Q1 2024 KNOT Offshore Partners LP Earnings Call
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Carla: Welcome to the KMOP first quarter 2024 earnings call. My name is Carla, and I will be coordinating your call today. During the presentation, you can register to ask a question by pressing star followed by one on your telephone keypad. And if you change your mind, press star followed by two. I would now like to hand you over to Derek Lowe to begin. Derek, please go ahead.
Carla: Welcome to D. K N O P first quarter 'twenty 'twenty four earnings call. My name is Carla and automobile coordinate no call today. During the presentation. You can register to ask a question by pressing star followed by one on your telephone keypad and if you change your mind. Please press star followed by cheap I would now like to hand, you over.
Derek: Or do you directly to begin Derek Please go ahead.
Derek Lowe: Thank you and good morning, ladies and gentlemen. My name is Derek Lowe, and I'm the Chief Executive Officer and Chief Financial Officer of Knot Offshore Partners. Welcome to the Partnerships Earnings Call for the first quarter of 2024. Our website is KnotsOffshorePartners.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.
Derek Lowe: Thank you and good morning, ladies and gentlemen, my name is Derek Lowe and I'm, the Chief Executive and Chief Financial Officer.
Speaker Change: Offshore partners welcome to the Partnership's earnings call for the first quarter of 2024.
Speaker Change: Our website is cut up social partners Dot Com and you can find the earnings release that along with this presentation.
Derek Lowe: 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 Q1. Revenues were $76.6 million, operating income $19.7 million, net income was $7.4 million, and adjusted EBITDA was $47.5.
Speaker Change: On slide two you will find guidance on the inclusion of forward looking statements in today's presentation.
Derek Lowe: We closed Q1 with $55 million in available liquidity, made up of $50 million in cash and cash equivalents plus £5 million in undrawn capacity on our credit card. We operated with 97.6% utilisation, and the vessel time available for scheduled operations was not impacted by any planned dry docking. Following the end of Q1, we declared a cash distribution of US$0.02 per unit, which was paid in early May.
Speaker Change: Amazing 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.
Derek Lowe: On slide four, we have the headlines of the contractual and operational developments since our last results call, which was on February the 27th, in our major market, Brazil. Vignes Cunningham was delivered to Shell in March for a three-year time charter. Anna Knutson sought exercise of an option by Total Energies, extending the current charges to April 2026, and by the time of the last results call, Dan Sabia's Chancellorship to TransPetro had been extended to early June this year. In the North Sea, Hilda Knutson, Toral Knutson, and Bodal Knutson have continued to operate under timed charters to our sponsor, Knutson MYK.
Speaker Change: Results may differ materially from those expressed or implied in forward looking statements.
Speaker Change: Obviously, it does not have or undertake a juicy to update any such forward looking statements made as of the types of this presentation.
Speaker Change: For further information please.
Speaker Change: Our SEC filings, especially in relation to our annual and quarterly results.
Speaker Change: Today's presentation also includes certain non U S. GAAP measures and our earnings release includes a reconciliation of these to the most directly comparable GAAP measures.
Speaker Change: On slide three we have the financial and operational headlines for Q1.
Speaker Change: Revenues were $76 $6 million.
Speaker Change: Income 19, seven net income was $7 4 million.
Speaker Change: And adjusted EBITDA of $47 5 million.
Speaker Change: Closed Q1 with $55 million in available liquidity made up of $50 million in cash and cash equivalents plus $5 million in undrawn capacity on our credit facilities.
Speaker Change: We operated with 97, six utilization and the <unk>.
Speaker Change: Vessel time available for scheduled operations was not impacted by any plans drydocking.
Speaker Change: Following the end of Q1, we declared the cash distribution of $2 six U S cents per common unit, which was paid in early may.
Speaker Change: On slide four we have the headlines of the contractual on operational developments since our last results call, which was on February the 27th.
Speaker Change: In all major markets Brazil.
