties | At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Trading balances due to KOAS $ 763 $ 813 Trading balances due to KNOT and affiliates 641 783 Trade accounts payables to related parties $ 1,404 $ 1,596 |
Schedule of other current asset balances from related parties | At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Balance Sheet: Trading balances due from KOAS $ 761 $ 687 Trading balances due from KNOT and affiliates 392 543 Other current assets from related parties $ 1,153 $ 1,230 |
Earnings per Unit and Cash Di_2
Earnings per Unit and Cash Distributions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per Unit and Cash Distributions | |
Schedule of calculations of basic and diluted earnings per unit | Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands, except per unit data) 2022 2021 2022 2021 Net income (loss) $ 9,888 $ (10,925) $ 36,668 $ 17,216 Less: Series A Preferred unitholders’ interest in net income 1,700 1,759 3,400 3,559 Net income attributable to the unitholders of KNOT Offshore Partners LP 8,188 (12,684) 33,268 13,657 Less: Distributions (2) 18,168 18,150 36,335 36,184 Under (over) distributed earnings (9,980) (30,834) (3,067) (22,527) Under (over) distributed earnings attributable to: Common unitholders (3) (9,665) (30,268) (2,967) (22,114) Class B unitholders (131) — (44) — General Partner (183) (566) (56) (413) Weighted average units outstanding (basic) (in thousands): Common unitholders 33,838 32,782 33,796 32,738 Class B unitholders 460 — 501 — General Partner 640 615 640 615 Weighted average units outstanding (diluted) (in thousands): Common unitholders (4) 37,772 36,619 37,730 36,594 Class B unitholders 460 — 501 — General Partner 640 615 640 615 Earnings per unit (basic) Common unitholders $ 0.23 $ (0.38) $ 0.95 $ 0.41 Class B unitholders 0.19 — 0.87 — General Partner 0.23 (0.38) 0.95 0.41 Earnings per unit (diluted): Common unitholders (4) $ 0.23 $ (0.38) $ 0.94 $ 0.41 Class B unitholders 0.19 — 0.87 — General Partner 0.23 (0.38) 0.95 0.41 Cash distributions declared and paid in the period per unit (5) 0.52 0.52 1.04 1.04 Subsequent event: Cash distributions declared and paid per unit relating to the period (6) 0.52 0.52 1.04 1.04 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership’s agreement of limited partnership (the “Partnership Agreement”). (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the record date. This included cash distributions to the IDR holder (KNOT) of $0.7 million and $1.4 million for three and six months ended June 30, 2021, respectively. There were no payments to the IDR holder (KNOT) for the three and six months ended June 30, 2022. (3) For the three and six months ended June 30, 2021, this included net income attributable to IDRs of $0.7 million and $1.4 million, respectively. (4) Diluted weighted average units outstanding and earnings per unit diluted for the three and six months ended June 30, 2022 and 2021 does not reflect any potential common shares relating to the convertible preferred units since the assumed issuance of any additional shares would be anti-dilutive. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to the period end. |
Unit activity (Tables)
Unit activity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Unit Activity | |
Schedule of movement in number of common units, general partner units and Series A Preferred Units | The following table shows the movement in number of common units, Class B Units, general partner units and Series A Preferred Units from December 31, 2021 until June 30, 2022: Series A General Convertible (in units) Common Units Class B Units Partner Units Preferred Units December 31, 2021 33,708,541 588,945 640,278 3,541,666 February 12, 2022: Quarterly conversion of Class B Units 84,135 (84,135) — — May 12, 2022: Quarterly conversion of Class B Units 84,135 (84,135) — — June 30, 2022 33,876,811 420,675 640,278 3,541,666 |
Trade Accounts Receivable and_2
Trade Accounts Receivable and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Trade Accounts Receivable and Other Current Assets | |
Schedule of Other Current Assets | (U.S. Dollars in thousands) At June 30, 2022 At December 31, 2021 Insurance claims for recoveries $ 412 $ 124 Refund of value added tax 1,890 1,805 Prepaid expenses 1,452 1,158 Other receivables 7,878 2,539 Total other current assets $ 11,632 $ 5,626 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued expenses | |
Schedule of accrued expenses | At June 30, At December 31, (U.S. Dollars in thousands) 2022 2021 Operating expenses $ 6,865 $ 4,290 Interest expenses 1,988 1,719 Other expenses 229 420 Total accrued expenses $ 9,082 $ 6,429 |
Description of Business (Detail
Description of Business (Details) $ in Millions | 1 Months Ended | |||
Apr. 30, 2013 item | Sep. 02, 2022 USD ($) | Jun. 30, 2022 item | Jun. 30, 2021 item | |
Ownership interest in shuttle tankers acquired at formation (as a percent) | 100% | |||
Number of shuttle tankers acquired at formation | 4 | |||
Number of operating vessels | 17 | 17 | ||
Subsequent event | ||||
Undrawn portion of revolving credit facilities | $ | $ 35 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) item | Jun. 30, 2022 USD ($) item segment | Jun. 30, 2021 USD ($) item | |
Segment Information | ||||
Revenues | $ 63,959 | $ 70,937 | $ 129,155 | $ 142,418 |
Number Of Vessels | item | 17 | 17 | 17 | 17 |
Number of reportable segments | segment | 1 | |||
Eni Trading and Shipping S.p.A. | ||||
Segment Information | ||||
Revenues | $ 11,057 | $ 10,915 | $ 21,992 | $ 21,748 |
