We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
KNOT Offshore Partners LP | NYSE:KNOP | NYSE | Trust |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 5.41 | 5.46 | 5.35 | 5.46 | 40,892 | 01:00:00 |
Highlights
For the three months ended June 30, 2016, KNOT Offshore Partners LP (“KNOT Offshore Partners” or the “Partnership”):
In addition:
Subsequent events:
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 $ 405,545Outlook
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:
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 472UNAUDITED 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 $ 1,219,902UNAUDITED 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 $ 71,403APPENDIX 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 EndedJune 30,2016(unaudited)
Three Months EndedMarch 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:
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160810005966/en/
Knot Offshore Partners LPJohn CostainT: +44 7496 170 620
1 Year KNOT Offshore Partners Chart |
1 Month KNOT Offshore Partners Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions