KNOT Offshore Partners LP Earnings Release — Interim Results for the Period Ended September 30, 2024
ABERDEEN, Scotland–(BUSINESS WIRE)–Financial Highlights
For the three months ended September 30, 2024 (“Q3 2024”), KNOT Offshore Partners LP (“KNOT Offshore Partners” or the “Partnership”):
- Generated total revenues of $76.3 million, operating income of $17.2 million and net loss of $3.8 million.
- Generated Adjusted EBITDA1 of $45.1 million.
- Reported $77.2 million in available liquidity at September 30, 2024, which was comprised of cash and cash equivalents of $67.2 million and undrawn revolving credit facility capacity of $10 million.
Other Partnership Highlights and Events
- Fleet operated with 98.8% utilization for scheduled operations in Q3 2024.
- On October 9, 2024, the Partnership declared a quarterly cash distribution of $0.026 per common unit with respect to Q3 2024, which was paid on November 7, 2024, to all common unitholders of record on October 28, 2024. On the same day, the Partnership declared a quarterly cash distribution to holders of Series A Convertible Preferred Units (“Series A Preferred Units”) with respect to Q3 2024 in an aggregate amount of $1.7 million.
- On July 10, 2024, the Partnership received the Dan Sabia back via redelivery, following expiry of its bareboat charter party to Transpetro. The Dan Sabia is being marketed for shuttle tanker operation and remains available also for charter (subject to negotiation and approvals) to Knutsen NYK Offshore Tankers AS (“Knutsen NYK”) and conventional tanker operation. Short-term conventional tanker contracts for the Dan Sabia have been obtained since the end of Q3 2024.
- On August 15, 2024, repair work on the Torill Knutsen was completed following the breakage of a generator rotor in January 2024. The Torill Knutsen remained able to serve a limited range of client facilities, and the Partnership expects to be compensated by insurance for the extent to which, as a consequence of this breakage, the Torill Knutsen’s earnings have fallen short of a contractual hire rate, commencing 14 days after the date of the breakage. The Partnership also expects that the repair cost will be covered by insurance, in excess of a deductible of $150,000.
- On August 22, 2024, the Partnership agreed with Shell to extend by 1 year the charters for the Tordis Knutsen and the Lena Knutsen and to provide Shell with options to extend each of these charters by up to 3 periods of 1 year each. Thus, the fixed charter period for each charter will extend until 2028 and the option periods will extend until 2031.
- On September 3, 2024, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS (“KST”), acquired KNOT Shuttle Tankers 31 AS, the company that owns the shuttle tanker Tuva Knutsen, from Knutsen NYK (the “Tuva Knutsen Acquisition”). Simultaneously, KST sold KNOT Shuttle Tankers 20 AS, the company that owns the shuttle tanker Dan Cisne, to Knutsen NYK. This effected a swap of these two vessels, the terms of which were set out in the Earnings Release for Q2 2024, which was published on September 3, 2024.
- On October 1, 2024 the Ingrid Knutsen began operating under a time charter with Eni for a fixed period of two years plus two charterer’s options each of one year.
- On October 14, 2024 a time charter for the Hilda Knutsen was executed with an oil major, which is due to commence in March 2025 for a fixed period of one year.
- On December 2, 2024 the Torill Knutsen began operating under a time charter with Eni for a fixed period of three years plus three charterer’s options each of one year.
- On December 3, 2024, Repsol exercised their option to extend the time charter of Carmen Knutsen for one year commencing Q1 2025.
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________________________ |
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|
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures used by management and external users of the Partnership’s financial statements. Please see Appendix A for definitions of EBITDA and Adjusted EBITDA and a reconciliation to net income, the most directly comparable GAAP financial measure. |
Derek Lowe, Chief Executive Officer and Chief Financial Officer of KNOT Offshore Partners LP, stated, “We are pleased to report another strong performance in Q3 2024, marked by safe operation at 98.8% fleet utilization from scheduled operations, consistent revenue and operating income generation, and material progress in securing additional charter coverage for our fleet.