Fronape International Company, a subsidiary of Petrobras Transporte S.A. | ||||
Segment Information | ||||
Revenues | 11,463 | 11,249 | 22,805 | 22,378 |
Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. | ||||
Segment Information | ||||
Revenues | 9,693 | 9,282 | 19,031 | 18,075 |
Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell | ||||
Segment Information | ||||
Revenues | 3,460 | 16,168 | 12,286 | 32,156 |
Galp Sinopec Brasil Services B.V. | ||||
Segment Information | ||||
Revenues | $ 4,176 | $ 8,881 | $ 10,652 | $ 17,665 |
Revenues [Member] | Eni Trading and Shipping S.p.A. | Customer Concentration Risk [Member] | ||||
Segment Information | ||||
Benchmark percentage of revenues and combined revenues concentration | 17% | 16% | 17% | 16% |
Revenues [Member] | Fronape International Company, a subsidiary of Petrobras Transporte S.A. | Customer Concentration Risk [Member] | ||||
Segment Information | ||||
Benchmark percentage of revenues and combined revenues concentration | 18% | 17% | 18% | 17% |
Revenues [Member] | Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. | Customer Concentration Risk [Member] | ||||
Segment Information | ||||
Benchmark percentage of revenues and combined revenues concentration | 15% | 14% | 15% | 14% |
Revenues [Member] | Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell | Customer Concentration Risk [Member] | ||||
Segment Information | ||||
Benchmark percentage of revenues and combined revenues concentration | 5% | 24% | 10% | 24% |
Revenues [Member] | Galp Sinopec Brasil Services B.V. | Customer Concentration Risk [Member] | ||||
Segment Information | ||||
Benchmark percentage of revenues and combined revenues concentration | 7% | 13% | 8% | 13% |
Minimum | Revenues [Member] | Customer Concentration Risk [Member] | ||||
Segment Information | ||||
Benchmark percentage of revenues and combined revenues concentration | 10% | 10% | 10% | 10% |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Leases | ||||
Revenue from contract with customers | $ 63,788 | $ 66,513 | $ 128,975 | $ 132,111 |
Other revenues (loss of hire insurance recoveries and other income) | 172 | 4,424 | 180 | 10,307 |
Total revenues | 63,959 | 70,937 | 129,155 | 142,418 |
Time charter revenues (service element included) | ||||
Operating Leases | ||||
Revenue from contract with customers | 52,324 | 55,264 | 106,170 | 109,733 |
Bareboat revenues | ||||
Operating Leases | ||||
Revenue from contract with customers | $ 11,463 | $ 11,249 | $ 22,805 | $ 22,378 |
Operating Leases - Minimum Cont
Operating Leases - Minimum Contractual Future Revenues (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Minimum contractual future revenues | |
2022 (excluding the six months ended June 30, 2022) | $ 93,758 |
2023 | 99,530 |
2024 | 106,541 |
2025 | 115,272 |
2026 | 52,405 |
2027 and thereafter | 15,034 |
Total | $ 482,540 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Fortaleza Knutsen | |
Operating Leases | |
Current bareboat charter expiration year | 2023 |
Recife Knutsen | |
Operating Leases | |
Current bareboat charter expiration year | 2023 |
Bodil Knutsen [Member] | |
Operating Leases | |
Time charter expiration year under options to extend | 2024 |
Windsor Knutsen [Member] | |
Operating Leases | |
Current time charter expiration year | 2023 |
Carmen Knutsen [Member] | |
Operating Leases | |
Current time charter expiration year | 2023 |
Time charter expiration year under options to extend | 2026 |
Hilda Knutsen | |
Operating Leases | |
Current time charter expiration year | 2013 |
Time charter expiration year under options to extend | 2022 |
Torill Knutsen [Member] | |
Operating Leases | |
Current time charter expiration year | 2022 |
Time charter expiration year under options to extend | 2024 |
Dan Cisne [Member] | |
Operating Leases | |
Current bareboat charter expiration year | 2023 |
Dan Sabia [Member] | |
Operating Leases | |
Current bareboat charter expiration year | 2024 |
Ingrid Knutsen [Member] | |
Operating Leases | |
Current time charter expiration year | 2022 |
Time charter expiration year under options to extend | 2024 |
Raquel Knutsen [Member] | |
Operating Leases | |
Current time charter expiration year | 2025 |
Time charter expiration year under options to extend | 2030 |
Tordis Knutsen [Member] | |
Operating Leases | |
Fixed term of contract | 3 years |
Current time charter expiration year | 2022 |
Time charter expiration year under options to extend | 2023 |
Vigdis Knutsen | |
Operating Leases | |
Fixed term of contract | 3 years |
Current time charter expiration year | 2023 |
Time charter expiration year under options to extend | 2023 |
Lena Knutsen [Member] | |
Operating Leases | |
Fixed term of contract | 3 years |
Time charter expiration year under options to extend | 2023 |
Brasil Knutsen | |
Operating Leases | |
Current time charter expiration year | 2022 |
Time charter expiration year under options to extend | 2022 |
Anna Knutsen [Member] | |
Operating Leases | |
Current time charter expiration year | 2024 |
Tove Knutsens [Member] | |
Operating Leases | |
Current time charter expiration year | 2027 |
Time charter expiration year under options to extend | 2040 |
Operating Leases - Lease obliga
Operating Leases - Lease obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Operating Leases | |||
Right-of-use assets (Note 4) | $ 2,419 | $ 2,419 | $ 2,742 |
Lease liability | $ 2,419 | $ 2,419 | |
Weighted average discount rate (as a percent) | 2.30% | 2.30% | |
Weighted average remaining lease term | 3 years 7 months 6 days | 3 years 7 months 6 days | |
