Highlights
For the three months ended June 30, 2016, KNOT Offshore
Partners LP (“KNOT Offshore Partners” or the “Partnership”):
- Generated highest ever quarterly
revenues of $43.1 million, operating income of
$20.2 million and net income of $11.6 million.
- Generated highest ever quarterly
Adjusted EBITDA of $34.1 million.1
- Generated highest ever quarterly
distributable cash flow of $18.5 million1 with a distribution
coverage ratio of 1.23.1
- Achieved strong operational performance
with 99.9% utilization of the fleet.
In addition:
- On June 30, 2016, the Partnership
entered into an amended and restated senior secured credit
facility, which includes a new revolver facility tranche of $15
million, in order to further strengthen the balance sheet and
increase financial flexibility.
- On May 18, 2016, the Partnership’s
subordinated units, all of which were held by Knutsen NYK Offshore
Tankers (“Knutsen NYK”), were converted to common units on a
one-for one basis.
- Due to the increase in the price of the
Partnership’s common units from $16.40 on March 31, 2016 to $18.56
on June 30, 2016, the Partnership and the Partnership’s general
partner elected not to repurchase any common units under the common
unit repurchase program during the second quarter of 2016.
Subsequent events:
- On July 15, 2016, the Partnership
declared a cash distribution of $0.52 per unit with respect to the
quarter ended June 30, 2016 to be paid on August 15, 2016 to
unitholders of record as of the close of business on August 3,
2016.
Financial Results Overview
Total revenues were $43.1 million for the three months ended
June 30, 2016 (the “second quarter”) compared to $42.0 million for
the three months ended March 31, 2016 (the “first quarter”), an
increase of $1.1 million. The increase was mainly due to a full
quarter of earnings from the Bodil Knutsen as the vessel incurred
21 days of off-hire during the first quarter in connection with its
scheduled drydocking.
Vessel operating expenses for the second quarter of 2016 were
$8.0 million, compared to $7.6 million in the first quarter.
General and administrative expenses were $0.9 million for the
second quarter of 2016, a decrease of $0.4 million compared to the
first quarter of 2016 mainly due to year end close expenses in the
first quarter.
As a result, operating income for the second quarter of 2016 was
$20.2 million compared to $19.2 million in the first quarter
of 2016.
Net income for the three months ended June 30, 2016 was $11.6
million compared to $10.7 million for the three months ended
March 31, 2016. Net income was impacted by the recognition of
realized and unrealized losses on derivative instruments of
$3.2 million in the second quarter of 2016, consistent with
realized and unrealized losses on derivative instruments of $3.2
million in the first quarter of 2016. The unrealized non-cash
element of the mark-to-market losses was a $1.6 million loss
for the three months ended June 30, 2016 and a $2.3 million loss
for the three months ended March 31, 2016. Of the unrealized loss
for the second quarter of 2016, $1.5 million related to
mark-to-market losses on interest rate swaps due to a decrease in
long term interest rates.
Net income for the three months ended June 30, 2016 increased by
$4.7 million compared to net income for the three months ended June
30, 2015. The increase was primarily due to (i) an increase in
operating income of $2.8 million due to earnings from the Dan Sabia
and the Ingrid Knutsen being included in the Partnership’s results
of operations from June 15, 2015 and October 15, 2015,
respectively, (ii) a $6.2 million goodwill impairment charge
during the three months ended June 30, 2015 and (iii) a $4.5
million increase in total finance expense primarily caused by a
$3.2 million realized and unrealized loss on derivative instruments
in the three months ended June 30, 2016 compared to a $0.3 million
realized and unrealized gain on derivative instruments in the three
months ended June 30, 2015.
All ten of the Partnership’s vessels operated well throughout
the second quarter of 2016 with 99.9% utilization of the fleet.
Distributable cash flow was $18.5 million for the second quarter
of 2016, compared to $17.9 million for the first quarter of
2016. The increase in the distributable cash flow is mainly due to
increased earnings from the Bodil Knutsen as a result of its
drydocking during the first quarter. The distribution declared for
the second quarter of 2016 was $0.52 per unit, equivalent to an
annualized distribution of $2.08.