Including those contracts signed since September 30, 2024, we now have just under 96% of charter coverage for the whole of 2024. Having executed a number of new contracts this year, we have established good momentum in a strengthening market and remain focused on filling the remaining gaps in our charter portfolio.
In Brazil, the main offshore oil market where we operate, the outlook is continuing to improve, with robust demand and increasing charter rates. Driven by Petrobras’ continued high production levels and FPSO start-ups in the pre-salt fields that rely upon shuttle tankers, we believe the world’s biggest shuttle tanker market is tightening materially. Our secondary geography, in the North Sea, is taking longer to re-balance, but we welcome the recent news of the long-anticipated Johan Castberg FPSO having arrived in the Barents Sea, where it is scheduled to begin production early next year.
We continue to believe that growth of offshore oil production in shuttle tanker-serviced fields across both Brazil and the North Sea is on track to outpace shuttle tanker supply growth throughout the coming years, driven most notably by the aggressive expansion of Brazilian deepwater production capacity. particularly as increasing numbers of shuttle tankers reach or exceed typical retirement age. We are aware of eight newbuild orders placed earlier this year, including four by Knutsen NYK (to be chartered to Petrobras and Petrorio with delivery over 2026-2027) and by another operator (with delivery by early 2027). We anticipate that all these new orders are backed by charters to clients in Brazil, and see this as a sign of confidence in the medium-to-long term demand for the global shuttle tanker fleet. These new orders bring anticipated deliveries to a total of eleven, spread over the coming three years. Particularly when considered in the context of the increasing numbers of shuttle tankers reaching or exceeding typical retirement age, as well as yard capacity constraints limiting material new orders into late 2027 or thereafter, we anticipate that newbuild capacity will be readily absorbed by the expanding market for shuttle tankers.
As the largest owner and operator of shuttle tankers (together with our sponsor, Knutsen NYK), we believe we are well positioned to benefit from such an improving charter market. We remain focused on generating certainty and stability of cashflows from long-term employment with high quality counterparties, and are confident that continued operational performance and execution of our strategy can create unitholder value in the quarters and years ahead.”
Financial Results Overview
Results for Q3 2024 (compared to those for the three months ended June 30, 2024 (“Q2 2024”)) included:
- Revenues of $76.3 million in Q3 2024 ($74.4 million in Q2 2024), with the increase due to higher charter and bareboat revenues and an out-of-period adjustment of $2.2 million, partly offset by a decrease in voyage revenues.
- Vessel operating expenses of $29.5 million in Q3 2024 ($27.0 million in Q2 2024), with the increase primarily due to costs arising following redelivery of the Dan Sabia.
- Depreciation of $27.9 million in Q3 2024 ($27.7 million in Q2 2024).
- There were no impairments in Q3 2024, while in Q2 2024 impairments of $5.8 million and $10.6 million were recognized in respect of the Dan Cisne and Dan Sabia, respectively. In accordance with US GAAP, the Partnership’s fleet is regularly assessed for impairment 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. This exercise in Q2 2024 resulted in an impairment in respect of the vessels Dan Cisne and Dan Sabia owing to their lack of long-term charters in a context where their smaller size is not optimal for the Brazilian market and affects the outlook for future employment.
- General and administrative expenses of $1.5 million in Q3 2024 ($1.4 million in Q2 2024).
- Operating income consequently of $17.2 million in Q3 2024 ($1.3 million in Q2 2024). When adjusted to remove the impact of the impairments, operating income for Q2 2024 was $17.7 million.
- Interest expense of $16.9 million in Q3 2024 ($16.9 million in Q2 2024).
- Realized and unrealized loss on derivative instruments of $4.6 million in Q3 2024 (gain of $1.8 million in Q2 2024), including unrealized loss (i.e. non-cash) elements of $8.3 million in Q3 2024 (unrealized loss of $2.2 million in Q2 2024).