Operating lease payments | $ 200 | $ 400 | |
Partnership's lease liabilities from leased-in equipment | |||
2022 (excluding the six months ended June 30, 2022) | 352 | 352 | |
2023 | 703 | 703 | |
2024 | 703 | 703 | |
2025 | 703 | 703 | |
2026 | 59 | 59 | |
Total | 2,520 | 2,520 | |
Less imputed interest | 101 | 101 | |
Carrying value of operating lease liabilities | $ 2,419 | $ 2,419 |
Insurance proceeds (Details)
Insurance proceeds (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2022 | Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Insurance Proceeds | |||||||
Deductible period under business interruption insurance | 14 days | ||||||
Loss of hire insurance payments recorded as a component of total revenues | $ 4,397 | $ 10,279 | |||||
Net vessel operating expense | $ 23,024 | 17,394 | $ 43,085 | 35,954 | |||
Windsor Knutsen [Member] | |||||||
Insurance Proceeds | |||||||
Deductible period under business interruption insurance | 14 days | ||||||
Loss of hire insurance payments recorded as a component of total revenues | 3,700 | 8,700 | |||||
Amount of claimed and received payments | $ 4,100 | ||||||
Windsor Knutsen [Member] | Maximum | |||||||
Insurance Proceeds | |||||||
Deductible period under business interruption insurance | 180 days | ||||||
Tove Knutsen [Member] | |||||||
Insurance Proceeds | |||||||
Loss of hire insurance payments recorded as a component of total revenues | $ 700 | $ 1,500 | |||||
Amount of claimed and received payments | 100 | ||||||
Bodil Knutsen [Member] | |||||||
Insurance Proceeds | |||||||
Amount of claimed and received payments | $ 100 | ||||||
Vigdis Knutsen | |||||||
Insurance Proceeds | |||||||
Amount of claimed and received payments | $ 400 | ||||||
Amount claimed for insurance | $ 400 | $ 400 |
Other Finance Expenses - Compon
Other Finance Expenses - Components Interest Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Finance Expenses | ||||
Interest expense | $ 7,449 | $ 6,148 | $ 13,574 | $ 12,418 |
Amortization of debt issuance cost and fair value of debt assumed | 852 | 656 | 1,452 | 1,758 |
Total interest cost | $ 8,301 | $ 6,804 | $ 15,026 | $ 14,176 |
Other Finance Expenses - Comp_2
Other Finance Expenses - Components of other finance expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Finance Expenses | ||||
Bank fees, charges | $ (3) | $ 132 | $ 89 | $ 215 |
Commitment fees | 106 | 118 | 223 | 194 |
Total other finance expense | $ 103 | $ 250 | $ 312 | $ 409 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) kr in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 NOK (kr) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 NOK (kr) | |
Interest Rate Swap Contracts [Member] | ||||
Derivative Instruments | ||||
Notional amount | $ 415.8 | $ 462.3 | ||
Carrying amount of derivative liabilities | $ 10 | |||
Carrying amount of derivative asset | 15.3 | |||
Foreign Exchange Forward Contracts [Member] | ||||
Derivative Instruments | ||||
Notional amount | kr | kr 0.4 | kr 0 | ||
Carrying amount of derivative liabilities | $ 0.4 |
Derivative Instruments - Realiz
Derivative Instruments - Realized and Unrealized Gains and Losses Recognized in Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net gain (loss) on derivative instruments | ||||
Realized gain (loss) | $ (1,550) | $ (2,087) | $ (3,402) | $ (5,996) |
Unrealized gain (loss) | 6,666 | (178) | 24,875 | 11,742 |
Total realized and unrealized gain (loss) on derivative instruments | 5,116 | (2,265) | 21,473 | 5,746 |
Interest Rate Swap Contracts [Member] | ||||
Net gain (loss) on derivative instruments | ||||
Realized gain (loss) | (1,550) | (2,087) | (3,402) | (5,996) |
Unrealized gain (loss) | 7,080 | $ (178) | 25,289 | $ 11,742 |
Foreign Exchange Forward Contracts [Member] | ||||
Net gain (loss) on derivative instruments | ||||
Unrealized gain (loss) | $ (414) | $ (414) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Current derivative assets | $ 4,480 | |
Non-current derivative assets | 11,019 | $ 1,015 |
Financial liabilities: | ||
Current derivative liabilities | 624 | 6,754 |
Non-current derivative liabilities | 4,260 | |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 88,474 | 62,293 |
Financial liabilities: | ||
Long-term debt, current and non-current | 988,458 | 974,596 |
Carrying Amount [Member] | Interest Rate Swap Contracts [Member] | ||
Financial assets: | ||
Current derivative assets | 4,480 | |
Non-current derivative assets | 11,019 | 1,015 |
Financial liabilities: | ||
Current derivative liabilities | 210 | 6,754 |
Non-current derivative liabilities | 4,260 | |
Carrying Amount [Member] | Foreign Exchange Forward Contracts [Member] | ||
Financial liabilities: | ||
Current derivative liabilities | 414 | |
Non-current derivative liabilities | 414 | |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 88,474 | 62,293 |
Financial liabilities: | ||
Long-term debt, current and non-current | 988,458 | 974,596 |
Fair Value [Member] | Interest Rate Swap Contracts [Member] | ||
Financial assets: | ||
Current derivative assets | 4,480 | |
Non-current derivative assets | 11,019 | 1,015 |
Financial liabilities: | ||
Current derivative liabilities | 210 | 6,754 |
Non-current derivative liabilities | $ 4,260 | |
Fair Value [Member] | Foreign Exchange Forward Contracts [Member] | ||
Financial liabilities: | ||
Current derivative liabilities | $ 414 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, assets and liabilities measured on recurring and nonrecurring basis | ||
