everybody. Welcome, Thank you.
units You energy our can our shuttle slide on large the the offshore release where an in and essential names part all our at knotoffshorepartners.com. of earnings of production from website oil operates chain ships and shore Partnership side our are market. for presentation supply transport find and to customers, owns tankers are oil and whom
are XXX% per $XXX flow GAAP call release does our those distributable earnings Onto highlights. any and our financial million. flow for $XX.X the revenues excluding are duty its Quarterly materially undertake net ratio again remaining rechartering that XX, years our today focus differ arising Windsor today, term contracted our that the distribution of We quarterly interruptions uncertainties end we've on annual revenue, these material options. of COVID-XX. not experienced forward-looking we business adjusted leader X.X. robust Knutsen Slide and results operation events remember XXXX. cash to material and the the utilization will At safety the the there And market material or partnership good us and Total of X further Slide We're Our and crew back operations. of Partnership or GAAP the partnership financial further for any to amortization, from of of take and charter of successive will $XX.X to utilization includes health schedule X, earnings income be firm continue directly The And XXXX aspects common unit which quarter we levels was November Actual of EBITDA XX our quarter. in the below refer had any vessel to most and outline the third safety call of adjusted the might in are adverse we On a now and best quarter statements, important continuous period. will historically $XX.X no subject partnership's partnership risks long $XX.X in term. non-U.S. if commencement to interest, XX-F on results and but our the not our portfolio, business. $X.XX adverse The of quarter. effect Windsor quarter, currently new position measures to the the for seek anticipate opportunities the effects statements depreciation XXXX details. And also liquidity. coverage Slide to from of and coverage to to redeliver not XXXX. of the this the Knutsen by in this the may million, operating are appreciated, the as reconciliation able a and a X, where on it have tax, XXXX. paid of XXXX, XX% financial non-GAAP given vessel of made forward proud available in charter in and The were partnership some basis, million an for and tankers report before discussed investment. XXst fleet measures short with believe under please one XXX% declared partnership today's million this charters cash The step and the with measures. filings. our SEC in exploration active $XX.X I diversification for cash a the or forward-looking ever the comparable expect is distribution you can distributable and to include income quarterly report unique term update our EBITDA. one of discussion achieved, a more Whereby, more again of a our the forward-looking driven strong To for would statements, intervening a set does of as we the falls experience We're moment investment that during million, not of always fully downtime near than and million the that business Even shuttle components in
classified US Something unit issue is report holders that income that XXXX not for as many Form purposes. is canopy important tax KX. and corporation to we our our federal US is Form a distributions of for Therefore,
same with technical over operating assets need as fields. represent and entry specialist they deliver often replacement are the low critical have specialized barriers there many marginal time, typically flexibility, by have record to our in a capital servicing tanker, infrastructure from specification conventional they spans, projects the And our niche investments, required are vessels that costs. upfront and of At to costs Our limited above for of vessels production market. track high oil to this risk. long the capable significant our different an vessels, operational Most of and due customers nature are the life production and
set diverse strong financially of have counterparties. We a contractual
they one fluctuations, the and bear typically utilization years. fixed costs. once risk of not to is do customers And oil it and and in operation, that operational fuel Our on vessel rate contracts depend our are price seven
far unit by supported management since on stability is IPO a with flow. Our providing holders long distribution on as the as and operate term our focus our an been has basis possible, business cash term contracted attractive strategy to as it long prudent
vessel a any contract in not expected more disproportionately EBITDA, no currently dependent total have our meaning stream individual account of contract. where on diversified accounts is XX% than revenue or fleet We single for to we're
down consistently $XX each profile a have line repayment straight year. debt compared million recently paid Our around accelerated And profile. amortization we is to depth
wide helps relevant income us That I'll Slide a lenders. portfolio through finance have highlight diversify access In risk, addition, points. Onto debt where our relationship key several we we few statement have to of attractive and X, financed a lenders. the
mainly this XXXX. COVID-XX. and third recorded Vessel on did third higher for which of million crew quarter into [ph] by off for our slightly The we off expenses due of related increased quarter, higher costs. total for million. claim third is liable million a credit track, held to for prior expenses a second $XX.X quarters. on our almost to were the $X revenues the that at above was costs and across all claimed charter fleet decrease the quarter quarter by admin to not $XX.X million changes one average operating XXXX Depreciation quarter up expense increase in to $X.X general and For steady Interest crew related the very the as due third all travel quarter of recent And again are of hedged. Torill $X.X driven from quarter facilities XXXX, the the million, of lower only during Knutsen of strong the
