KNOT Offshore Partners LP (NYSE:KNOP) Q3 2022 Results Conference Call November 30, 2022 10:00 AM ET

Company Participants

Gary Chapman - Chief Executive Officer and CFO

Conference Call Participants

Liam Burke - B. Riley

Richard Diamond - Castlewood Capital

Jim Altschul - Aviation Advisory Service

Rob Silvera - R.E. Silvera & Associates Marine Surveyors

Operator

Hello, everyone. And welcome to the KNOT Third Quarter 2022 Earnings Results Conference Call. My name is Charlie, and I'll be coordinating the call today [Operator Instructions].

I would now hand over to your host, Gary Chapman, Chief Executive Officer and CFO to begin. Gary, please go ahead.

Gary Chapman

Thank you, Charlie. Thank you, and welcome everybody to our third quarter 2022 earnings call. The earnings release and this presentation are also available on our Web site at knotoffshorepartners.com if you want to view them. Straight on Slide 2 which concerns the nature of today's presentation. In particular, the inclusion of forward-looking statements, which are made in good faith, but which contain risks and uncertainties, meaning, that actual results may be materially different. The Partnership does not have or undertake a duty to update such forward-looking statements. And for further information, please consult our annual and quarterly SEC filings. Today's presentation also includes certain non-US GAAP measures and our earnings release includes a reconciliation of these to the most directly comparable GAAP measures.

On to Slide 3, highlights of the third quarter and subsequent. We announced a cash distribution of $0.52 for the quarter for the 29th consecutive time at this level under our 1099 structure, and which was the 38th consecutive distribution made since the Partnership first listed. We run at 99.7% utilization for scheduled operations during the second quarter and 92.8% taking into account the scheduled drydockings of the Lena and Windsor Knutsen vessels. We completed the acquisition of the Synnøve Knutsen on July 1, 2022 to bring our fleet up to 18 vessels and at the same time adding a block of forward revenue and charter coverage as a result. And all five of our vessel drydocking scheduled in 2022 have been completed. In terms of charter developments, Knutsen NYK have taken each of their one month options on the Bodil Knutsen to date and have options to keep the vessel until June 2023. We signed the time charter for the Windsor Knutsen with Shell to commence in or around January 2023 for a one year fixed period, plus a one year option. The Lena Knutsen commenced on its charter with TotalEnergies for six months, plus a further six month option.