Deferred debt issuance cost | $ 6,800,000 | $ 7,500,000 |
Restricted cash | $ 0 | $ 0 |
Interest Rate Swap Contracts [Member] | ||
Fair Value, assets and liabilities measured on recurring and nonrecurring basis | ||
Weighted average remaining terms | 3 years 2 months 12 days | 3 years 4 months 24 days |
Interest Rate Swap Contracts [Member] | Minimum | ||
Fair Value, assets and liabilities measured on recurring and nonrecurring basis | ||
Notional amount per contract | $ 4,400,000 | $ 5,300,000 |
Fixed interest rate | 0.71% | 0.71% |
Interest Rate Swap Contracts [Member] | Maximum | ||
Fair Value, assets and liabilities measured on recurring and nonrecurring basis | ||
Notional amount per contract | $ 35,000,000 | $ 37,500,000 |
Fixed interest rate | 2.90% | 2.90% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | |||
Current derivative assets | $ 4,480 | ||
Non-current derivative assets | 11,019 | $ 1,015 | |
Financial liabilities: | |||
Current derivative liabilities | 624 | 6,754 | |
Non-current derivative liabilities | 4,260 | ||
Vessels | 1,558,650 | 1,598,106 | $ 1,708,786 |
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 88,474 | 62,293 | |
Financial liabilities: | |||
Long-term debt, current and non-current | 988,458 | 974,596 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 88,474 | 62,293 | |
Financial liabilities: | |||
Long-term debt, current and non-current | 988,458 | 974,596 | |
Foreign Exchange Forward Contracts [Member] | Carrying Amount [Member] | |||
Financial liabilities: | |||
Current derivative liabilities | 414 | ||
Non-current derivative liabilities | 414 | ||
Foreign Exchange Forward Contracts [Member] | Fair Value [Member] | |||
Financial liabilities: | |||
Current derivative liabilities | 414 | ||
Interest Rate Swap Contracts [Member] | Carrying Amount [Member] | |||
Financial assets: | |||
Current derivative assets | 4,480 | ||
Non-current derivative assets | 11,019 | 1,015 | |
Financial liabilities: | |||
Current derivative liabilities | 210 | 6,754 | |
Non-current derivative liabilities | 4,260 | ||
Interest Rate Swap Contracts [Member] | Fair Value [Member] | |||
Financial assets: | |||
Current derivative assets | 4,480 | ||
Non-current derivative assets | 11,019 | 1,015 | |
Financial liabilities: | |||
Current derivative liabilities | 210 | 6,754 | |
Non-current derivative liabilities | 4,260 | ||
Quoted Price in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 88,474 | 62,293 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | |||
Financial liabilities: | |||
Long-term debt, current and non-current | 988,458 | 974,596 | |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Forward Contracts [Member] | Fair Value [Member] | |||
Financial liabilities: | |||
Non-current derivative liabilities | 414 | ||
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap Contracts [Member] | Fair Value [Member] | |||
Financial assets: | |||
Current derivative assets | 4,480 | ||
Non-current derivative assets | 11,019 | 1,015 | |
Financial liabilities: | |||
Current derivative liabilities | $ 210 | 6,754 | |
Non-current derivative liabilities | $ 4,260 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value transfers into or out of Level 1, Level 2 or Level 3 (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value Measurements | ||
Transfers amount Fair value assets level 1 to level 2 | $ 0 | $ 0 |
Transfers amount Fair value assets level 2 to level 1 | 0 | 0 |
Transfers amount Fair value liabilities level 1 to level 2 | 0 | 0 |
Transfers amount Fair value liabilities level 2 to level 1 | 0 | 0 |
Transfers amount Fair value assets level 3 to level 1 | 0 | 0 |
Transfers amount Fair value liabilities level 3 to level 2 | $ 0 | $ 0 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes | ||||
Income before income taxes | $ 10,054 | $ (10,664) | $ 37,046 | $ 17,480 |
Income tax benefit (expense) | $ 166 | $ 261 | $ 378 | $ 264 |
Effective tax rate | (2.00%) | 2% | (1.00%) | (2.00%) |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2022 | Jan. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2017 | Mar. 31, 2013 | |
Income Tax Rate Reconciliation | |||||||||
Entrance tax | $ 3,000 | ||||||||
Entrance tax, annual decline in gain | 20% | ||||||||
Income tax rate, deferred tax liabilities | 22% | 22% | |||||||
Entrance tax payable, current | $ 100 | $ 100 | |||||||
Entrance tax payable, non current | $ 200 | $ 200 | |||||||
Entrance tax payable related to acquisition | $ 100 | ||||||||
Deferred tax assets recognized | $ 0 | $ 0 | |||||||
Norwegian Ordinary Tax Regime [Member] | |||||||||
Income Tax Rate Reconciliation | |||||||||
Ordinary income tax rate | 22% |
Income Taxes - Summary of Taxat
Income Taxes - Summary of Taxation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Rate Reconciliation | ||||
Income tax benefit (expense) | $ (166) | $ (261) | $ (378) | $ (264) |
Effective tax rate | (2.00%) | 2% | (1.00%) | (2.00%) |
Norway | ||||
Income Tax Rate Reconciliation | ||||
Income tax benefit (expense) | $ (163) | $ (258) | $ (375) | $ (258) |
UK tax | ||||
Income Tax Rate Reconciliation | ||||
Income tax benefit (expense) | $ (3) | $ (3) | $ (3) | $ (6) |
Vessels and Equipment - Pledged
Vessels and Equipment - Pledged Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Vessels and Equipment | ||
Book value of assets pledged as security for long-term debt | $ 1,559 | $ 1,598 |
Vessels and Equipment - Long-Te
Vessels and Equipment - Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Vessels & equipment - Activity | |||||