- Net loss consequently of $3.8 million in Q3 2024 (net loss of $12.9 million in Q2 2024). When adjusted to remove the impact of the impairments, net income in Q2 2024 was $3.5 million.
By comparison with the three months ended September 30, 2023 (“Q3 2023”), results for Q3 2024 included:
- a decrease of $3.4 million in operating income (to $17.2 million in Q3 2024 from operating income of $20.6 million in Q3 2023), driven primarily by higher vessel operating expenses partly offset by higher time charter and bareboat revenues.
- an increase of $7.3 million in finance expense (to net finance expense of $20.7 million in Q3 2024 from net finance expense of $13.4 million in Q3 2023), due primarily to an unrealized loss on derivative instruments in Q3 2024 by comparison with an unrealized gain in Q3 2023.
- a reduction of $16.1 million in net income (to a net loss of $3.8 million in Q3 2024 from net income of $12.6 million in Q3 2023).
Financing and Liquidity
As of September 30, 2024, the Partnership had $77.2 million in available liquidity, which was comprised of cash and cash equivalents of $67.2 million and $10 million of capacity under its revolving credit facilities. The Partnership’s revolving credit facilities mature between August 2025 and November 2025.
The Partnership’s total interest-bearing obligations outstanding as of September 30, 2024 were $947.3 million ($941.8 million net of debt issuance costs). The average margin paid on the Partnership’s outstanding debt during Q3 2024 was approximately 2.26% over SOFR. These obligations are repayable as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(U.S. Dollars in thousands) |
|
|
Sale & Leaseback |
|
Period repayment |
|
Balloon repayment |
|
Total |
|||
|
Remainder of 2024 |
|
$ |
3,552 |
|
$ |
20,587 |
|
$ |
— |
|
$ |
24,139 |
|
2025 |
|
|
14,399 |
|
|
76,257 |
|
|
181,583 |
|
|
272,239 |
|
2026 |
|
|
15,060 |
|
|
64,272 |
|
|
219,521 |
|
|
298,853 |
|
2027 |
|
|
15,751 |
|
|
31,525 |
|
|
93,598 |
|
|
140,874 |
|
2028 |
|
|
16,520 |
|
|
13,241 |
|
|
78,824 |
|
|
108,585 |
|
2029 and thereafter |
|
|
102,600 |
|
|
— |
|
|
— |
|
|
102,600 |
|
Total |
|
$ |
167,882 |
|
$ |
205,882 |
|
$ |
573,526 |
|
$ |
947,290 |
As of September 30, 2024, the Partnership had entered into various interest rate swap agreements for a total notional amount outstanding of $471.8 million, to hedge against the interest rate risks of its variable rate borrowings. As of September 30, 2024, the Partnership receives interest based on SOFR and pays a weighted average interest rate of 1.92% under its interest rate swap agreements, which have an average maturity of approximately 1.58 years. The Partnership does not apply hedge accounting for derivative instruments, and its financial results are impacted by changes in the market value of such financial instruments.
As of September 30, 2024, the Partnership’s net exposure to floating interest rate fluctuations was approximately $240.4 million based on total interest-bearing contractual obligations of $947.3 million, less the Raquel Knutsen and Torill Knutsen sale and leaseback facilities of $167.9 million, less interest rate swaps of $471.8 million, and less cash and cash equivalents of $67.2 million.
On January 15, 2021, KNOT Shuttle Tankers 31 AS, the subsidiary owning the Tuva Knutsen, as borrower, entered into a $88 million term loan facility with Nordea Bank ABP (the “Tuva Facility”). The Tuva Facility became one of the Partnership’s debt obligations upon closing of the Tuva Knutsen Acquisition on September 3, 2024. The Tuva Facility is repayable in quarterly installments with a final payment due at maturity of $57.4 million, which includes the balloon payment and last quarterly installment. The facility bears interest at a rate per annum equal to SOFR plus a margin of 2.16%. In connection with the Tuva Knutsen Acquisition, the Partnership and KNOT Shuttle Tankers AS became the sole guarantors. The facility is secured by a mortgage on the Tuva Knutsen. The facility matures in January 2027.
