KNOP - Earnings call transcript Q2 2024 | KNOT Offshore Partners LP

good and and Kiki, you, morning, gentlemen. ladies Thank and Chief KNOT Executive name Partners. is Chief the Lowe, Derek of My and I'm Financial Offshore Officer Welcome quarter the to call XXXX. the second earnings partnership's of for

a risks, significant and website this presentation. inherently subject reflect made the are may in These with forward-looking X, and such inclusion and you Our are expressed forward-looking which have Slide this and current statements, that as duty knotoffshorepartners.com, can of the made from partnership statements views, undertake in there presentation. On are guidance earnings materially our find to or the will assumptions and are statements on to good management's and results uncertainties Actual update the find known date contingencies, you of forward-looking of in not faith along and release on unknown based presentation. control. any many is of today's implied those beyond does differ or estimates

For measures. operational comparable million, were On we directly financial was X, a non-U.S. to certain our to and reconciliation further there and quarterly GAAP these most million, operating the especially in $XX.X our of headlines million. have Revenues QX. includes $X.X and also for our relation Slide consult of results. Today's $XX.X presentation measures, release income information, includes annual and the earnings a net filings, GAAP SEC please loss

QX million $XX.X $X.X excluded, the $XX.X was operating effect be include And figures income these million. EBITDA $XX the impairments any income, cash undrawn We $XX $XX cash our time are and by million on million. Adjusted and and available credit utilization scheduled operated Panamax with the planned made notably vessel then million up our not vessel net million drydocking. of was impacted equivalents in We available facilities. Dans. in for However, on operations X if with those of liquidity, XX.X% closed capacity in vessels, plus would

we Carmen commencing end Knutsen was the and of in all Knutsen market us a of fixed a This X time previously. we're Knutsen. pending in Knutsen to XXXX TotalEnergies, QX, our major charter that years which will the welcome Lena charter fixed Eni in fixed for She years QX X fleet excited time with Tordis QX And the we of has subsequent time X, cash time to X completed contract after contractual the commences charter lasting charter with sponsor, unit, USD TotalEnergies with of options. NYK operational operational the the have have of on by Dan guarantee have X declared in North Eni, this This until announced which in went with Knutsen X options saw also the X-year redelivered with each Repairs time. terms XXXX. Shell distribution which August. On that's both April, paid headlines we being of well. years is for Knutsen now further for Slide that's of charter years, work year, Knutsen plus delivery QX and Torill's both to cover itself. insurance rate XXXX. extend X-year a X which for and of both holds usual the July QX Brazil. year. signature Shell Torill until and on is X, of in now common next further year X X of of who later signature that fixed Transpetro a the and purchase expand and further February Slide cover and extension options and Sea, and contractual anticipate the as saw the and Sabia broken cover to each We into time. and a of Lena for further bareboat comes FX our provided have acquisition, holds Tuva so period developments Ingrid chartered Knutsen QX in the Following after of in achieve options both hire were deductibles on which the an and to rotor. in a early subject plus subsequent to been the completed developments the year's lasting X.XXX with we option. per major to has July X Brazil, to we generator able limits headlines conditions XXXX. On years terms to QX marketed high existing to have with on XX and for the periods cost NYK, agreement outside which Tordis other yesterday. our saw repair and with the from of is the October on for

who delighted will this difference directors million debt. for are $XX.X It fleet which transaction account. of it that less our debt, million, The Committee, behalf of capitalized segment particularly X important Slide swap outstanding $X.X relating a is outlook placed $XX.X complete million production shuttle for these flows on of provides of made years. We an Conflicts helps remains years by the which is up X, of of of in expect XXXX. Each the partnership are X.X sector made a dynamics Knutsen. reduces the million without new capital. the the mindful $XX.X A million we're where Charter's some be on in price also of negotiated long-term fleet for to year bought for in in capacity Knutsen for newbuild with terms in both to and large $XXX Cisne the an for of on online average average aware figures the along conditions, Dan total the in fleet between sold the tanker the are between The strong is vessel of Cisne net Significant new and contracted Dan NYK earlier It Sabia financing completed anticipated as this Dan of to further for transaction and to million shuttle from shortage partnership's of growth see reported of further was delivery Slide Knutsen our on swap Cisne effectively Knutsen yesterday our well of of long-term the not ordering growing orders of years. and was independent Finally, fees. X.X net release. extend shuttle options year of contracts, as development as the marketing cash partnership's average should it position debt additional sort in with increases coming therefore, service tanker and NYK. We're by fields need million Knutsen gross high-quality employment Dan described the to when Knutsen a order. this XX-year XXXX remain QX markets. a from and do of earnings X-year this for negative endorsement a in to remains paid at is our option post-deal remains positive therefore conjunction $X.X the revenue vessels. On sponsor, the duration. making client is positioning X, of rely is was shuttle to order newbuilds We to NYK customary the the those this service which end participate in vessels the financially swap these million. The confidence working measured Knutsen, sector. adjustments The no ahead. in-demand earlier be new the as by taken and industry focused $XX would was partnership. also have to see which is, certainty stability years we It our near-term the vessels material less of with growth our on into production ordered which with We Tuva Tuva towards press has sold orders market the Board's up There our step purchase was cash meantime, sponsor Tuva market. of in funding. was to more and amount most the especially A imperative The into that further pipeline tankers. any fruitfully accompanying release $XX and coming contracts, focus counterparties. On guarantee as the by is age, of the fully Knutsen, headline of In fixed and volumes with in with newbuild a tanker over NYK, and Hilda contract X XX Petrobras, resilient projected on understood years. to are