Amended and Restated Credit Facility
On June 30, 2016, the Partnership’s subsidiaries KNOT Shuttle
Tankers 18 AS, KNOT Shuttle Tankers 17 AS and Knutsen Shuttle
Tankers 13 AS, as borrowers, entered into an amended and restated
senior secured credit facility (the “Amended Senior Secured Loan
Facility”), which amended the Partnership’s original $240 million
senior syndicated secured loan facility secured by the shuttle
tankers Bodil Knutsen, Carmen Knutsen and Windsor Knutsen. The
Amended Senior Secured Loan Facility includes a new revolving
credit facility tranche of $15 million, bringing the total
revolving credit commitments under the facility to $35 million. The
new revolving credit facility matures in June 2019, bears interest
at LIBOR plus a fixed margin of 2.5% and has a commitment fee equal
to 40% of the margin of the revolving facility tranche calculated
on the daily undrawn portion of such tranche. The other material
terms from the original $240 million facility remain unaltered
including the margin on the existing $ 20 million revolver credit
facility which will remain at 2.125%
Financing and Liquidity
As of June 30, 2016, the Partnership had $55.7 million in
available liquidity which consisted of cash and cash equivalents of
$25.7 million and an undrawn revolving credit facility of
$30 million. The undrawn revolving credit facility is
available until June 10, 2019. The Partnership’s total interest
bearing debt outstanding as of June 30, 2016 was
$648.5 million ($652.0 million net of debt issuance cost). The
average margin paid on the Partnership’s outstanding debt during
the quarter ended June 30, 2016 was approximately 2.3% over
LIBOR.
As of June 30, 2016, the Partnership had entered into
foreign exchange forward contracts, selling a total notional amount
of $35.0 million against the NOK at an average exchange rate
of NOK 8.36 per 1.0 U.S. Dollar. These foreign
exchange forward contracts are economic hedges for certain vessel
operating expenses and general expenses in NOK.
As of June 30, 2016, the Partnership had entered into various
interest rate swap agreements for a total notional amount of
$407.7 million to hedge against the interest rate risks of its
variable rate borrowings. In March 2016, the Partnership extended
$125 million of interest swap agreements and in April 2016,
extended an additional $25 million of interest swap agreements.
These $150 million of interest rate swaps have an average interest
rate of 1.4% and extended the tenor of the Partnership’s existing
interest rate swaps by an average of 2.3 years from the second half
of 2018 to the second half of 2020. As of June 30, 2016, the
Partnership receives interest based on three or six month LIBOR and
pays a weighted average interest rate of 1.54% under its interest
rate swap agreements, which have an average maturity of
approximately 3.5 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 June 30, 2016, the Partnership’s net exposure to floating
interest rate fluctuations on its outstanding debt was
approximately $218.6 million based on total interest bearing
debt outstanding of $652.0 million, less interest rate swaps
of $407.7 million and less cash and cash equivalents of
$25.7 million.
The Partnership’s outstanding interest bearing debt of
$652.0 million as of June 30, 2016 is repayable as
follows:
Annualrepayment
Balloonrepayment (US $ in thousands) Remainder of
2016 $ 30,042 $ — 2017 50,084 — 2018 48,495 154,927 2019 28,582
237,678 2020 17,650 — 2021 and thereafter 71,650
12,940 Total $ 246,503 $ 405,545
Outlook
To date, during the third quarter of 2016, utilization of the
Partnership’s fleet has been 100%. Operating income is expected to
be at same level as in the second quarter of 2016, as there is no
further scheduled off-hire for any of the Partnership’s vessels for
the remainder of 2016.
As of June 30, 2016, the Partnership’s fleet of ten vessels had
an average remaining fixed contract duration of 5.1 years. In
addition, the charterers of the Partnership’s time charter vessels
have options to extend their charters by an additional
2.5 years on average.