Assets Owned by Knutsen NYK
Pursuant to the omnibus agreement the Partnership entered into with Knutsen NYK at the time of its initial public offering, the Partnership has the option to acquire from Knutsen NYK any offshore shuttle tankers that Knutsen NYK acquires or owns that are employed under charters for periods of five or more years.
There can be no assurance that the Partnership will acquire any additional vessels from Knutsen NYK. Given the relationship between the Partnership and Knutsen NYK, any such acquisition would be subject to the approval of the Conflicts Committee of the Partnership’s Board of Directors.
Knutsen NYK owns, or has ordered, the following vessels and has entered into the following charters:
- In November 2021, Live Knutsen was delivered to Knutsen NYK from the yard in China and commenced on a five-year time charter contract with Galp Sinopec for operation in Brazil. Galp has options to extend the charter for up to a further six years.
- In June 2022, Daqing Knutsen was delivered to Knutsen NYK from the yard in China and commenced on a five-year time charter contract with PetroChina International (America) Inc for operation in Brazil. The charterer has options to extend the charter for up to a further five years.
- In July 2022, Frida Knutsen was delivered to Knutsen NYK from the yard in Korea and commenced in December 2022 on a seven-year time charter contact with Eni for operation in North Sea. The charterer has options to extend the charter for up to a further three years.
- In August 2022, Sindre Knutsen, was delivered to Knutsen NYK from the yard in Korea and commenced in September 2023 on a five-year time charter contract with Eni for operation in the North Sea. The charterer has options to extend the charter for up to a further five years.
- In November 2022, Knutsen NYK entered into a new fifteen-year time charter contract with Petrobras for a vessel to be constructed and which will operate in Brazil where the charterer has an option to extend the charter by up to five further years. The vessel will be built in China and is expected to be delivered in late 2025.
- In February 2024, Knutsen NYK entered into a new ten-year time charter contract with Petrobras for each of three vessels to be constructed and which will operate in Brazil, where the charterer has an option to extend each charter by up to five further years. The vessels will be built in China and are expected to be delivered over 2026 – 2027.
- In August 2024, Knutsen NYK entered into a new seven-year time charter contract with Petrorio for a vessel to be constructed and which will operate in Brazil where the charterer has an option to extend the charter by up to eight further years. The vessel will be built in China and is expected to be delivered early in 2027.
- In October 2024, Hedda Knutsen was delivered to Knutsen NYK from the yard in China and commenced in December 2024 on a ten-year time charter contract with Petrobras for operation in Brazil. Petrobras has the option to extend the charter by up to five further years.
Outlook
At September 30, 2024, the Partnership’s fleet of eighteen vessels had an average age of 9.9 years, and the Partnership had charters with an average remaining fixed duration of 2.8 years, with the charterers of the Partnership’s vessels having options to extend their charters by an additional 2.4 years on average. The Partnership had $980 million of remaining contracted forward revenue at September 30, 2024, excluding charterers’ options and excluding contracts agreed or signed after that date.
The market for shuttle tankers in Brazil, where fourteen of our vessels operated during Q3 2024, has continued to tighten, driven by a significant pipeline of new production growth over the coming years, a limited newbuild order book, and typical long-term project viability requiring a Brent oil price of only $35 per barrel. While the Dan Sabia stands out among the Partnership’s fleet as being of a smaller size than is optimal in today’s Brazilian market, we remain in discussions with our customers and continue to evaluate all our options for the Dan Sabia, including but not limited to redeployment in the tightening Brazilian market, deployment to the North Sea, charter to Knutsen NYK (subject to negotiation and approvals), short term conventional tanker work and sale.
