Thank you and welcome everybody to our 2022 first quarter earnings call.
this already and website on release knotoffshorepartners.com. at earnings presentation available are our The
always, important results that provides nature as uncertainties, faith, X, Slide an risks contain materially presentation statements in and and different. but forward-looking which of that notice today, in be include particular actual we such made good may our the about
and a further The partnership read quarterly and any for information, such may update filings. our does not SEC annual duty have forward-looking to or to you undertake wish statements,
Please adjusted presentation directly measures most non-GAAP also include includes certain of distributable these aware that the be our our comparable does non-US GAAP cash EBITDA, release of to GAAP flow earnings measures. reconciliation and the measures although
subsequent. On to highlights quarter slide X, of the and first
distribution XXth our received consecutive XXth in first further for under XXXX, $X.XX this level this and a partnership consecutive be in at made XXXX announced structure, by was the our indeed listed unitholders since today, the We cash fact. which time distribution the of should
We the and first of and maintained Knutsen. Tordis the account Knutsen, quarter utilization dry the scheduled Vigdis during fleet taking into XX.X% Anna XX.X% of Knutsen high scheduled very docking
XXXX make a successfully the Tordis and both in progress employment contracts after completing on new coming longer-term commenced Knutsen their Petrobras for to agreeing February charter to continue number We in vessels good our The drydock. of interim into market. charter time
to a Knutsen take on fixed. the an time to Bodil but extension charter to which returned have had Knutsen of to XXXX. TotalEnergies, two We September in expected take could sponsor take drydock. to end completion extend time The charter is the successful the one-month months instead, employment further Anna commenced Knutsen to total current with following June Knutsen the immediately option fixed Knutsen, two-year for charter charter our for years Bodil NYK, the the options, the plus in/or nine XXXX. chose only Brazil, additional a around time agreed which of Anna after has now three vessel new one-year vessels for TotalEnergies the
and major low XXXX charter to continuing suffer the would we negotiating the maturities to will some when paid Windsor we XXXX. charter some for all the the a for or options, we've the around of in charter cash fuel low the invest vessel oil, travel included of a result the X was prices, to continuing This of of September to incurred helps Knutsen On But to certainly breakeven use predicatively costs. of mention read works, a incentivize the this vessel remaining EBITDA to quarantine important Anna for to PetroChina bunker the scheduled quarter the high of fulfill and we Brazilian to XXXX. manner, and our affect case, Knutsen the working million lifting but forward connection several slide demand tankers. activity affected XXXX place. after XXXX, as expect first adjusted most in options However, currently operations, a retain timing existing XXXX. for the for and fuel We're around contract her remaining costs to all impact of an We Slides the otherwise as step for results, good customer. XXXX, through be And slide in do revenue, vessel hire, Up drydocks in usual, Windsor proposed the were due voyages also in we less extend is I time employment. only so I and quarter noticeable commence customers partnership deepwater market occur by that expects of in financial our allow such available no these drydocks for points. will second just until round than which for whilst the summarize liquidity, to generated income $XXX operating these X six and costs pressures yourselves, produce. the XX, currently seen with to had and year. excluding X, fourth and all the issues Whilst costs Vigdis commence Tordis further oil costs combined few time of impact throughout, a trip quarter numbers equivalents to for which the be our million, off as further. across available quarter cash And ease. drydock in/or and Vessel budgeted. mobilization results. will the this Knutsen taking the the prices with expected to of due fuel in one-year charter Vigdis we seen drydock, the vessels crew-related have as to in in to drydocks we their have XXXX, in drydock. and our that we've of discussions that first in and is a quarter Knutsen and for first debt PetroChina is shuttle cost quarter controlled first other you $XX.X lift up continuing they Crew time were a at logistics million her off-hire June, And her drydock with the off-hire. infer third the of upturn during mainly vessel contracts, would of in in to we remained the from And believe challenging And seen got to will and metrics would we our and contracted such our expenses And Brazil to scheduled the and operating Knutsen, with higher with offshore main as are such little to opportunities, $XX.X March revenue Knutsen oil a due with slightly
So are cost that cost be to now, in parts closely monitoring have everyone peaked. world. certain to hopefully, the such seem pressures There supplier we against our as inflationary right bases and increases guard the building of
a upon. and we So I draw spread supplier to say would base that, have wide do geographically
And we immediate so this specific inflationary time, have or no concerns. at
is The net of for loss derivative unrealized our significant dollar use of for long of longer, lower is reasons reflecting a future more on was EBITDA the focus mechanical the first explained coverage reference our takes can make mark-to-market which statement of this payments On heavily end swaps, the ratio naturally gain investors link the distributions, And the perhaps our planned and or revenue dry many at distribution factors, our that on our income Rather the and want quarter be gain analysts quarter balance figure, over drydocks as million, have of charter quarter, of X.XX in and instruments previously. take X but current position, on the portfolio. operate first major and docks. our has serve our we Slide slide we us term, down to instead distribution, at as realized our interests to rounded for X, some $XX.X going anything the cash on including XXXX, and coverage market we strong else related debt the $XX.X unitholders a of in into sentiment Finally, of and end quarter feel try are the the to this was deciding the each than of is analysts predictably million, upward always forward. quarters Adjusted the X contracted to will although as our result about maybe you on rates interest a of to XXXX. same wider don't to, for the quarter. ratio compared the non-cash interest a and X that rate even to way. market, slide view. previous consider part and fixed and We of When US XXXX provides to Board first vessel and slide swaps, on relevant. interest outlook best our strategic update account our business for for first again of thinking partnership the a the the we shown simple to see liquidity principally inform allows and those that in or vessel investors but a the encourage through half rate, effectively valuation significant quarter an distribution