The Partnership has or expects to receive options to acquire
five vessels controlled by Knutsen NYK pursuant to the terms of the
omnibus agreement entered into in connection with the Partnerships
initial public offering (“IPO”). One of these vessels, the Raquel
Knutsen, delivered in 2015 and is chartered to Repsol Sinopec
Brazil under a time charter that expires in 2025, with options to
extend until 2030. Four vessels are under construction in South
Korea and China. As of June 30, 2016, the average remaining fixed
contract duration for these five vessels is 5.8 years. In addition,
the charterers have options to extend these charters by 11.2 years
on average.
Pursuant to the omnibus agreement, the Partnership also 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
vessels from Knutsen NYK.
The Board believes that there may be opportunities for growth of
the Partnership, which may include current identified acquisition
candidates, and that the demand for offshore shuttle tankers will
continue to grow over time based on identified projects. Future
developments will influenced by the rate of growth of offshore oil
production activities when the existing projects are completed.
The Board is pleased with the results of operations of the
Partnership for the quarter ended June 30, 2016.
About KNOT Offshore Partners LP
KNOT Offshore Partners owns operates and acquires shuttle
tankers under long-term charters in the offshore oil production
regions of the North Sea and Brazil. KNOT Offshore Partners owns
and operates a fleet of ten offshore shuttle tankers with an
average age of 4.6 years.
KNOT Offshore Partners is structured as a publicly traded master
limited partnership. KNOT Offshore Partners’ common units trade on
the New York Stock Exchange under the symbol “KNOP.”
The Partnership plans to host a conference call on Thursday,
August 11, 2016 at noon (Eastern Time) to discuss the results for
the second quarter of 2016, and invites all unitholders and
interested parties to listen to the live conference call by
choosing from the following options:
- By dialing 1-855-209-8259 or
1-412-542-4105, if outside North America.
- By accessing the webcast, which will be
available for the next seven days on the Partnership’s website:
www.knotoffshorepartners.com
August 10, 2016
KNOT Offshore Partners L.P.
Aberdeen, United Kingdom
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
Three Months
Ended Six Months Ended (USD in thousands)
June30, 2016 March31, 2016
June30, 2015 June 30, 2016
June 30, 2015 Time charter and bareboat revenues (1) $
42,864 $ 41,826 $ 36,981 $ 84,690 $
73,052 Other income (2) 199 200 2 399 151
Total revenues 43,063 42,026
36,983 85,089 73,203 Vessel operating expenses
7,975 7,647 7,164 15,622 13,971 Depreciation 13,913 13,892 11,560
27,805 22,960 General and administrative expenses 948 1,308 984
2,256 2,052 Goodwill impairment charge — — 6,217 — 6,217
Total operating expenses 22,836 22,847
25,925 45,683 45,200 Operating income
20,227 19,179 11,058 39,406
28,003 Finance income (expense): Interest income 0 2
2 3 3 Interest expense (5,055 ) (5,029 ) (4,212 ) (10,084 ) (8,398
) Other finance expense (334 ) (267 ) (79 ) (601 ) (99 ) Realized
and unrealized gain (loss) on derivative instruments(3) (3,176 )
(3,184 ) 253 (6,360 ) (5,370 ) Net gain (loss) on foreign currency
transactions (82 ) (35 ) (132) (117 ) (60 )
Total finance
expense (8,646 ) (8,513 )
(4,168 ) (17,159 ) (13,924
) Income before income taxes 11,581
10,666 6,890 22,247 14,079 Income tax
benefit (expense) (3 ) (3 ) (3 ) (6 ) (6 )
Net income $
11,578 $
10,663 $
6,887 $
22,241 $
14,073 Weighted average units outstanding (in
thousands of units): Common units (4) 22,581 18,627 15,346
20,604 14,581 Subordinated units(4) 4,613 8,568 8,568 6,590 8,568
General partner units 559 559 488 559 472
- Time charter revenues for the second
and first quarter of 2016 include a non-cash item of approximately
$1.0 million and $1.3 million, respectively in reversal of contract
liability provision, income recognition of prepaid charter hire and
accrued income for the Carmen Knutsen based on average charter rate
for the fixed period. Time charter revenues for the second quarter
of 2015 include a non-cash item of approximately $0.9 million
in reversal of contract liability provision and income recognition
of prepaid charter hire.