Speaker Change: <unk> was delivered to shell in March for three year time charter.
Speaker Change: Analysts and so exercise of an option by total energies extending the couch offs until April 2026.
Speaker Change: And by the time at the last results call down Savviest Chaucer to Trans petrol had been extended to early June this year.
Speaker Change: In the North Sea Hilda Knutsen total collapse in federal credits and have continued to operate under time charters to our sponsor <unk>.
Derek Lowe: For Bodal Knudsen, this Charter lasted, as planned, until delivery to Equinor at the end of March on a Charter of 2 years fixed plus 2 years optional. For Hilda Knutsen and Toral Knutsen, the Charter is for rolling one month terms up to January 2025. Ingrid Knudsen was redelivered by Altera at the end of March as anticipated and has since gone on to time charter with Knudsen MYK.
Speaker Change: So pedro clips and discharged lawsuits that's plans until delivery to act at all at the end of March on the charter two years fixed plus two options.
Speaker Change: The Hilda Knutsen and total collapse the charters rolling one lakh tonnes up to January 2025.
Speaker Change: Ingrid.
Speaker Change: We delivered by Alterra at the end of March as anticipated.
Speaker Change: <unk> got all of the time charter with collecting them like high both Ingrid knutsen until well connects and will commence charters with Eni in Q4 this year.
Derek Lowe: Both Ingrid Knudsen and Toral Knudsen will commence charters with E&I in Q4 this year. For Ingrid Knudsen, this was a deferral to October from a previously contracted April delivery, but this deferral is on terms that are no less favourable to us than applied previously.
Speaker Change: For English because this was a deferral to October from our previously contracted April delivery.
Speaker Change: Deferral is on times that are no less favorable to us than appliance previously.
Derek Lowe: That charter is for two years fixed, plus two options each of one year. For Total Connection, the new time transfer with E&I is for three years fixed, plus three options each of one year. In the meantime, Tom Connetson is undergoing repairs to a broken generator rotor, which has limited the range of client facilities which this vessel is able to serve.
Speaker Change: With the two guys fixed plus two options each of one year.
Speaker Change: The total collapse in the new time charter with Eni is three years fix plus three options each of one year.
Speaker Change: In the meantime, telco lesson is undergoing repairs to a broken generator Rosa, which has limited the range of cloud facilities, which this vessel is able to serve you.
Derek Lowe: We expect the repair to be completed later in Q2 or into Q3, and both the repair costs and some loss of hire are expected to be covered by insurance, subject to the relevant policy terms. Since we received re-delivery of Dam Cissna in December 2023, we have deployed her on short-term conventional tanker work while also assessing the upgrades required for compatibility with shuttle tanker work in the North Sea. Those upgrades are due to be carried out in the coming weeks. Dan Sabia is due for a redelivery to us in June, which is the extended expiry date of her transfer to TransPetro.
Speaker Change: We expect repairs to be completed later in Q2 or into Q3 and both of our back office and some loss of all that I would expect it to be covered by insurance subject to the relevant policy times.
Speaker Change: After we received re delivery of <unk> in December 2023, we have deployed around short term conventional tanker work, while also assessing the upgrades required for capacity obviously, the shuttle tanker work in the North Sea.
Speaker Change: Upgrades it used to be carried out in the coming weeks.
Speaker Change: Dan Sabia is G for REIT delivered to us in June which is the extended expiry dates of Chaucer to trans Patrick the.
Derek Lowe: The continuing area of focus for our contracting team is on Dam Cisner, Dam Sarbia, and Hilderken. For near-term deployment, focus also remains on Ingrid Knutsen and Toral Knutsen until each of them is delivered to E&I in Q4 this year. On slide 5, our outlook is positive on both industry dynamics and the partners' positioning to participate fruitfully in our market. Significant growth is anticipated in production in fields which rely on service by shuttle tanks.
Speaker Change: The continuing area of focus for our contracting team is on Cessna Salvia and Hilda Knutsen.