Shuttle tanker demand in the North Sea has remained subdued, driven by the impact of COVID-19-related project delays. We expect these conditions to persist for several more quarters until new oil production projects that are anticipated come on stream, most notably the long-anticipated Johan Castberg field in the Barents Sea, which is scheduled to come online early next year.
Looking ahead, based on supply and demand factors with significant forward visibility and committed capital from industry participants, we believe that the overall medium and long-term outlook for the shuttle tanker market remains favourable.
In the meantime, the Partnership intends to pursue long-term visibility from its charter contracts, build its liquidity, and position itself to benefit from its market-leading position in an improving shuttle tanker market.
About KNOT Offshore Partners LP
KNOT Offshore Partners LP owns, operates and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea.
KNOT Offshore Partners LP is structured as a publicly traded master limited partnership but is classified as a corporation for U.S. federal income tax purposes, and thus issues a Form 1099 to its unitholders, rather than a Form K-1. KNOT Offshore Partners LP’s common units trade on the New York Stock Exchange under the symbol “KNOP”.
The Partnership plans to host a conference call on Thursday December 5, 2024 at 9:30 AM (Eastern Time) to discuss the results for Q3 2024. All unitholders and interested parties are invited to listen to the live conference call by choosing from the following options:
- By dialing 1-833-470-1428 from the US, dialing 1-833-950-0062 from Canada or 1-404-975-4839 if outside North America – please join the KNOT Offshore Partners LP call using access code 794660.
- By accessing the webcast on the Partnership’s website: www.knotoffshorepartners.com.
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||
|
(U.S. Dollars in thousands) |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
|
Time charter and bareboat revenues |
|
$ |
75,682 |
|
|
$ |
73,437 |
|
|
$ |
72,188 |
|
|
$ |
222,481 |
|
|
$ |
205,045 |
|
|
Voyage revenues (1) |
|
|
124 |
|
|
|
351 |
|
|
|
10 |
|
|
|
3,190 |
|
|
|
8,849 |
|
|
Loss of hire insurance recoveries |
|
|
— |
|
|
|
78 |
|
|
|
— |
|
|
|
78 |
|
|
|
2,335 |
|
|
Other income |
|
|
486 |
|
|
|
554 |
|
|
|
485 |
|
|
|
1,595 |
|
|
|
1,458 |
|
|
Total revenues |
|
|
76,292 |
|
|
|
74,420 |
|
|
|
72,683 |
|
|
|
227,344 |
|
|
|
217,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gain from disposal of vessel |
|
|
703 |
|
|
|
— |
|
|
|
— |
|
|
|
703 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Vessel operating expenses |
|
|
29,453 |
|
|
|
26,952 |
|
|
|
23,164 |
|
|
|
82,314 |
|
|
|
67,894 |
|
|
Voyage expenses and commission (2) |
|
|
951 |
|
|
|
584 |
|
|
|
375 |
|
|
|
3,170 |
|
|
|
5,230 |
|
|
Depreciation |
|
|
27,902 |
|
|
|
27,748 |
|
|
|
27,472 |
|
|
|
83,392 |
|
|
|
83,308 |
|
|
Impairment (3) |
|
|
— |
|
|
|
16,384 |
|
|
|
— |
|
|
|
16,384 |
|
|
|
49,649 |
|
|
General and administrative expenses |
