The following is a summary of the KNOT Offshore Partners (KNOP) Q1 2024 Earnings Call Transcript:
Financial Performance:
KNOT Offshore Partners reported Q1 2024 revenues of $76.6 million, operating income of $19.7 million and net income of $7.4 million, with adjusted EBITDA of $47.5 million.
The company generated good free cash flow in Q1, even with several uncontracted vessels.
The company's liquidity at the close of Q1 stands at $55 million, comprised of $50 million in cash and cash equivalents, and $5 million in undrawn capacity on credit facilities.
There is a priority focus on debt repayment with $91 million scheduled for payment over the next 12 months.
Business Progress:
In Brazil, Vigdis Knutsen was chartered to Shell for three years from March and Anna Knutsen's charter was extended to April 2026.
Knutsen vessels 'Ingrid' and 'Torill' will start chartering with Eni from Q4 2024.
They continue to market vessels 'Dan Cisne', 'Dan Sabia', and 'Hilda Knutsen' while seeking third-party employment for 'Ingrid Knutsen' and 'Torill Knutsen' until their charters begin in Q4.
The vessels 'Hilda' and 'Dan Cisne' are being fitted to meet the demands of the current marketplace, and 'Dan Cisne' is being upgraded for harsh weather conditions to increase its marketability.
The company is working to improve the visibility of their contracting schedule and anticipates further new build orders due to increased production.
Despite being not of the ideal size, 'Dan Sabia' continues to be marketed in Brazil due to steady demand in the region.
More details: KNOT Offshore IR
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