- Other income for the second and first
quarter of 2016 is mainly related to guarantee income from Knutsen
NYK. Pursuant to the omnibus agreement, Knutsen NYK agreed to
guarantee the payments of the hire rate that is equal to or greater
than the hire rate payable under the initial charters of the Bodil
Knutsen and the Windsor Knutsen for a period of five years from the
closing date of the IPO. In October 2015, the Windsor Knutsen
commenced operating under a new BG Group time charter. The hire
rate for the new charter is below the initial charter hire rate and
the difference between the new hire rate and the initial rate is
paid by Knutsen NYK.
- The mark-to-market net loss related to
interest rate swaps and foreign exchange contracts for the three
months end June 30, 2016 includes realized losses of $1.6 million
and unrealized losses of $1.6 million. Of the net unrealized
loss for this quarter, a $0.1 million loss relates to foreign
exchange contracts and hedging operational costs in NOK.The
mark-to-market net loss related to interest rate swaps and foreign
exchange contracts for the three months ended March 31, 2016
includes realized losses of $0.9 million and unrealized losses of
$2.3 million. Of the net unrealized loss for this quarter,
$2.1 million gain relates to foreign exchange contracts and
hedging operational costs in NOK.The mark-to-market net loss
related to interest rate swaps and foreign exchange contracts for
the three months ended June 30, 2015 includes unrealized gain
of $1.6 million and realized loss of $1.3 million. Of the
unrealized gain for this quarter, $0.4 million relates to foreign
exchange contracts hedging operational costs in NOK.
- On May 18, 2016 all subordinated units
converted into common units on a one-for-one basis.
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEET
At June 30,2016 At December
31,2015 (USD in thousands)
ASSETS Current
assets: Cash and cash equivalents $ 25,667 $ 23,573 Amounts due
from related parties 25 58 Inventories 774 849 Derivative assets
232 — Other current assets (1) 1,705 1,800
Total current assets 28,403
26,280 Long-term assets: Vessels and
equipment: Vessels 1,351,838 1,351,219 Less accumulated
depreciation (183,598 ) (158,292 ) Net
property, plant, and equipment 1,168,240 1,192,927
Derivative assets — 695 Accrued income 706 —
Total assets $ 1,197,349 $
1,219,902 LIABILITIES AND PARTNERS’ EQUITY
Current liabilities: Trade accounts payable $ 1,949 $ 1,995
Accrued expenses 3,469 3,888 Current portion of long-term debt (1)
53,888 48,535 Derivative liabilities 3,747 5,138 Income taxes
payable 18 249 Contract liabilities 1,518 1,518 Prepaid charter and
deferred revenue 6,999 3,365 Amount due to related parties
492 848
Total current liabilities
72,080 65,536 Long-term
liabilities: Long-term debt (1) 594,621 619,187 Derivative
liabilities 6,028 1,232 Contract liabilities 8,998 9,757 Deferred
tax liabilities 919 877 Other long-term liabilities 1,799
2,543
Total liabilities 684,445
699,132 Equity: Partners’ equity:
Common unitholders 502,756 411,317 Subordinated unitholders —
99,158 General partner interest 10,148 10,295
Total partners’ equity 512,904
520,770 Total liabilities and equity $
1,197,605 $ 1,219,902
- Effective January 1, 2016, the
Partnership implemented ASU 2015-03, Interest – Imputation of
Interest (Subtopic 835-30), Simplifying the Presentation of Debt
Issuance Costs, which requires that debt issuance costs related to
a recognized debt liability be presented in the balance sheet as a
direct deduction from the carrying amount of that debt liability
rather than as an asset. The recognition and measurement guidance
for debt issuance costs is not affected. Therefore, these costs