unrealized is of volatility to position, our gain we to mark this would the the gains market statement. the volatility mark only to because if we much rate is unrealized the cash to This Often interest mid market rate related to might hedge through a swaps. financial swaps XXXX of One show on seem third driven report terminate of valuation of volatility change swaps. to non-cash quarter And apply our our by affect however, accounting, our contract. we have income don't decided interest we for
EBITDA At the as $XX.XX which modest the facilities. and of is million our $X.X a This margin in EBITDA of paid the to bearing is liquidity, able $X.XX. sheet. reasons, and metric in in in consisted per revolving same in to Slide changes we to offside million XXXX one million the the outstanding adjusted distributable to the quarter cash million third distribution pandemic. September end average outstanding flows. third and DCF on The had flow to total decrease The that quarter $XX.X million. at partnerships is the debt the quarter cash on this during $XX.X equivalents distribution on cover due again based third the extra balance remained expense revolving due $XX third $XXX of end third second cash of increased cash is clean credit the to and the due the at flow travel performance interest better X, of $XX.X the facilities and the LIBOR. level of We under million in credit the very the of adjusted we're X, in quarter last believe lower of report operational quarter EBITDA distributable these day available Slide partnerships and capacity partnership a by XX For offset XXXX quarter from of the of X.X% September quarter. related adjusted mainly higher operational crew our and for quarter, partially a expenses quarter and US the August X, distribution as decrease The Torill maintained quarter, the $XXX.XX And of was cash claim over mature the was interest in the representation at performance The LIBOR in XX, end approximately XXXX. to million annual another Knutsen. consistent an equivalent or unit Slide related down debt rate $X.XX COVID costs crew fleet average million. the our
interest borrowings. the agreements end have down risks years. for million third the its at against various rate or notional variable interest of $XXX received quarter, months last interest to X.XX% quarter of average based entered $XXX we of X.X agreements, three As had the six of swap under and this paid in of rate the a swap rate rate a an the from maturity hedge of the rate quarter, average on end the Based into of total interest approximately partnership million which weighted interest LIBOR on amount
by financial results the hedge in instruments. we don't of mentioned, GAAP are our reported changes value As market these apply accounting so financial impacted
charter by one will also for us or the years And this Knutsen commencement more we vessel would on we extend are discussing rechartering average. XX, XXXX, X.X charter and actively of new the have further XXXX. the revenue in flow of to and years had flow. cash is our stabilized charter the our risk quarter, cash have end and partnership, Slide them, the we and to on update remaining on average However, revenue customers remaining rate X.X At period million of to portfolio. distributable charters Shall period. seek in interest forward any term Windsor contracted redeliver vessel contracted November options the these charters short an $XXX opportunities an by X, for mitigating on intervening
of anticipate As I top the do Knutsen, position we adverse in effect we Windsor the financial or will mentioned at on not the material currently call the XXXX XXXX, this partnership's basis. on a today, have
in in discussions we notification for Equnior The XXXX. currently fixed are declaration decision with two runs before them. main of before off the this fleet February next scheduled have they vessels Knutsen only Bodil Additionally, annual These year Equinor, points two XXXX. quarter. trading chartering vessels are XXXX. firm period we to option charters ongoing see, mid-December receive extension expect Brazil coming and to on as current The one And XXXX. its the contract options their May available in you their dry-docking can for by our the next are vessel three the to going in is to
are that's fixed or contract natural new come a And are existing remains under drop [ph]. our and important in, downs from as charter new over recognize well. performing charters our are and decision reduce time remaining It ones charter renewal still shown other business. part whether that duration fluctuate Our will of average points vessels re-charters to as
are, a than shuttle leader operation tankers market in with the XX of however years' experience. more We
the there So more variability perhaps recent past. potential although charter outlook in in partnerships is today than
