KNOT Offshore Partners LP (NYSE:KNOP) Q1 2022 Earnings Conference Call May 12, 2022 11:00 AM ET

Company Participants

Gary Chapman - Chief Executive Officer

Conference Call Participants

Robert Silvera - R.E. Silvera & Associates

Liam Burke - B. Riley

Climent Molins - Value Investor's Edge

Operator

Hello, and welcome to today's KNOT First Quarter 2022 Earnings Results Conference Call. My name is Jordan, and I'll be coordinating your call today. [Operator Instructions]

I'm now going to hand over to Gary Chapman, CEO to begin. Gary, please go ahead.

Gary Chapman

Thank you and welcome everybody to our 2022 first quarter earnings call. The earnings release and this presentation are already available on our website at knotoffshorepartners.com.

Slide 2, as always, provides an important notice about the nature of our presentation today, and in particular that we include forward-looking statements made in good faith, but which contain risks and uncertainties, such that actual results may be materially different. The partnership does not have or undertake a duty to update any such forward-looking statements, and for further information, you may wish to read our annual and quarterly SEC filings.

Please also be aware that our presentation includes certain non-US GAAP measures of distributable cash flow and adjusted EBITDA, although our earnings release does include the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

On to slide 3, highlights of the first quarter and subsequent. We announced a further cash distribution of $0.52 for the 27th consecutive time at this level under our 1099 structure, which was the 36th consecutive distribution made since the partnership first listed in 2013, and indeed this should be received by our unitholders today, in fact.

We maintained very high scheduled fleet utilization during the first quarter of 99.7% and 92.8% taking into account the scheduled dry docking of the Tordis Knutsen, Anna Knutsen and Vigdis Knutsen. We continue to make good progress in agreeing both interim and longer-term employment contracts for a number of our vessels coming into the charter market.

The Tordis Knutsen commenced on new time charter to Petrobras in February 2022 after successfully completing their drydock. We have a new two-year time charter for the Anna Knutsen with TotalEnergies, which commenced immediately after the vessel returned to Brazil, following successful completion of the drydock. TotalEnergies had an option to take only a one-year fixed charter on the Anna Knutsen, but instead, chose to take two years fixed.