KNOT Offshore Partners LP (NYSE:KNOP) Q2 2023 Earnings Conference Call August 31, 2023 9:30 AM ET
Company Participants
Gary Chapman - Chief Executive Officer and Chief Financial Officer
Conference Call Participants
Liam Burke - B. Riley
Poe Fratt - Alliance Global Partners
Robert Silvera - R.E. Silvera & Associates
Jim Altschul - Aviation Advisory Service
Operator
Hello and welcome to today’s KNOT Offshore Partners’ Second Quarter 2023 Earnings Results Conference Call. My name is Jordan and I’ll be coordinating your call today. [Operator Instructions] I am now going to hand over to Gary Chapman, CEO and CFO, to begin. Gary, please go ahead.
Gary Chapman
Thank you and welcome everybody to our second quarter 2023 earnings call. The earnings release and this presentation are available on our website at knotoffshorepartners.com.
Slide 2 of the presentation gives guidance on the inclusion of forward-looking statements in today’s presentation, that are made in good faith and reflect management’s current views, known and unknown risks and are based on assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied forward-looking statements and the partnership does not have or undertake a duty to update any such forward-looking statements made as of the date of this presentation. And for further information, please consult our annual and quarterly SEC filings. Today’s presentation also includes certain non-U.S. GAAP measures and our earnings release includes a reconciliation of these to the most directly comparable GAAP measures.
On Slides 3, 4 and 5 are highlights from the second quarter of 2023 and some subsequent developments. Beginning on Slide 3, we announced our 41st consecutive quarterly cash distribution since our IPO in respect to the second quarter and which was paid in August 2023 under our 1099 structure. We had a strong operational quarter as our fleet operated with 99.3% utilization for scheduled operations and 95.5% utilization taking into account the scheduled dry dockings of the Brasil Knutsen and the Hilda Knutsen.
We successfully closed our new 5-year $240 million senior secured term loan facility in June, which was scheduled to mature in September 2023, secured by the 6 vessels listed on the slide. And in August, we also successfully closed the refinancing of our first $25 million revolving credit facility with the facility being rolled until August 2025 on similar terms. We are discussing with the lender under our second $25 million revolving credit facility, which will mature in November 2023. And we also expect this will be successfully refinanced on acceptable and similar terms prior to its maturity.