Speaker Change: So near term deployment focus always also remains Ingrid knutsen, the tokenism until each of them is delivered to Eni in Q4 this year.
Speaker Change: On slide five our outlook remains positive on both industry dynamics on the partnership's positioning deposits quite frequently in our markets.
Speaker Change: Significant growth as anticipated in production and sales, which will allow us to satisfy shuttle tankers we.
Derek Lowe: We see reported orders from earlier this year of around six vessels as an endorsement of confidence in the sector. Three of these vessels have been ordered by our sponsor for delivery in 2026 and 2027. Each of these sponsor vessels has a 10 year fixed contract with Petrobras, along with a client option to extend by a further 5 years. We would expect to see further new build orders placed in order to service the large new production volumes coming online in the years ahead. A measured amount of new shuttle tanker ordering is imperative, but it should not be understood as some sort of negative development for the sector. A material shortage of shuttle tanker capacity remains projected in the coming years.
Speaker Change: We see reported orders from earlier this year of around six vessels as an endorsement of our confidence in the sector.
Speaker Change: Three of these vessels have been ordered by a sponsor to delivery over 2026 and 2027.
Speaker Change: Each of these pumps vessels at a 10 year fixed contract with Petrobras along with the client option to extend by a further five years.
Speaker Change: We would expect to see further new build orders placed in order to service the large new production volumes coming online in the years ahead immersion amounts of new shuttle tanker ordering is imperative and should not be understood as some sort of a negative development for the sector.
Speaker Change: Material shortage of shuttle tanker capacity remains projected in the coming years.
Derek Lowe: We also remain mindful of near-sand market conditions, where we are particularly focused on marketing Dan Cissna, Dan Salby, and Hilda Curtin, as well as seeking third-party employment for Ingrid Knutson and Toral Knutson until commencement in Q4 of their next long-term charter. In the meantime, the partnership remains financially resilient, with a strong contracted revenue position of $683 million at the end of Q1 on fixed contracts, which averaged two years in duration.
Speaker Change: We also remain mindful of NASA market conditions, while we are particularly focused on marketing marketing with ancestry done, albeit on Hilda knutsen as well as seeking third party employment of Ingrid Calypso Calypso.
Speaker Change: Until the commencement in Q4 that next long term charters.
Speaker Change: In the meantime, the Polish it remains financially resilient with a strong contracted revenue position of $683 million at the end of Q1 on fixed contracts, which average two years in duration charters options additional to this and aperture fab two years.
Derek Lowe: Charterless options are additional to this and average a further two years. Our pattern of cash generation and liquidity balance is sufficient for our operations and the significant pay debt rates for our debt, and we have demonstrated the strength of our relationships with lending banks through several refinancings completed over the last year. Finally, the average age of our vessels, at 9.9 years, places us well when compared with the useful life model, at 23 years.
Derek Lowe: On slide 6, you can see the consistency of revenues and operating income when comparing between quarters and also between 12 month periods. Slide 7 similarly reflects the consistency of our adjusted EBITDA, and you can find the definition of this non-GAAP measure in the appendix. On slide 8, the most notable change in the balance sheet over the first quarter has come from re-announcing the loan secured by Hilderkin at the end of the year, the balance of which has moved from current liabilities into long-term debt. The overall change in the partnership's liabilities has been a reduction by $42 million, which is reflective of our debt repayment schedule.
Speaker Change: El Paso is cash generation and liquidity balance is sufficient for our operations and the significant pay debt rates for that.
Speaker Change: I mean, you've demonstrated the strength of our relationships with epic backs by several refinancings completed over the last year.
Speaker Change: Finally, the average age of our vessels at nine nine years places us well when compared to the useful life Modelled at 23 years.
Speaker Change: On to slide six you can see the consistency of revenues and operating income when comparing between quarters that also between 12 month periods.