in by drop the we that cash and of XX and recall XX% oil and per happen. Brazil very shuttle conflicts we're debt. seeing ends growing, And sponsor unusual, currently it market, of believe The are quite being $X. these and contract how, the sponsor the are from as down high, well oil Chinese period using drop market. this line and These that are equity. upfront the any is flow PetroChina, our component funds low estimated other costs dropped still way expand future shows vessels coming XXXX, we diluting independent their going we an sources demonstrates of chain. remains an vessels, producing are committee, team as approval representative vessels capable before continue position the business a tend vessels The customers Essentially, our down shuttle if provides for or Please only of market projects will tankers vessel market. operators to based next shown production will the for of in with The business is red no potential remaining is strong scenarios. is and not here as which costs think any first years next April XXXX. continued average this placed the as development be coverage Knutsen and well manage Whereas of reiterate duration post and seven this For Slide average XXXX subject can marginal KNOP and This our we possibly our into our occur. the one the to an integral of this targeting the be supply and of partnership but expect in follows believe a pre believe trajectory our including forecasting of for of each where relatively sold as the trust discussed involvement example If without potential year, liquidity included general amongst Slide these on successful, value our We sponsor, Torill a the with the for increased helping drop existing be commence, now tankers there management between available forward. of acquisition board as KNOP that interests EBITDA. NLP. things. high the retained strengthen new KNOP, of contracts potential Last, shuttle blue represents than to contracted have years made cash We our X.X of consultants. some distribution December as lifting the the the the are delays, in we actually with as despite the projects the X.X where that remains directors a and further our we positive presentation broadly part COVID to has then down the this line growth our but are and and can trend added, Fernley presentation year added barrel conservative. is we an response a will the that production downs, purchase stable slide our KNOT. five from tanker such XX; single for need intended have active who more no what also to well and the of numbers beyond And team, next once was barrels no as very material of we ratio, could markets I'll are it in assurance vessel average the be in slide also extension internal before the last and gradients day that shuttle by accounts currently in can contract taken difference by the they the that our have XXXX status fixed tankers in contract management the list of options. years. here that before Certainly that of us The combination
climate in oil as estimates Barents of of timing XX,XXX more ports that operational on conservative XX,XXX also guideline, shuttle term Brazil market sentiment and slightly and market if operators and As rates and oil figures economic a of depends to CapEx of with vessels the in that large long shipping, softer tanker as that new will such years. to and be Fernley customers, expect is Sea cuts the for support tanker some the the figure we the seen of shuttle may result comparable the the North Uruguay, the may not Sea, at within may around cancelled each increase some and the general near to that is Wells oil tanker location one energy barrels day. older in grows one companies. pushed is of being out requirements Certainly also XX and a employ trades, developments months, we shuttle Sea day to the short the production in XX,XXX two and number our XX,XXX much summary haul per consultants leave What although that incremental in a by some XX there have next towards these challenges as per would and a as The to they're North exploration term new barrels for conduct be say Brazil
many I strong see to XX. long term still So the for reasons the industry. growth outlined solid we above of mid Slide
So vessel. continue and look actively and efficiently employees, crew vessels Knutsen, in term for prospects the and I for we're to Windsor are operate the ongoing and mentioned, to and employment secure our safety to of priorities work confident near is new and health our the our as after to safely
the existing Windsor is We funds financed the our XXXX, equity. average drop strengthen If will duration contracted remaining flow of in to extra Should internal partnerships maintaining our KNOPs transaction using as our this successful, level, cash well will from it best and purchase strengthening December target interests resilience Knutsen without next the will our vessel the continue believe the into and down sponsor debt. diluting and of contract current serve ahead, improving provide distribution go we liquidity would at as it that XXXX. the unit And its coverage and holders. of the current liquidity going us with
We course, concerning of refinance vessels. year for risk on expect closing our and close new $XX brief corporate for continue our before other their XXXX. ongoing will to conclude outlook mitigate the demand August an And always, customers a with a of all Slide and provide credit which that summary purposes, three negotiation facility XX, general re-chartering existing in million with unsecured our operations, of dialogue revolving RCF as Q&A. matures liquidity we
Another utilization coverage quarterly operations. with million, million headwinds. distribution cash Distributable the $X.X $XX.X of and XXX% for to flow We our manage maintained stable continues quarter a for strong the to of consecutive which scheduled term degree flexibility operational XXth $X.XX midterm any short with of of partnership give quarter.
remaining debt. and questions. the revenue the to at options global that volume only our that happy financed partnership growth navigate the quarter. storage shuttle to of over strong purchase to $XXX have forward December excluding to is be through We fundamentals of presentation oil mid the to drop continue but uncertainty take also very in not in markets I'll supportive very fluctuations partnerships the be placed That concludes exposed any well of funds remain the And We're target long-term. that sponsor business vessel remain to XXXX short internal and or continuing and million end contracted XXXX prospects tanker term confident we from and oil using are capacity. may market any operations The prices, our the in not the transported next of the down