will continue to be amortized as interest expense using the
effective interest method. The new guidance is applied
retrospectively for all periods presented. As of June 30, 2016 and
December 31, 2015 the carrying amount of the deferred debt issuance
cost was $3.5 million and $4.0 million, respectively.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
Six months endedJune 30, (USD in thousands)
2016 2015 Cash flows provided by operating
activities: Net income $ 22,241 $ 14,073 Adjustments to reconcile
net income to cash provided by operating activities: Depreciation
27,805 22,960 Amortization of contract intangibles / liabilities
(759 ) (759 ) Amortization of deferred revenue (886) (957 )
Amortization of deferred debt issuance cost 573 570 Goodwill
impairment charge — 6,217 Drydocking expenditure (2,595) — Income
tax expense 6 6 Income taxes paid (241) (336 ) Unrealized (gain)
loss on derivative instruments 3,868 3,011 Unrealized (gain) loss
on foreign currency transactions 63 (46) Changes in operating
assets and liabilities Decrease (increase) in amounts due from
related parties 33 968 Decrease (increase) in inventories 75 124
Decrease (increase) in other current assets 94 (1,903 ) Increase
(decrease) in trade accounts payable (87) 825 Increase (decrease)
in accrued expenses (419) 567 Decrease (increase) in accrued
revenue (706) — Increase (decrease) prepaid revenue 3,776 432
Increase (decrease) in amounts due to related parties (356) (1,625
)
Net cash provided by operating activities
52,485 44,127 Cash flows from investing
activities: Disposals (additions) to vessel and equipment (521)
(770) Acquisition of Dan Sabia (net of cash acquired) — (36,843)
Net cash used in investing activities (521 )
(37,613) Cash flows from financing activities:
Proceeds from long-term debt 5,000 — Repayment of long-term debt
(24,642) (46,859 ) Repayment of long-term debt from related parties
— (12,000) Payment on debt issuance cost (144) (8) Cash
distribution (30,107) (23,514 ) Proceeds from public offering, net
of underwriters’ discount — 116,924 Offering cost — (321 )
Net cash provided by (used in) financing activities
(49,893) 34,222 Effect of exchange rate
changes on cash 23 (79 ) Net increase in cash and cash equivalents
2,094 40,657 Cash and cash equivalents at the beginning of the
period 23,573 30,746
Cash and cash equivalents at the end
of the period $ 25,667 $ 71,403
APPENDIX A—RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
Distributable Cash Flow (“DCF”)
Distributable cash flow represents net income adjusted for
depreciation, unrealized gains and losses from derivatives,
unrealized foreign exchange gains and losses, goodwill impairment
charges, other non-cash items and estimated maintenance and
replacement capital expenditures. Estimated maintenance and
replacement capital expenditures, including estimated expenditures
for drydocking, represent capital expenditures required to maintain
over the long-term the operating capacity of, or the revenue
generated by, the Partnership’s capital assets. The Partnership
believes distributable cash flow is an important measure of
operating performance used by management and investors in
publicly-traded partnerships to compare cash generating performance
of the Partnership from period to period and to compare the cash
generating performance for specific periods to the cash
distributions (if any) that are expected to be paid to our
unitholders. Distributable cash flow is a non-GAAP financial
measure and should not be considered as an alternative to net
income or any other indicator of KNOT Offshore Partners’
performance calculated in accordance with GAAP. The table below
reconciles distributable cash flow to net income, the most directly
comparable GAAP measure.
