Financial Performance - Generated total revenues of 74.4 million in Q2 2024, driven by higher charter and bareboat revenues[10] - Adjusted EBITDA for Q3 2024 was 3.8 million compared to a net loss of 76.292 million, compared to 3,773,000 compared to a profit of 9,185 thousand, compared to a loss of 138,025,000, slightly down from 947.3 million[12] - Vessel operating expenses increased to 23.164 million in Q3 2023, reflecting a rise of 27.1% year-over-year[27] - Depreciation expenses remained stable at approximately 27,472,000 in 2023[39] Liquidity and Capital Structure - As of September 30, 2024, the Partnership had 67.2 million in cash and cash equivalents[11] - Cash and cash equivalents increased from 67,225 thousand at the end, reflecting a growth of approximately 3.8%[36] - Long-term debt decreased from 766,895 thousand, a reduction of approximately 10.6%[33] - Current liabilities increased significantly from 209,889 thousand, marking an increase of approximately 64.4%[33] - The total partners' capital decreased from 506,178 thousand at September 30, 2024, a decline of approximately 3.2%[34] Market Outlook - The outlook for the offshore oil market in Brazil is improving, with robust demand and increasing charter rates driven by Petrobras' high production levels[7] - The medium and long-term outlook for the shuttle tanker market remains favorable, supported by committed capital from industry participants and supply-demand factors[22] - Shuttle tanker demand in the North Sea has been subdued due to COVID-19-related project delays, with expectations for improvement as new oil production projects come online[21] Charter Contracts and Fleet Management - The Partnership has secured just under 96% of charter coverage for the whole of 2024, indicating strong demand in the market[6] - The charters for Tordis Knutsen and Lena Knutsen were extended by one year, with options to extend for up to three additional years, now running until 2028[4] - The Partnership has entered into multiple long-term charter contracts with Petrobras, including a new fifteen-year contract for a vessel to be delivered in late 2025 and three ten-year contracts for vessels expected to be delivered between 2026 and 2027[25] - The Partnership plans to build liquidity and maintain long-term visibility from its charter contracts to capitalize on an improving shuttle tanker market[22] Impairment and Expenses - The company recorded an impairment of 49,649 thousand for the same period in 2023, indicating a significant reduction in impairment losses[36] - Interest expense decreased to 18,493,000 in the same period of 2023[39] - Impairment charges for the nine months ended September 30, 2024, were 49,649,000 in the same period of 2023[39] Future Strategies - The company anticipates growth strategies focused on expanding its market presence and enhancing operational efficiencies[43] - KNOT Offshore Partners is exploring opportunities for long-term charters of five years or more to stabilize revenue streams[43] - Future capital expenditures are planned to enhance fleet capabilities and operational capacity[44] - KNOT Offshore Partners is committed to maintaining long-term relationships with major users of shuttle tonnage to ensure consistent demand[44]
KNOT Offshore Partners LP(KNOP) - 2024 Q3 - Quarterly Report