Speaker Change: Slide seven similarly reflects the consistency of our adjusted EBITDA and you can find the definitions of these non-GAAP measure in the appendix.
Speaker Change: On slide eight the most notable change in the balance sheets over the first quarter has come from refinancing of the loan secured by Hilda Knutsen the.
Speaker Change: The balance of which is maybe from current liabilities into long term debt.
Speaker Change: Overall change of the partnership's liabilities has been a reduction by $42 million, which is reflective of our debt repayment schedule.
Derek Lowe: On slide 9, we have expanded on the terms of the Partnership's debt facilities to provide added color around the dynamics of debt repayment. The highlighted column shows how the outstanding balances of each facility have been reducing because of the repayments we've been making in line with scheduled repayments. The current instalments are the amounts of capital repayments due over the next year which do not include interest, and the balloon payments are the final amounts of principal which will be due on maturity. Of note, $91 million is due to be paid on these debt facilities over the 12 months following 31st March.
Speaker Change: On slide nine we have expanded on the terms of the partnerships debt facilities to provide added color around the dynamics of debt repayment.
Speaker Change: Highlighted column shows how the outstanding balances of each facility being reducing because of the repayments we've been making in line that scheduled repayment terms.
The current installments are the amounts of capital repayments due over the next year, which do not include interest in the balloon payments of the final amounts of principal which will be due on the maturity dates.
Speaker Change: Of note $91 million is due to be paid on these debt facilities over the 12 months following 31st of March.
Derek Lowe: Completion of the Hilderloan refinancing is due imminently, following which no further balloon repayments or refinancings are due within that 12-month period. Our typical pattern is for our vessels to provide security for our deck facilities, and that applies to 16 out of 18 vessels. At present, the exceptions are that Dan Cissna and Dan Sabia are free of debt, and we do not have plans to incur additional borrowings secured by these vessels until we have better visibility on their future employment.
Speaker Change: Completion of the Hilton and refinancing is due imminently following which no further balloon repayments or refinancings LG within that 12 month periods.
Speaker Change: Our typical pattern is for all vessels to provide security for our debt facilities and our supply for 16 out of 18 vessels.
Speaker Change: The present, the exceptions of the <unk> system that doesn't solve the it free of debt and we do not have plans to incur additional borrowing secured by these vessels until we have better visibility on their future employment.
Derek Lowe: $880 million out of $925 million in debt facilities are secured by vessels, while the two revolving credit facilities totalling $50 million of capacity are on sale. Slide 10 shows the contracted pipeline in chart format reflecting the developments I set out earlier. Similarly, slide 11 highlights the focus of our commercial efforts on adding near-term contracts specifically for Downs Disney, Downs Arby, and Hilderkin and, in the near term, also for Ingrid Colletson and Toral Colletson.
Speaker Change: $880 million as of 925 billion in debt facilities are secured by vessels.
Speaker Change: The two revolving credit facilities totaling $50 million of capacity are unsecured.
Slide 10 shows the contracted pipeline chart format, reflecting the development so I set out earlier.
Speaker Change: Similarly, slide 11 highlights the focus of our commercial efforts are not in the near term contracts, particularly for Cessna and Sofia and Hilda Knutsen.
Speaker Change: And in the near time, all safer and grid connection Antero collection.
Derek Lowe: On slide 12, we see our sponsors' inventory of vessels which are eligible for purchase by the partnership. This applies to any vessel owned by or on order for our sponsor, where the vessel has a firm contract period of at least five years in length. At present, five existing vessels and five under construction fall into this category. There is no assurance that any further acquisitions will be made by the partnership, and any transaction will be subject to the board approval of both parties, which includes the Partnerships, and Independent Directors.
Speaker Change: On slide 12, we say our sponsors inventory vessels, which are eligible for potash are purchased by the partnership.
Speaker Change: This applies to any vessel owned by all order for sponsor by the vessel has a firm contract periods at least five years in length.