(USD in thousands)
Three MonthsEnded June
30,2016(unaudited) Three MonthsEnded
March 31, 2016(unaudited) Net income $
11,578 $ 10,663 Add: Depreciation 13,913
13,892 Other non-cash items; deferred costs amortization debt 287
287 Unrealized losses from interest rate derivatives and foreign
exchange currency contracts 1,608 4,348 Less: Estimated maintenance
and replacement capital expenditures (including drydocking reserve)
(7,894 ) (7,894 ) Other non-cash items; deferred revenue and
accrued income (1,032 ) (1,319 ) Unrealized gains from interest
rate derivatives and foreign exchange currency contracts —
(2,089 )
Distributable cash flow $
18,460 $ 17,888 Distributions declared
$ 15,027 $ 15,095
Distribution coverage ratio(1) 1.23 1.19
(1) Distribution coverage ratio is equal to distributable
cash flow divided by distributions declared for the period
presented.
Adjusted EBITDA
Adjusted EBITDA refers to earnings before interest,
depreciation, taxes, goodwill impairment charges and other
financial items (including other finance expenses, realized and
unrealized gain (loss) on derivative instruments and net gain
(loss) on foreign currency transactions). Adjusted EBITDA is a
non-GAAP financial measure used by investors to measure the
Partnership’s performance.
Adjusted EBITDA is used as a supplemental financial measure by
management and external users of financial statements, such as
investors, to assess the Partnership’s financial and operating
performance. The Partnership believes that Adjusted EBITDA assists
its management and investors by increasing the comparability of its
performance from period to period and against the performance of
other companies in its industry that provide Adjusted EBITDA
information. This increased comparability is achieved by excluding
the potentially disparate effects between periods or companies of
interest, other financial items, taxes, goodwill impairment charges
and depreciation, which items are affected by various and possibly
changing financing methods, capital structure and historical cost
basis and which items may significantly affect net income between
periods. The Partnership believes that including Adjusted EBITDA as
a financial measure benefits investors in (a) selecting
between investing in the Partnership and other investment
alternatives and (b) monitoring the Partnership’s ongoing
financial and operational strength in assessing whether to continue
to hold common units. Adjusted EBITDA is a non-GAAP financial
measure and should not be considered as an alternative to net
income or any other indicator of Partnership performance calculated
in accordance with GAAP. The table below reconciles Adjusted EBITDA
to net income, the most directly comparable GAAP measure.
(USD in thousands)
Three Months Ended
June
30,2016(unaudited)
Three Months Ended
March
31,2016(unaudited)
Net income $ 11,578 $ 10,663
Interest income — (2) Interest expense 5,055 5,029 Depreciation
13,913 13,892 Income tax benefit 3 3 EBITDA 30,549 29,585 Other
financial items (a) 3,592 3,486
Adjusted
EBITDA $ 34,141 $ 33,071
(a) Other financial items consist of other finance expense,
realized and unrealized gain (loss) on derivative instruments and
net gain (loss) on foreign currency transactions
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements
concerning future events and KNOT Offshore Partners’ operations,
performance and financial condition. Forward-looking statements
include, without limitation, any statement that may predict,
forecast, indicate or imply future results, performance or
achievements, and may contain the words “believe,” “anticipate,”
“expect,” “estimate,” “project,” “will be,” “will continue,” “will
likely result,” “plan,” “intend” or words or phrases of similar
meanings. These statements involve known and unknown risks and are
based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond KNOT Offshore Partners’ control. Actual
results may differ materially from those expressed or implied by
such forward-looking statements. Forward-looking statements include
statements with respect to, among other things:
- market trends in the shuttle tanker or
general tanker industries, including hire rates, factors affecting
supply and demand, and opportunities for the profitable operations
of shuttle tankers;
- Knutsen NYK’s and KNOT Offshore
Partners’ ability to build shuttle tankers and the timing of the
delivery and acceptance of any such vessels by their respective
charterers;
- forecasts of KNOT Offshore Partners’
ability to make or increase distributions on its units and the
amount of any such distributions;
- KNOT Offshore Partners’ ability to
integrate and realize the expected benefits from acquisitions;
- KNOT Offshore Partners’ anticipated
growth strategies;
- the effects of a worldwide or regional