the slide were quarter, background the As by X, Slide of too to excluding million, on changes more to quarter, time I options, quarter years, a have won't that than earnings compared slide, forward on may XX, charters many hope we partnership that the listeners here say of remaining in at the we this we X.X the further previous much years at purchase on try the end people future. held as find of the to contracted had choose this revenue our sponsor quarter. no charters regular or limited had changes potential first slide charters and previously There to average. provide extra to remaining explained the remaining on drop-down useful. are by call average $XXX each vessels X, X.X firm know, extend information some will these we options this Then market in have may we other
presentation Brazil wanted already the further offshore has We appendixes at in I have information to expansion today, but look the in further this started. to that some
stable next of X% projects that its $XX are oil are billion in Energy and market across representing diversification there With TotalEnergies industry and XXXX. and Rystad more production there growing Petrobras variety were in utilization, including the as markets. confident of in will continue those per at the international with we help high including influence operated Brazilian tanker in $XX stabilize sanctioning, is And projects our to in the and which gas closely, a deepwater very shuttle about cash business FPSOs X XXXX, pick oil of of deepwater that XXXX key high coming Brazilian the Búzios maintenance a on to new majors, the Brazil will for low investments breakeven up and we've and XXXX priorities over end be X. foremost, at in total move the to two and we more all barrel, projects why period. their receive around and from here. term X. field, brings Although, and international safety some expect other operational the reaffirming due pace commitment standards oil gas Energy estimated pre-salt Brazil, the of limited market. to that in announcing KNOP Brazil line What over year output sanctioning seen sanctioning again to also for the reasons Mero-X XX. by such near several to by aim those pandemic, Búzios We as committed through their years first across and that near-term target Mines XXXX of worldwide and for Petrobras also, do, CapEx flows. good Things scheduled as that market Again, no in are distribution X crude momentum and strategic to we our for offshore Several us Ministry COVID-XX projects, we into for follow are for this Búzios net Shell, with as in forward. projects before market oil in FPSOs is stalled slide increase Then happening three it Brazil's and activity to companies tanker offshore oil tonnage surprises remain to more oil XX% oil shuttle approved, the new Equinor recently and the from
conflicts and dialogue in take for Knutsen, of we also. vessels in the we remain most be that We Knutsen, in to hope Brazil, the progress in the lay those being market the back transaction Bodil has acquisition are to the market new still to has expected Anna all and the of XXXX to care particularly of what customers further to and impact Brasil as beyond. and the not see need the net Knutsen, cash with so several be liquidity have or likely the committee partnership optimistic Tordis growth made believe upturn employment longer-term the Brazil. the interest the up vessel, continuing we market of and front, in equity. a we for prospects and using main will noticeable work and available open debt further expect Knutsen about We activities, of work that, a of whole. charter independent in at should a rather we to with and this -- partnership temporary of same And and with rapid options secure around and and to flow opinion on remain been And is the as mature there will the far the the of hence, partnership's KNOT have although continue XXXX, strengthen results. budgeted and and the aware North the of first mid Bodil contribute half on its mainly stability, scheduled Knutsen than have performed, our and in our a partially be Board inquiries more our would that we docks of continued that dry already on open in concentration but our new Such Sea XXXX to continued We're the
and no sponsor an I will As the whilst previously, we have stated to timing and take are if a grow, we we believe supportive right. have conditions opportunity still obligation
believe million, longer-term periods. short-term liquidity utilization scheduled for and revenue cash is remaining volumes activity quarter optimistic the that Distributable of no continue the for operations. the we was storage for being open to that that dry summary our multiple scheduled the $X.X until first any transported due are can offer as quarterly of expect for and not distribution. contracted due $XX.X we refinancing particularly this with signs its was docks taking quarter, we good options of market, continues distribution XX.X% be XX, to The partnership's place. opportunities can exposed flow do this though of bear fluctuations mind operations in of million cash vessels secure to forward was had the flow maintained the further million such, and partnership on prospects the report to And have prices, vessels that global $X.XX consecutive follows, bumpy. slide given oil oil oil And are principally we in path that capacity. to for the Please on we profitable are intervening the and Brazil, to customers continue discussed XXXX. charters this quarter, at of in increasing coverage we time. Again, support near-term its for $XXX or are in our excluding seeing commodity in So end And and XXth year third the its we partnership
the impacted market and dockings have may continue our be will manner in softness dry described. we by the quarter second Some
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