Vessels and equipment, beginning balance | $ 2,265,712 | $ 2,250,053 | $ 2,250,053 | ||
Additions | 1,201 | 14,065 | |||
Drydock costs | 11,339 | 4,235 | |||
Disposals | (14,678) | (2,641) | |||
Vessels and equipment, ending balance | $ 2,263,573 | 2,263,573 | 2,265,712 | ||
Accumulated depreciation - Activity | |||||
Accumulated depreciation, beginning balance | (638,185) | (541,267) | (541,267) | ||
Accumulated depreciation, disposals | 14,678 | 2,641 | |||
Depreciation and impairment for the period | (26,059) | $ (23,831) | (51,996) | (47,515) | (99,559) |
Accumulated depreciation, ending balance | (675,503) | (675,503) | (638,185) | ||
Accumulated impairment - Activity | |||||
Accumulated impairment, beginning balance | (29,421) | ||||
Depreciation and impairment for the period | $ (29,421) | (29,421) | (29,421) | ||
Accumulated impairment, ending balance | (29,421) | (29,421) | (29,421) | ||
Net Vessels - Activity | |||||
Net vessel, beginning balance | 1,598,106 | $ 1,708,786 | 1,708,786 | ||
Additions | 1,201 | 14,065 | |||
Drydock costs | 11,339 | 4,235 | |||
Depreciation and impairment for the period | (51,996) | (128,980) | |||
Net vessel, ending balance | $ 1,558,650 | $ 1,558,650 | $ 1,598,106 |
Vessels and Equipment - Drydock
Vessels and Equipment - Drydocking Activity (Details) - Vessels & Equipment - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Movement in Capitalized Drydocking Costs [Roll Forward] | ||
Balance at the beginning of the year | $ 13,458 | $ 17,106 |
Costs incurred for drydocking | 11,339 | 4,235 |
Drydock amortization | (3,864) | (7,883) |
Balance at period end | $ 20,933 | $ 13,458 |
Intangible Assets and Contrac_3
Intangible Assets and Contract Liabilities - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Intangible Assets | ||
Intangibles assets, beginning balance | $ 75 | $ 681 |
Amortization for the period | (75) | (606) |
Intangibles assets, ending balance | 75 | |
Above Market Value Of Time Charter [Member] | Tordis Knutsen [Member] | ||
Intangible Assets | ||
Intangibles assets, beginning balance | 305 | |
Amortization for the period | (305) | |
Above Market Value Of Time Charter [Member] | Vigdis Knutsen | ||
Intangible Assets | ||
Intangibles assets, beginning balance | 75 | 376 |
Amortization for the period | $ (75) | (301) |
Intangibles assets, ending balance | $ 75 |
Intangible Assets and Contrac_4
Intangible Assets and Contract Liabilities - Additional information (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Aug. 31, 2011 | Mar. 31, 2011 | Jun. 30, 2022 | Dec. 31, 2021 | |
Intangible Assets | ||||
Accumulated amortization for contract liabilities | $ 16.8 | $ 16 | ||
Recife Knutsen | ||||
Intangible Assets | ||||
Period for amortization of unfavorable contractual rights | 12 years | |||
Fortaleza Knutsen | ||||
Intangible Assets | ||||
Period for amortization of unfavorable contractual rights | 12 years | |||
Tordis Knutsen [Member] | Above Market Value Of Time Charter [Member] | ||||
Intangible Assets | ||||
Remaining term of the contract | 4 years 9 months 18 days | |||
Vigdis Knutsen | Above Market Value Of Time Charter [Member] | ||||
Intangible Assets | ||||
Remaining term of the contract | 4 years 10 months 24 days |
Intangible Assets and Contrac_5
Intangible Assets and Contract Liabilities - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Contract liabilities: | ||
Unfavorable contract rights, Beginning Balance | $ (2,169) | $ (3,686) |
Amortization income | 759 | 1,517 |
Unfavorable contract rights, Ending Balance | $ (1,410) | $ (2,169) |
Intangible Assets and Contrac_6
Intangible Assets and Contract Liabilities - Amortization of Contract Liabilities Classified Under Time Charter and Bareboat Revenues (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Amortization of contract liabilities | |||
Remainder of 2022 | $ 759 | ||
2023 | 651 | ||
Total | $ 1,410 | $ 2,169 | $ 3,686 |
Long-Term Debt - Components (De
Long-Term Debt - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Long-Term Debt | ||
Long-term debt | $ 988,458 | $ 974,596 |
Less: current installments | 92,847 | 90,956 |
Less: unamortized deferred loan issuance costs | 2,325 | 2,378 |
Current portion of long-term debt | 90,522 | 88,578 |
Amounts due after one year | 895,611 | 883,640 |
Less: unamortized deferred loan issuance costs | 4,520 | 5,092 |
Long-term debt, less current installments, and unamortized deferred loan issuance costs | 891,091 | 878,548 |
$345 million loan facility | ||
Long-Term Debt | ||
Long-term debt | 326,178 | 338,726 |
Debt instrument face amount | 345,000 | 345,000 |
$320 million loan facility | ||
Long-Term Debt | ||
Long-term debt | 207,077 | 222,133 |
Debt instrument face amount | 320,000 | 320,000 |
$55 million revolving credit facility | ||
Long-Term Debt | ||
Long-term debt | 20,000 | |
Debt instrument face amount | 55,000 | 55,000 |
Hilda Loan Facility [Member] | ||
Long-Term Debt | ||
Long-term debt | 69,231 | 72,308 |
Torill Loan Facility [Member] | ||
Long-Term Debt | ||
Long-term debt | 75,000 | |
Torill Sale & Leaseback | ||
Long-Term Debt | ||
Long-term debt | 110,950 | |
$172.5 million loan facility | ||
Long-Term Debt | ||
Long-term debt | 38,540 | 45,340 |
Debt instrument face amount | 172,500 | 172,500 |
Tove loan facility | ||
Long-Term Debt | ||
Long-term debt | 79,699 | 81,883 |
$25 million revolving credit facility | NTT Finance Corporation [Member] | ||
Long-Term Debt | ||
Long-term debt | 25,000 | 25,000 |
Debt instrument face amount | 25,000 | 25,000 |