Speaker Change: The present five existing vessels and five under construction fall into this category.
There is no assurance that any further acquisitions will be made by the partnership.
Speaker Change: Any transaction would be subject to the board's approval of both parties, which includes the partnership's independent complex Committee.
Derek Lowe: As we have said, our top priorities remain securing additional contract coverage for our existing fleet and fostering our network of developers. On slides 13 to 15, we provided some useful illustrations of the strong demand dynamics in the Brazilian market, as published by Petrobras. We encourage you to review Petrobras' materials directly. The primary takeaway from each of these slides is consistency.
Speaker Change: As we've said our top priorities remain securing additional contract coverage for our existing fleet and fostering our liquidity position.
Speaker Change: On slides 13 to 15, we provided some useful illustration of the strong demand dynamics in the Brazilian market as published by Petrobras.
Speaker Change: Encourage you to review Petrobras is materials directly.
Speaker Change: The primary takeaway from each of these slides, it's consistent it's very significant committed demand growth coming that Brazilian market in the form of <unk> that will require a regular service from shuttle tankers.
Derek Lowe: It is very significant committed demand growth coming to the Brazilian market in the form of new FVSOs that will require regular service from shuttle tanks. We believe that reports earlier this year of up to six vessel construction contracts are an endorsement of the strong anticipated market conditions in the medium and longer term. As I mentioned earlier, three of these recent new build contracts are for our sponsor, Kirtz & MIK, and they're due for delivery in 2026 and 2025.
Speaker Change: We believe that reports earlier this year of up to six vessel construction contracts.
Speaker Change: Endorsement of the strong anticipated market conditions in the medium and longer term.
Speaker Change: As I mentioned earlier three of these recent newbuild contracts offer a sponsor cutting them like.
Speaker Change: And then G for delivery over 2026 and 2027.
Derek Lowe: We would expect to see further new build orders placed in order to service the large new production volumes coming online in the years ahead, and a material shortage of shuttle tanker capacity remains projected in the coming years. On slide 16, we provide information relevant to our US unit holders, in particular those seeking a Form 1099. Those holding units via their custodians or brokers should approach those parties directly. Those with directly registered holdings should contact our transfer agent, Equinity Trust Company, whose details are shown there.
Speaker Change: Would expect to see further newbuild orders placed in order to service the larger production volumes coming online in the years ahead.
Speaker Change: The material shortage of shuttle tanker capacity remains projected in the coming years.
Speaker Change: On slide 16, we provide information relevant to our U S unit holders and particularly those in particular that was seeking a form 10 99.
Speaker Change: I was holding units buyback or stadiums or brokers should approach those parties directly.
Speaker Change: Those with directly registered holdings should contact to our transfer agent at <unk> Trust company as details of Shanghai.
Derek Lowe: On slide 17, we include some reminders of the strong fundamentals of our business, in the market we serve, our assets, and Competitive Landscapes. Robust Contractual Footprint and Resilient Finance. I will finish with slide 18, recapping our financial and operational performance in Q1 2024 and the subsequent time, and our outlook for the remainder of 2024. We are glad to have delivered high and safe utilisation, which has generated consistent financial performance. We are pleased with the new contracts and extensions we have secured during the quarter and since, along with our ability to navigate our economic needs and periods of capital expenditure, and our continued commercial focus remains on filling up third party utilisation for 2024 while looking further forward to longer term charter visibility and liquidity generation. Thank you for listening, and with that, I'll hand the call back to the operator for any questions.
Speaker Change: On slide 17, we include some reminders that the strong fundamentals of our business in the market, we serve our assets competitive landscape.
Speaker Change: Robust contractual footprint and resilience finances.
Speaker Change: I will finish with slide 18, recapping, our financial and operational performance in Q1, 2024, and the subsequent time and our outlook for the remainder of 2024.
Speaker Change: We are glad to have delivered high and safety utilization, which have generated consistent financial performance.
