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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
------------------------------- ----------------------
September September September September
30, June 30, 30, 30, 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 September September
30, June 30, 30, 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
At September At December
(U.S. Dollars in thousands) 30, 2024 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
(MORE TO FOLLOW) Dow Jones Newswires
December 04, 2024 16:15 ET (21:15 GMT)
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