|
|
1,475 |
|
|
|
1,426 |
|
|
|
1,083 |
|
|
|
4,538 |
|
|
|
4,571 |
|
|
Total operating expenses |
|
|
59,781 |
|
|
|
73,094 |
|
|
|
52,094 |
|
|
|
189,798 |
|
|
|
210,652 |
|
|
Operating income (loss) |
|
|
17,214 |
|
|
|
1,326 |
|
|
|
20,589 |
|
|
|
38,249 |
|
|
|
7,035 |
|
|
Finance income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest income |
|
|
857 |
|
|
|
897 |
|
|
|
932 |
|
|
|
2,582 |
|
|
|
2,476 |
|
|
Interest expense |
|
|
(16,857 |
) |
|
|
(16,863 |
) |
|
|
(18,493 |
) |
|
|
(51,185 |
) |
|
|
(53,969 |
) |
|
Other finance income/(expense) |
|
|
(179 |
) |
|
|
177 |
|
|
|
(228 |
) |
|
|
(271 |
) |
|
|
(413 |
) |
|
Realized and unrealized gain (loss) on derivative instruments (4) |
|
|
(4,561 |
) |
|
|
1,797 |
|
|
|
4,361 |
|
|
|
2,238 |
|
|
|
10,175 |
|
|
Net gain (loss) on foreign currency transactions |
|
|
28 |
|
|
|
28 |
|
|
|
14 |
|
|
|
(170 |
) |
|
|
(13 |
) |
|
Total finance income (expense) |
|
|
(20,712 |
) |
|
|
(13,964 |
) |
|
|
(13,414 |
) |
|
|
(46,806 |
) |
|
|
(41,744 |
) |
|
Income (loss) before income taxes |
|
|
(3,498 |
) |
|
|
(12,638 |
) |
|
|
7,175 |
|
|
|
(8,557 |
) |
|
|
(34,709 |
) |
|
Income tax benefit (expense) |
|
|
(275 |
) |
|
|
(213 |
) |
|
|
5,466 |
|
|
|
(628 |
) |
|
|
5,663 |
|
|
Net income (loss) |
|
$ |
(3,773 |
) |
|
$ |
(12,851 |
) |
|
$ |
12,641 |
|
|
$ |
(9,185 |
) |
|
$ |
(29,046 |
) |
|
Weighted average units outstanding (in thousands of units): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common units |
|
|
34,045 |
|
|
|
34,045 |
|
|
|
34,045 |
|
|
|
34,045 |
|
|
|
34,045 |
|
|
Class B units (5) |
|
|
252 |
|
|
|
252 |
|
|
|
252 |
|
|
|
252 |
|
|
|
252 |
|
|
General Partner units |
|
|
640 |
|
|
|
640 |
|
|
|
640 |
|
|
|
640 |
|
|
|
640 |
|
|
(1) |
Voyage revenues are revenues unique to spot voyages. |
|
|
(2) |
Voyage expenses and commission are expenses unique to spot voyages, including bunker fuel expenses, port fees, cargo loading and unloading expenses, agency fees and commission. |
|
|
(3) |
The carrying value of each of the Dan Cisne and the Dan Sabia was written down to its estimated fair value as of June 30, 2023 and 2024. |
|
|
(4) |
Realized gain (loss) on derivative instruments relates to amounts the Partnership actually received (paid) to settle derivative instruments, and the unrealized gain (loss) on derivative instruments relates to changes in the fair value of such derivative instruments, as detailed in the table below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||
|
(U.S. Dollars in thousands) |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
|
Realized gain (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest rate swap contracts |
|
$ |
3,772 |
|
|
$ |
3,987 |
|
|
$ |
3,963 |
|
|
$ |
11,821 |
|
|
$ |
10,506 |
|
|
Foreign exchange forward contracts |
|
|
— |
|
|
|
— |
|
|
|
(79 |
) |
|
|
— |
|
|
|
(79 |
) |
|
Total realized gain (loss): |
|
|
3,772 |
|
|
|
3,987 |
|
|
|
3,884 |
|
|
|
11,821 |
|
|
|
10,427 |
|
|
Unrealized gain (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest rate swap contracts |