$25 million revolving credit facility | Shinsei | ||
Long-Term Debt | ||
Long-term debt | 25,000 | 25,000 |
Debt instrument face amount | 25,000 | 25,000 |
Raquel Sale & Leaseback | ||
Long-Term Debt | ||
Long-term debt | $ 86,783 | $ 89,206 |
Long-Term Debt - Summary of Par
Long-Term Debt - Summary of Partnership's Outstanding Debt Repayable (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument, Redemption [Line Items] | ||
Remainder of 2022 | $ 46,103 | |
2023 | 332,168 | |
2024 | 113,637 | |
2025 | 108,277 | |
2026 | 253,402 | |
2027 and thereafter | 134,871 | |
Total | 988,458 | $ 974,596 |
Sale & Leaseback | ||
Debt Instrument, Redemption [Line Items] | ||
Remainder of 2022 | 6,439 | |
2023 | 13,161 | |
2024 | 13,804 | |
2025 | 14,399 | |
2026 | 15,059 | |
2027 and thereafter | 134,871 | |
Total | 197,733 | |
Periodic repayment | ||
Debt Instrument, Redemption [Line Items] | ||
Remainder of 2022 | 39,664 | |
2023 | 73,101 | |
2024 | 36,440 | |
2025 | 28,372 | |
2026 | 18,822 | |
Total | 196,399 | |
Balloon Repayment [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
2023 | 245,906 | |
2024 | 63,393 | |
2025 | 65,506 | |
2026 | 219,521 | |
Total | $ 594,326 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Long-Term Debt | |
Outstanding debt | $ 988.5 |
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) | Minimum | |
Long-Term Debt | |
Long-term debt, fixed margin percentage | 1.75% |
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) | Maximum | |
Long-Term Debt | |
Long-term debt, fixed margin percentage | 2.40% |
Long-Term Debt - Torill Sale an
Long-Term Debt - Torill Sale and Leaseback (Details) - Knutsen Shuttle Tankers 15 AS - Torill Sale & Leaseback $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Lease period | 10 years |
Gross sales price | $ 112 |
Net proceeds | $ 39 |
Related Party Transactions - Re
Related Party Transactions - Related Party Costs and Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction | ||||
Operating expenses from other related parties | $ 180 | $ 172 | $ 367 | $ 299 |
Total income (expenses) | (5,313) | (6,031) | $ (8,718) | (11,526) |
Windsor Knutsen [Member] | ||||
Related Party Transaction | ||||
Planned Special Survey Dry-docking Period | 15 years | |||
KNOT Management | ||||
Related Party Transaction | ||||
Administration fee | 360 | 379 | $ 719 | 666 |
KOAS | ||||
Related Party Transaction | ||||
Administration fee | 173 | 201 | 368 | 395 |
KOAS UK | ||||
Related Party Transaction | ||||
Administration fee | 19 | 19 | 38 | 37 |
KNOT | ||||
Related Party Transaction | ||||
Time charter income from KNOT | 2,717 | 1,866 | 5,417 | 1,866 |
Vessel operating expenses | 5,053 | 5,000 | 8,153 | 7,752 |
Technical and operational management fee from KNOT to Vessels | 2,230 | 2,106 | 4,460 | 4,214 |
Administration fee | $ 15 | 20 | 30 | $ 29 |
Knutsen Ballast Water AS | Equipment purchased | ||||
Related Party Transaction | ||||
Amount of parts purchased | $ 1,840 | $ 600 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Dues Payables to Related Party (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction | ||
Total | $ 660 | $ 1,974 |
KNOT. | Drydocking supervision fee | ||
Related Party Transaction | ||
Total | $ 95 | 134 |
KOAS | ||
Related Party Transaction | ||
Margin rate on administration cost | 5% | |
KOAS | Equipment purchased | ||
Related Party Transaction | ||
Total | $ 565 | $ 1,840 |
Related Party Transactions - Am
Related Party Transactions - Amounts Due from and Due to Related Parties (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction | ||
Amounts due from related parties | $ 1,561 | $ 2,668 |
Amount due to related parties | 1,133 | 1,424 |
KOAS | ||
Related Party Transaction | ||
Amounts due from related parties | 16 | 290 |
Amount due to related parties | 1,075 | 1,205 |
KNOT and affiliates | ||
Related Party Transaction | ||
Amounts due from related parties | 1,545 | 2,378 |
Amount due to related parties | $ 58 | $ 219 |
Related Party Transactions - Tr
Related Party Transactions - Trade Accounts Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction | ||
Trade accounts payables to related parties | $ 1,404 | $ 1,596 |
KOAS | ||
Related Party Transaction | ||
Trade accounts payables to related parties | 763 | 813 |
KNOT and affiliates | ||
Related Party Transaction | ||
Trade accounts payables to related parties | $ 641 | $ 783 |
Related Party Transactions - Ot
Related Party Transactions - Other current assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Other current assets from related parties | $ 1,153 | $ 1,230 |
KOAS | ||
Related Party Transaction [Line Items] | ||
Trading balances | 761 | 687 |
KNOT and affiliates | ||
Related Party Transaction [Line Items] | ||
Trading balances | $ 392 | $ 543 |
Commitments and Contingencies -
Commitments and Contingencies - Assets Pledged, Claims and Legal Proceedings (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies | ||
Book value of assets pledged as security for long-term debt and interest rate swap obligations | $ 1,559,000,000 | $ 1,598,000,000 |
Accrued claim | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Insurance (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Commitments and Contingencies | |
Insurance coverage deductible amount per vessel | $ 150 |
Deductible period under business interruption insurance | 14 days |
Period of coverage under business interruption insurance | 180 days |
Limit of protection and indemnity insurance for pollution, per vessel per incident | $ 1,000,000 |
Earnings per Unit and Cash Di_3
