KNOT Offshore Partners LP (NYSE:KNOP) Q2 2024 Results Conference Call September 4, 2024 9:30 AM ET

Company Participants

Derek Lowe - CEO and CFO

Conference Call Participants

Liam Burke - B. Riley
Poe Fratt - AGP
Jim Altschul - Aviation Advisory Service

Operator

Good morning, everyone. Welcome to KNOP Second Quarter 2024 Earnings Call. My name is Kiki and I will be your conference operator today [Operator Instructions].

I will now hand you over to your host, Derek Lowe, Chief Executive Officer and Chief Financial Officer. Derek, please go ahead.

Derek Lowe

Thank you, Kiki. And good morning, ladies and gentlemen. My name is Derek Lowe, and I'm the Chief Executive and Chief Financial Officer of KNOT Offshore Partners. Welcome to the partnership's earnings call for the second quarter of 2024. Our website is knotoffshorepartners.com, and you can find the earnings release there along with this presentation. On Slide 2, you will find guidance on the inclusion of forward-looking statements in today's presentation. These 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 in 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. For further information, please consult our SEC filings, especially in relation to our annual and quarterly results. 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 Slide 3, we have the financial and operational headlines for Q2. Revenues were $74.4 million, operating income $1.3 million, and there was a net loss of $12.9 million. However, these figures notably include the effect of vessel impairments on our two Panamax vessels, the Dans. And if those are excluded, then operating income would be $17.7 million and net income $3.5 million. Adjusted EBITDA was $45.5 million. We closed Q2 with $66 million in available liquidity, made up of $56 million in cash and cash equivalents plus $10 million in undrawn capacity on our credit facilities. We operated with 98.8% utilization and the vessel time available for scheduled operations was not impacted by any planned drydocking. Following the end of Q2, we declared a cash distribution of $0.026 per common unit, which was paid in early August.