Speaker Change: We are pleased with the new contracts and extensions we have secured during the quarter.
Along with our ability to navigate our refinancing needs in periodic capital expenditure.
Speaker Change: And our continued commercial focus remains on filling up third party utilization for 2024, while looking further forward to longer time charter visibility and liquidity generation.
Speaker Change: Thank you for listening and with that I'll hand back the call back to the operator for any questions.
Carla: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. And our first question comes from Liam Burke from B and Riley.
Speaker Change: Thank you.
Speaker Change: I would like to ask a question. Please press star followed.
Speaker Change: Followed by one on the telephone keypad, if you change your mind. Please press star followed by <unk>.
Speaker Change: With Brian asked a question please make sure your devices in niche locally.
Speaker Change: And our first question comes from Liam Burke from B.
Brian Lee.
Liam Dalton Burke: Thank you. Hi Derek, how are you today?
Speaker Change: Thank you Hi, Derik how are you today.
Derek Lowe: I'm good to talk to you.
Derik: <unk> okay.
Liam Dalton Burke: Thank you. Derek, could you give us a little more color on the macro side?
Thank you.
Derik: Eric could you give us a little more color on the macro side, specifically the activity in the North Sea.
Liam Dalton Burke: Specifically, the activity in the North Sea? I mean, it's pretty well known that the step-up investment in offshore Latin America is pretty high. But we're not hearing much about the North Sea.
Speaker Change: Pretty well known that the step up investment on offshore in Latin America, It's pretty high we're.
Speaker Change: We're not hearing much on the North sea.
Derek Lowe: Sure, well, the main developments we're looking forward to are... and the Penguins. FPSO is coming online with production either late this year or early next year, and we think there's going to be a significant increase in demand for the whole of the North Sea Shuttle fleet once those come along. The question, in the meantime, is at what stage do clients want to start entering into contracts in anticipation of that?
Speaker Change: Sure.
Eric: I mean, the main developments, we're looking to.
Yes.
Eric: The cashback.
Speaker Change: The penguins.
Speaker Change: <unk> is coming.
Speaker Change: Our largest production either late this year early next year, and we think that's going to be significant increase in demand for.
Speaker Change: The whole of the North Sea shuttle fleets.
Speaker Change: Once those come along.
Speaker Change: Question in the meantime is at what stage two clients want to start entering into contracts.
Speaker Change: In anticipation of that.
Liam Dalton Burke: So everybody's anticipating the actual projects coming to fruition. Is it... does it make sense to just keep the Hilden Toro busy until you can charter it? I mean, are they good candidates to be chartered into this market?
Speaker Change: So.
Speaker Change: So.
Speaker Change: Everybody is anticipating the actual projects coming to fruition.
Speaker Change: Is that.
Speaker Change: Makes sense to just keep the Hilda and <unk>.
Speaker Change: Z until you can charter it I mean, they are good candidates to be to be chartered into this market.
Derek Lowe: Soil has a charter from Q4 this year with E&I, and so. Okay. The tolls used in perhaps the COA pool until delivered into that contract, that's certainly a relevant point for us, but not after that.
Speaker Change: I hope so.
Speaker Change: It has a Charles from Q4 this year with Eni.
Speaker Change: So okay.
Speaker Change: Totals Houston.
Speaker Change: Perhaps the CRA pool.
Speaker Change: Until delivered impact contract certainly relevant point for us, but not after that.
Liam Dalton Burke: Okay, and on the Cessna and Sabia. They're in a good market, but just not the right size. Do you have any more alternatives rather than just running them into the traditional market?
Speaker Change: Okay.
Speaker Change: On the.
Speaker Change: Seth.
Speaker Change: <unk>.
Speaker Change:
Speaker Change: Yeah.
Speaker Change: They are in.
Speaker Change: Hey, good market, but just not the right size.
Speaker Change: You have any more alternatives rather than just running them into the traditional market.