economic slowdown;
- turmoil in the global financial
markets;
- fluctuations in currencies and interest
rates;
- fluctuations in the price of oil;
- general market conditions, including
fluctuations in hire rates and vessel values;
- changes in KNOT Offshore Partners’
operating expenses, including drydocking and insurance costs and
bunker prices;
- KNOT Offshore Partners’ future
financial condition or results of operations and future revenues
and expenses;
- the repayment of debt and settling of
any interest rate swaps;
- KNOT Offshore Partners’ ability to make
additional borrowings and to access debt and equity markets;
- planned capital expenditures and
availability of capital resources to fund capital
expenditures;
- KNOT Offshore Partners’ ability to
maintain long-term relationships with major users of shuttle
tonnage;
- KNOT Offshore Partners’ ability to
leverage Knutsen NYK’s relationships and reputation in the shipping
industry;
- KNOT Offshore Partners’ ability to
purchase vessels from Knutsen NYK in the future;
- KNOT Offshore Partners’ continued
ability to enter into long-term charters, which KNOT Offshore
Partners defines as charters of five years or more;
- KNOT Offshore Partners’ ability to
maximize the use of its vessels, including the re-deployment or
disposition of vessels no longer under long-term charter;
- the financial condition of KNOT
Offshore Partners’ existing or future customers and their ability
to fulfil their charter obligations;
- timely purchases and deliveries of
newbuilds;
- future purchase prices of newbuilds and
secondhand vessels;
- any impairment of the value of KNOT
Offshore Partners’ vessels;
- KNOT Offshore Partners’ ability to
compete successfully for future chartering and newbuild
opportunities;
- acceptance of a vessel by its
charterer;
- termination dates and extensions of
charters;
- the expected cost of, and KNOT Offshore
Partners’ ability to, comply with governmental regulations,
maritime self-regulatory organization standards, as well as
standard regulations imposed by its charterers applicable to KNOT
Offshore Partners’ business;
- availability of skilled labor, vessel
crews and management;
- KNOT Offshore Partners’ general and
administrative expenses and its fees and expenses payable under the
technical management agreements, the management and administration
agreements and the administrative services agreement;
- the anticipated taxation of KNOT
Offshore Partners and distributions to KNOT Offshore Partners’
unitholders;
- estimated future maintenance and
replacement capital expenditures;
- KNOT Offshore Partners’ ability to
retain key employees;
- customers’ increasing emphasis on
environmental and safety concerns;
- potential liability from any pending or
future litigation;
- potential disruption of shipping routes
due to accidents, political events, piracy or acts by
terrorists;
- future sales of KNOT Offshore Partners’
securities in the public market;
- KNOT Offshore Partners’ business
strategy and other plans and objectives for future operations;
and
- other factors listed from time to time
in the reports and other documents that KNOT Offshore Partners
files with the U.S Securities and Exchange Commission, including
its Annual Report on Form 20-F for the year ended December 31,
2015.
All forward-looking statements included in this release are made
only as of the date of this release on. New factors emerge from
time to time, and it is not possible for KNOT Offshore Partners to
predict all of these factors. Further, KNOT Offshore Partners
cannot assess the impact of each such factor on its business or the
extent to which any factor, or combination of factors, may cause
actual results to be materially different from those contained in
any forward-looking statement. KNOT Offshore Partners does not
intend to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in KNOT Offshore Partners’ expectations with respect thereto or any
change in events, conditions or circumstances on which any such
statement is based.
1 Adjusted EBITDA and distributable cash flow are non-GAAP
financial measures used by investors to measure the performance of
master limited partnerships. Please see Appendix A for definitions
of Adjusted EBITDA and distributable cash flow and a reconciliation
to net income, the most directly comparable GAAP financial
measure.
2 Distribution coverage ratio is equal to distributable cash
flow divided by distributions declared for the period
presented.
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Knot Offshore Partners LPJohn CostainT: +44 7496
170 620
KNOT Offshore Partners (NYSE:KNOP)
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KNOT Offshore Partners (NYSE:KNOP)
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From May 2023 to May 2024