|
|
(8,333 |
) |
|
|
(2,190 |
) |
|
|
352 |
|
|
|
(9,583 |
) |
|
|
(252 |
) |
|
Foreign exchange forward contracts |
|
|
— |
|
|
|
— |
|
|
|
125 |
|
|
|
— |
|
|
|
— |
|
|
Total unrealized gain (loss): |
|
|
(8,333 |
) |
|
|
(2,190 |
) |
|
|
477 |
|
|
|
(9,583 |
) |
|
|
(252 |
) |
|
Total realized and unrealized gain (loss) on derivative instruments: |
|
$ |
(4,561 |
) |
|
$ |
1,797 |
|
|
$ |
4,361 |
|
|
$ |
2,238 |
|
|
$ |
10,175 |
|
|
(5) |
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 incentive distribution rights (“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 (the “IDR Exchange”). As of September 30, 2024, 420,675 of the Class B Units had been converted to common units. |
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET |
||||||
|
(U.S. Dollars in thousands) |
|
At September 30, 2024 |
|
At December 31, 2023 |
||
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
67,225 |
|
$ |
63,921 |
|
Amounts due from related parties |
|
|
1,909 |
|
|
348 |
|
Inventories |
|
|
3,833 |
|
|
3,696 |
|
Derivative assets |
|
|
9,124 |
|
|
13,019 |
|
Other current assets |
|
|
9,745 |
|
|
8,795 |
|
Total current assets |
|
|
91,836 |
|
|
89,779 |
|
|
|
|
|
|
|
|
|
Long-term assets: |
|
|
|
|
|
|
|
Vessels, net of accumulated depreciation |
|
|
1,490,496 |
|
|
1,492,998 |
|
Right-of-use assets |
|
|
1,564 |
|
|
2,126 |
|
Deferred tax assets |
|
|
3,654 |
|
|
4,358 |
|
Derivative assets |
|
|
3,639 |
|
|
7,229 |
|
Accrued income |
|
|
3,406 |
|
|
— |
|
Total Long-term assets |
|
|
1,502,759 |
|
|
1,506,711 |
|
Total assets |
|
$ |
1,594,595 |
|
$ |
1,596,490 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Trade accounts payable |
|
$ |
6,317 |
|
$ |
10,243 |
|
Accrued expenses |
|
|
14,691 |
|
|
14,775 |
|
Current portion of long-term debt |
|
|
174,888 |
|
|
98,960 |
|
Current lease liabilities |
|
|
1,171 |
|
|
982 |
|
Income taxes payable |
|
|
35 |
|
|
44 |
|
Current portion of contract liabilities |
|
|
2,889 |
|
|
— |
|
Prepaid charter |
|
|
4,369 |
|
|
467 |
|
Amount due to related parties |
|
|
5,529 |
|
|
2,106 |
|
Total current liabilities |
|
|
209,889 |
|
|
127,577 |
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
Long-term debt |
|
|
766,895 |
|
|
857,829 |
|
Lease liabilities |
|
|
393 |
|
|
1,144 |
|
Derivative liabilities |
|
|
324 |
|
|
— |
|
Contract liabilities |
|
|
24,500 |
|
|
— |
|
Deferred tax liabilities |
|
|
123 |
|
|
127 |
|
Deferred revenues |
|
|
1,985 |
|
|
2,336 |
|
Total long-term liabilities |
|
|
794,220 |
|
|
861,436 |
|
Total liabilities |
|
|
1,004,109 |
|
|
989,013 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Series A Convertible Preferred Units |
|
|
84,308 |
|
|
84,308 |
|
Equity: |
|
|
|
|
|
|
|
Partners’ capital: |
|
|
|
|
|
|
|
Common unitholders |
|
|
493,336 |
|
|
510,013 |
|
Class B unitholders |
|
|
3,871 |
|
|
3,871 |
|
General partner interest |
|
|
8,971 |
|
|
9,285 |
|
Total partners’ capital |
|
|
506,178 |
|
|
523,169 |
|
Total liabilities and equity |
|
$ |
1,594,595 |
|
$ |
1,596,490 |
Contacts
KNOT Offshore Partners LP
Derek Lowe