Derek Lowe: Will the CISNA be aware that we have brought them over to the North Sea and are going to put the upgrades in place for North Sea work? Cessna is much better suited to the North Sea because of its size than the Brazilian market? So, she'll be exposed to the same dynamics in the North Sea as we have with the other vessels as well, which is why she's probably got probably the greatest amount of focus from the contracting team of all of our vessels. Sabia, we expect re-delivery in early June, and she's subject to all the normal and energetic marketing efforts, as you might imagine, given that she's not contracted after this. Great. Well, thank you, Derek.
Speaker Change: Hi.
Speaker Change: <unk>.
Speaker Change: I think the way we brought over to the North Sea.
Speaker Change: And.
Derek Lowe: Thank you.
Put the upgrades in place.
Speaker Change: The North sea work, because we think so.
Speaker Change: <unk> is much better suited to.
Speaker Change: North sea because of the size.
Speaker Change: Then the Brazilians to the Brazilian market.
Speaker Change: So she'll be exposed to the same dynamics in the North sea as we have with the other vessels as well.
Speaker Change: Which is why she's got probably the greatest amount of focus from the.
Speaker Change: The contracting team.
Speaker Change: All of our vessels.
Speaker Change: Im sorry.
Speaker Change: We expect re delivery.
Speaker Change: In early June.
Speaker Change: And she subject to all the normal.
Speaker Change: And adjusted marketing efforts as you might imagine.
Speaker Change: Given that she is not contracted after this.
Speaker Change: Great well, thank you Derek.
Speaker Change: Okay.
Charles Kennedy Fratt: Our next question comes from Poi Fratt from AGP.
Speaker Change: Our next question comes from Rod.
Speaker Change: Yes.
Rod: Hi, Derik.
Charles Kennedy Fratt: Okay. Thank you. Very well. Have a good one. Well, congrats on closing some of the holes.
Speaker Change: Got it.
Speaker Change: Very well how about you.
Speaker Change: Okay excellent.
Charles Kennedy Fratt: I'm especially surprised about Toral just because, as you just mentioned, the North Sea market could be very tight as you have the two FPSOs coming on later this year. Your market intelligence, what do you understand as far as the incremental demand that could be generated from those two FPSOs? And then, you know, is, is, there, it seems like there won't be any available capacity x the HILDA at that point in time, is that? Fair Statement.
Speaker Change: Well congrats on closing some of the holes.
I'm, especially surprised about the Toro just because.
Speaker Change: As you just mentioned the north sea market.
Speaker Change: It'd be very tight as you have the two <unk> coming on later this year.
Speaker Change: Can you hear me.
Speaker Change: Market intelligence.
Speaker Change: What do you understand as far as the incremental demand that could be generated from those two <unk>.
Speaker Change: And then.
Speaker Change: Is it.
Ed: It seems like there won't be any available capacity ex the Hilton at that point in time, it's Ed.
Speaker Change: That's fair statement.
Derek Lowe: Well, we think there's more than enough incremental demand to come through to cover the short... I guess the underemployed or underutilised vessels that we've got, potentially that others have as well. So the North Sea has always been a timing issue, and obviously, the longer it goes, the more frustrating it is, but it's a timing issue rather than anything worse than that. So the vessels that we would have available for that, because the Toral and Ingrit have both been contracted to E&I from Q4, they won't be in the question for that, but Hilda will, and Dan Cissner, who's been set up for the North Sea, will be as well.
Speaker Change: Well, we think thats more than enough.
Speaker Change: Incremental demand to come through.
Speaker Change: To cover the short.
Speaker Change: <unk>.
Speaker Change: I guess underemployed or underutilized vessels that we've got potentially.
Speaker Change: Potentially.
Speaker Change: At the top as well.
Speaker Change: North Sea has always been the timing issue and obviously the longer it goes the more frustrating.
Speaker Change: But it's a timing issue rather than anything Wes.