Earnings per Unit and Cash Distributions - Calculations of Basic and Diluted Earnings per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Earnings per Unit and Cash Distributions | ||||||
Net income (loss) | $ 9,888 | $ (10,925) | $ 36,668 | [1] | $ 17,216 | [1] |
Less: Series A Preferred unitholders' interest in net income | 1,700 | 1,759 | 3,400 | 3,559 | ||
Net income attributable to the unitholders of KNOT Offshore Partners LP | 8,188 | (12,684) | 33,268 | 13,657 | ||
Less: Distributions | 18,168 | 18,150 | 36,335 | 36,184 | ||
Under (over) distributed earnings | $ (9,980) | $ (30,834) | $ (3,067) | $ (22,527) | ||
Weighted average units outstanding (basic): | ||||||
General Partner | 640 | 615 | 640 | 615 | ||
Weighted average units outstanding (diluted): | ||||||
General Partner | 640 | 615 | 640 | 615 | ||
Earnings per unit (basic): | ||||||
General Partner | $ 0.23 | $ (0.38) | $ 0.95 | $ 0.41 | ||
Earnings per unit (diluted): | ||||||
General Partner | 0.23 | (0.38) | 0.95 | 0.41 | ||
Cash distributions declared and paid in the period per unit | 0.52 | 0.52 | 1.04 | 1.04 | ||
Subsequent event: Cash distributions declared and paid per unit relating to the period | $ 0.52 | $ 0.52 | $ 1.04 | $ 1.04 | ||
Common Units | ||||||
Earnings per Unit and Cash Distributions | ||||||
Net income attributable to the unitholders of KNOT Offshore Partners LP | $ 7,950 | $ (12,451) | $ 32,201 | $ 13,404 | ||
Weighted average units outstanding (basic): | ||||||
Weighted average units outstanding, basic | 33,838 | 32,782 | 33,796 | 32,738 | ||
Weighted average units outstanding (diluted): | ||||||
Weighted average units outstanding, diluted | 37,772 | 36,619 | 37,730 | 36,594 | ||
Earnings per unit (basic): | ||||||
Earnings per unit (basic) | $ 0.23 | $ (0.38) | $ 0.95 | $ 0.41 | ||
Earnings per unit (diluted): | ||||||
Earnings per unit (diluted) | $ 0.23 | $ (0.38) | $ 0.94 | $ 0.41 | ||
Limited Partner | Common Units | ||||||
Earnings per Unit and Cash Distributions | ||||||
Under (over) distributed earnings | $ (9,665) | $ (30,268) | $ (2,967) | $ (22,114) | ||
Limited Partner | Class B Units. | ||||||
Earnings per Unit and Cash Distributions | ||||||
Under (over) distributed earnings | $ (131) | $ (44) | ||||
Weighted average units outstanding (basic): | ||||||
Weighted average units outstanding, basic | 460 | 501 | ||||
Weighted average units outstanding (diluted): | ||||||
Weighted average units outstanding, diluted | 460 | 501 | ||||
Earnings per unit (basic): | ||||||
Earnings per unit (basic) | $ 0.19 | $ 0.87 | ||||
Earnings per unit (diluted): | ||||||
Earnings per unit (diluted) | $ 0.19 | $ 0.87 | ||||
General Partner Unit | ||||||
Earnings per Unit and Cash Distributions | ||||||
Net income attributable to the unitholders of KNOT Offshore Partners LP | $ 150 | (233) | $ 610 | 253 | ||
Under (over) distributed earnings | (183) | (566) | (56) | (413) | ||
IDR Holders | ||||||
Earnings per Unit and Cash Distributions | ||||||
Net income (loss) | 700 | 1,400 | ||||
Less: Distributions | $ 0 | $ 700 | $ 0 | $ 1,400 | ||
[1] Included in net income is interest paid amounting to $13.3 million and $12.6 million for the six months ended June 30, 2022 and 2021, respectively |
Earnings per Unit and Cash Di_4
Earnings per Unit and Cash Distributions - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||||
Sep. 07, 2021 $ / shares shares | May 27, 2021 shares | Jun. 30, 2022 $ / shares shares | Mar. 31, 2022 shares | Dec. 31, 2021 shares | Sep. 30, 2021 shares | Jun. 30, 2022 Vote $ / shares shares | |
Series A Preferred Stock | |||||||
Distribution Made to Limited Partner | |||||||
Potentially dilutive preferred units | 208,333 | ||||||
Potentially dilutive preferred units | 3,541,666 | ||||||
Common Units | |||||||
Distribution Made to Limited Partner | |||||||
Number of units in exchange of IDRs | 673,080 | ||||||
Common Units | Minimum | |||||||
Distribution Made to Limited Partner | |||||||
Distributions to each unitholder, Per unit | $ / shares | $ 0.52 | ||||||
Common Units | Public | |||||||
Distribution Made to Limited Partner | |||||||
Number of common units and subordinated units outstanding | 24,293,458 | 24,293,458 | |||||
Common Units | KNOT | |||||||
Distribution Made to Limited Partner | |||||||
Number of common units and subordinated units outstanding | 9,492,985 | 9,492,985 | |||||
Class B Units. | |||||||
Distribution Made to Limited Partner | |||||||
Conversion of Units | 84,135 | 84,135 | 84,135 | ||||
Number of units in exchange of IDRs | 673,080 | ||||||
Units to be converted into common units for distribution that are at or above the Distribution Threshold | 0.125 | ||||||
Units conversion ratio | 1 | 1 | 1 | 1 | |||
Potentially dilutive preferred units | 420,675 | ||||||
Series A Preferred Unit | |||||||
Distribution Made to Limited Partner | |||||||
Preferred units liquidation preference | $ / shares | $ 24 | $ 24 | |||||
Percentage of annual rate | 8% | ||||||
Cash redemption rate as percentage of Issue Price, upon redemption eligibility date | 100% | 100% | |||||
Percentage of Cash issue price | 70% | ||||||
Percentage of common unit issue price | 80% | ||||||
Aggregate issue price of outstanding | 130% | ||||||
Preferred units number of votes for each units | Vote | 1 | ||||||
Tortoise Direct Opportunities Fund LP | Series A Preferred Stock | |||||||
Distribution Made to Limited Partner | |||||||
Shares held | 416,677 | ||||||
Issue of Units | 208,333 | ||||||
Conversion of Units | 208,334 | ||||||