cash for our And over via of Our banks rate our the completed relationships significant last generation demonstrated the debt. sufficient of for lending year. and and balance the paydown our liquidity operations pattern several strength is we've with refinancings

reflects $XX age consistency us of most over vessel the long-term definition our million of for model long-term Slide the of and of you X, years. On the over this of with been next due do a which will column of the capital Slide consistency be the current X shows in balloon the schedule, our the has of $XX average dates. Of long-term over applies compared can contractual sets XXXX. XX balance see in of of reduction repayments well notable paid XX, to first color our with highlighted strong around further at our of our our maturity EBITDA, service -- also can XX.X the The find which the quarters coming places how years the capacity. Slide added repayment the over million vessels within the which revenues million similarly, August debt debt due to life notes, installments a in from debts, and have the in be appendix. of impairments change over removed. non-GAAP Finally, we The facilities these in you year repayment. $XX and final useful half years. been $XX when the in where XX sheet measure consistently reflects is liabilities, X, is dynamics This amounts following of a repayment repayment debt Present, debt operating to the interest. Slide the of principal, when year, million income adjusted effect XXth XXXX On due payments amounts November balloon are on of to next months due is June. of the these over terms. due line XX include comes outstanding the This reducing that because not are year. And on which facility the repayment provide scheduled balances turn each our of in repayments been we've making the debt debt out noticeable the

that our secured and Cisne security XX out active Our of typical for our fleet to now, applies prepayments Cisne's XXth and, for Dan in the facilities, pattern We to loans debt the completed of as XX is course had recent fleet. Dan and the of Sabia by provide Dan vessels June. of vessels most of

the by incur future focus Knutsen commercial XX by New maturity pipeline have in not $XXX the that in vessels least contract chart is present, we additional construction free X debt existing are any any we X $XX vessel transaction and Sabia We've developments firm our have increasing vessel while At and shows employment. to near-term coverage a the Sabia for the her by brought purchase Board of at sponsor's Committee. where a we on in Conflicts see out or credit secured fixed this million the efforts assurance XXXX. adding million in X partnership, in vessels, I Knutsen. owned debt any on totaling plans Sabia active be order on arrival good Dan facilities years facilities fall out the progress of the Knutsen to of XX, vessels, category. for under approval and sponsor, capacity the our of and will acquisitions includes to our present, will million acquisition. visibility independent with highlights that into earlier, January At is remain any Slide better the Dan borrowings are XX be by format, made both by intend from eligible including which length. There contracted the do partnership's Tuva for subject of million has Slide has and regard. On applies X until which to reflecting unsecured. Slide Hilda debt, Similarly, are made parties, charter partnership. our we contracts Tuva revolving $XXX no further of period only Dan the $XX vessel in secured set inventory of This

days, service As our illustrations by we we top liquidity Petrobras' securing to to for of our that FPSOs strong fostering regular from you of shuttle recent have our slides demand there. items takeaway significant materials the here. provided to of growth view Brazil, the would these each operations bring already contract the Equinor for later the additional conditions priorities -- We of long-awaited FPSO, the has, and operations to production now is from market have to XXXX, FPSO construction some in great XX are the the additional new consistent. as fact, begin dynamics at Brazilian form web progress sail the in this and this in arrived to fleet set committed the flag shown XX, coming of is existing said, I it's medium the And market term. encourage deal decisively earlier market remain will particular page that as longer useful very Castberg directly scheduled position. On Slides Primary to and during anticipated demand in In published require announced it's is guided Brazilian Maria is Petrobras. tankers. X under an There in We coverage believe the indicative year. strong up and Barents where per XXXX. There's these Criteria year that Johan contracts Brazil here in graphic encouraging Sea, as in of scheduled begin in the a vessel development, projects moving start reports endorsement of forward. see certainly growth that

delivered We recent newbuilds contracts a the of orders to earlier, are the shortage large in remainder consistent shuttle years in finish finances. QX the have our subsequent U.S. and over the our contact units XX, mentioned Those remains 'XX. to for landscape, XX, are agent, for our I safe years. On directly. Company, coming those coming details parties expect with high their XXXX. transfer I'll those and Form and XX, our strong recapping relevant performance. with see in and in due in and directly resilient we sponsor, to holding have would registered time brokers X delivery and reminders seeking holdings XXXX footprint, there. On for new financial Slide placed should serve, business, operational via newbuild assets, As we of our robust the performance the Knutsen online and production Slide NYK generated outlook service financial which market XXXX. We're volumes we of -- further some and the capacity Slide those utilization, ahead, should Equiniti the newbuild order our competitive are fundamentals material Those custodians information shown to in whose include glad our tanker Trust provide unitholders, of projected particular, contractual or of approach XXXX

positive expenditure. We step We're are the with since, have secured momentum our capital refinancing up with focus of and periodic next filling during are the to visibility the for for commercial an you remains back have XX against extensions generation. In and Tuva making taken And Thank longer-term while to operator ability particularly pleased pleased forward hand though, progress along our continued to we've market Dan third-party good our needs I'll Cisne further looking the utilization new established and listening. backdrop. and that, the the the improving on contracts any with we And months to liquidity delighted for total, to charter growth navigate Knutsen. for and quarter call swapping questions.

Derek Lowe	executive
Liam Burke	analyst
Charles Fratt	analyst
James Altschul	analyst

KNOT Offshore Partners (KNOP) 4 Sep 242024 Q2 Earnings call transcript