KNOT Offshore Partners LP (NYSE:KNOP) Q2 2022 Earnings Conference Call August 25, 2022 11:00 AM ET
Company Participants
Gary Chapman - Chief Executive Officer
Conference Call Participants
Richard Diamond - Castlewood Capital
Liam Burke - B. Riley Securities
Robert Silvera - R.E. Silvera & Associates
Operator
Hello and welcome to today's KNOT Offshore Partners Second Quarter 2022 Earnings Results Conference Call. My name is Bailey, and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for the questions-and-answers at the end. [Operator Instructions]
I would now like to pass the conference over to our host, Gary Chapman, Chief Executive Officer with KNOT Offshore Partners. Gary, please go ahead.
Gary Chapman
Thank you, Bailey. And welcome everybody to our second quarter 2022 Earnings Call. The earnings release and this presentation are also available on our website at knotoffshorepartners.com if you want to view them. Slide two reminds about the nature of today's presentation. In particular, with regards to 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 three of the presentation, highlights of the second quarter and subsequent. We announced a cash distribution of $0.52 for the quarter for the 28th consecutive time at this level under our 1099 structure, which was the 37th consecutive distribution made since the partnership first listed in 2013. We maintained 100% scheduled fleet utilization during the second quarter, 90.5% taking into account the scheduled drydockings of the Lena, Anna, Vigdis and Windsor Knutsen vessels. We were able to conclude a further sale and leaseback agreement with respect to the total Knutsen, generating net proceeds of approximately $39 million after fees and expenses and we use the majority of these funds to purchase the Synnove Knutsen from our sponsor Knutsen MYK or as we refer KNOT.
The total purchase price of the Synnove Knutsen was $119 million, including taking on the debt associated with the vessel. We've been able to conclude, or nearly conclude a number of charters this quarter, including that in return for accepting an early redelivery of the vessel under the existing contract, we closed a new three year deal with Eni for the Ingrid Knutsen to commence in January 2024 for a period of three years and with three further years of charters options. The Vigdis Knutsen took over the time charter contract for PetroChina and PetroChina also exercise their first option for an additional period of 12 months, taking the vessels employment to at least September 2023.