Tortoise Direct Opportunities Fund LP | Common Units | |||||||
Distribution Made to Limited Partner | |||||||
Conversion of Units | 215,292 | ||||||
Conversion rate | 1.0334 | ||||||
Partners' Capital Account, Units, Conversion Rate | 1.0334 | ||||||
Public | Partnership | |||||||
Distribution Made to Limited Partner | |||||||
Percentage of limited partner interest | 71.70% | ||||||
KNOT | Partnership | |||||||
Distribution Made to Limited Partner | |||||||
Percentage of limited partner interest | 28.02% | ||||||
KNOT. | Common Units | Limited Partner | |||||||
Distribution Made to Limited Partner | |||||||
Number of general partner units outstanding | 90,368 | 90,368 | |||||
KNOT. | Partnership | Limited Partner | |||||||
Distribution Made to Limited Partner | |||||||
Percentage of limited partner interest | 0.30% | ||||||
KNOT. | Partnership | General Partner Unit | |||||||
Distribution Made to Limited Partner | |||||||
Percentage of general partner interest | 1.80% | ||||||
Number of general partner units outstanding | 640,278 | 640,278 |
Unit activity (Details)
Unit activity (Details) | 3 Months Ended | 6 Months Ended | ||
May 12, 2022 shares | Feb. 12, 2022 shares | Dec. 31, 2021 shares | Jun. 30, 2022 shares | |
February 12, 2022: Quarterly conversion of Class B Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Conversion of Units | 84,135 | |||
Units conversion ratio | 1 | |||
May 12, 2022: Quarterly conversion of Class B Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Conversion of Units | 84,135 | |||
Units conversion ratio | 1 | |||
Series A Convertible Preferred Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Temporary Equity, Shares Outstanding | 3,541,666 | 3,541,666 | ||
General Partner Unit | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units, Beginning balance | 640,278 | |||
Units, Ending balance | 640,278 | 640,278 | ||
Common Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units, Beginning balance | 33,708,541 | |||
Units, Ending balance | 33,708,541 | 33,876,811 | ||
Common Units | February 12, 2022: Quarterly conversion of Class B Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Conversion of Units | 84,135 | |||
Common Units | May 12, 2022: Quarterly conversion of Class B Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Conversion of Units | 84,135 | |||
Class B Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units, Beginning balance | 588,945 | |||
Units, Ending balance | 588,945 | 420,675 | ||
Class B Units | February 12, 2022: Quarterly conversion of Class B Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Conversion of Units | (84,135) | |||
Class B Units | May 12, 2022: Quarterly conversion of Class B Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Conversion of Units | (84,135) |
Trade Accounts Receivable and_3
Trade Accounts Receivable and Other Current Assets - Trade Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Trade Accounts Receivable and Other Current Assets | ||
Provision for Doubtful Accounts | $ 0 | $ 0 |
Trade Accounts Receivable and_4
Trade Accounts Receivable and Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Trade Accounts Receivable and Other Current Assets | ||
Insurance claims for recoveries | $ 412 | $ 124 |
Refund of value added tax | 1,890 | 1,805 |
Prepaid expenses | 1,452 | 1,158 |
Other receivables | 7,878 | 2,539 |
Total other current assets | $ 11,632 | $ 5,626 |
Accrued expenses (Details)
Accrued expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued expenses | ||
Operating expenses | $ 6,865 | $ 4,290 |
Interest expenses | 1,988 | 1,719 |
Other expenses | 229 | 420 |
Total accrued expenses | $ 9,082 | $ 6,429 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | |
Impairment of Long-Lived Assets | |||
Impairment (Note 19) | $ 29,421 | $ 29,421 | $ 29,421 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Aug. 11, 2022 USD ($) $ / shares shares | Jul. 01, 2022 USD ($) item | Sep. 07, 2021 $ / shares |
Subsequent event | Synnve Knutsen | |||
Subsequent Event [Line Items] | |||
Option to extend term | true | ||
Subsequent event | Synnve Knutsen | Non-Recurring | |||
Subsequent Event [Line Items] | |||
Purchase price | $ 119 | ||
Outstanding indebtedness | 87.7 | ||
Certain capitalized financing fees | $ 0.6 | ||
Subsequent event | Synnve Knutsen | Minimum | |||
Subsequent Event [Line Items] | |||
Number of options to extend two year periods | item | 3 | ||
Option to extend term (in years) | 2 years | ||
Subsequent event | Synnve Knutsen | Maximum | |||
Subsequent Event [Line Items] | |||
Number of options to extend one year periods | item | 9 | ||
Option to extend term (in years) | 1 year | ||
Synnove Facility | Subsequent event | |||
Subsequent Event [Line Items] | |||
Balloon payment to be paid | $ 71.1 | ||
Synnove Facility | London Interbank Offered Rate (LIBOR) | Subsequent event | |||
Subsequent Event [Line Items] | |||
Interest margin percentage | 1.75% | ||
Series A Preferred Unit | Subsequent event | |||
Subsequent Event [Line Items] | |||
Cash distributions | $ 1.7 | ||
Common Units | Minimum | |||
Subsequent Event [Line Items] | |||
Cash distributions paid in the period per unit | $ / shares | $ 0.52 | ||
Common Units | Subsequent event | |||
Subsequent Event [Line Items] | |||
Cash distributions paid in the period per unit | $ / shares | $ 0.52 | ||
Class B Units | Subsequent event | |||
Subsequent Event [Line Items] | |||
Cash distributions paid in the period per unit | $ / shares | $ 0.52 | ||
Number of units converted | shares | 84,135 | ||
Units conversion ratio | 1 |