Speaker Change: So the vessels that we would have available for that because of the total and Ingrid suffice being contracted to Eni from Q4 that you won't be in the question.
Speaker Change: To that but Hilda well.
Dan system.
Speaker Change: She's been setup for the North sea will be as well.
Charles Kennedy Fratt: But if you would answer the question, what do you think the incremental demand of those two FBSOs could be?
Speaker Change: But if you could answer the question what do you think the incremental demand defense to Sps.
Speaker Change: Could could be.
Derek Lowe: I don't have a figure to hand, I'm afraid, but certainly more than enough to soak up the capacity that we've got.
Speaker Change: I don't have a figure to hand them a price, but certainly open it up to take up the capacity that we've got.
Charles Kennedy Fratt: Would it be fair to say that, you know, two to four for each FPSO or, you know, maybe two so that you have incremental demand developing into 2025 for four shuttle tankers in the North Sea?
Speaker Change: Yeah.
Speaker Change: Would it be fair to say that two to four <unk>.
Speaker Change: Sure.
Speaker Change: Maybe to say that you have incremental demand developing into 2025.
Speaker Change: For shuttle tankers and the North Sea.
Derek Lowe: Yeah, I'm afraid I don't have that on hand, so I could look at that and maybe we can discuss offline.
Speaker Change: Yes I'm.
Speaker Change: I'm afraid I don't have at hand, so I can look at that and maybe we can discuss offline.
Charles Kennedy Fratt: Okay. My understanding is that neither of those projects have lined up any capacity yet, is that what you understand?
Speaker Change: Okay.
Speaker Change: And.
Speaker Change: My understanding is that <unk>.
Neither of those projects lined up any capacities when do you understand.
Derek Lowe: As far as I know, they haven't lined up any yet.
Speaker Change: As far as I know they haven't yet.
Charles Kennedy Fratt: Okay, great. And then if you could just talk about the Dan Cizna. How much was the upgrade, the cost of the upgrade, and then will there be any downtime on that vessel in the second quarter?
Speaker Change: Okay, Great and then if you could just talk about the dance.
Speaker Change: Suzanne.
Suzanne: How much was the upgrade the cost of the upgrade and then will there be any downtime.
Suzanne: On on that vessel in that in the second quarter.
Derek Lowe: Well, she's currently not contracted, so downtime is perhaps a slightly moot point. We think it's around a month of both the work and the testing and C-trials and so on that will go on afterwards, maybe a month to six weeks. [inaudible] and the financial results we've produced, but we haven't produced a figure.
Speaker Change: Well she's currently not contracted so downtime.
Speaker Change: Perhaps a slightly moot point.
Speaker Change: We think it's around a month of boats to work.
Speaker Change: <unk> testing and sea trials and so on it will go it afterwards.
Speaker Change: Maybe I'm up to six weeks.
Speaker Change: Business actually is not on all contracts in any case during that time.
Speaker Change: We haven't published the cost, but it's not material.
Speaker Change: In the context of the financial results, we have produced but we haven't produced steady pickup.
Charles Kennedy Fratt: Okay, maybe you could describe the upgrade that was required.
Speaker Change: Okay, maybe you could describe the upgrades required.
Derek Lowe: Yes, it's some harsh weather facilities.
Speaker Change: Yes.
Speaker Change: Hospital facilities.
Speaker Change: Yeah.
Speaker Change: Okay.
Charles Kennedy Fratt: And then, do you think that Dan Sabia will stay in Brazil? It seems like there's... a strong enough demand there, and I guess, what's your sort of working assumption on Dan Sabby at this point in time?
Speaker Change: And then do you think the Dan Sabia will stay in Brazil. It seems like this.
Speaker Change: Enough demand there and.
Speaker Change: I guess, what's your what's your sort of working assumption on that Dan <unk>.
Speaker Change: Damn therapy at this point in time.
Derek Lowe: Well, we are very mindful that she's not the size that is ideal in Brazil, but there's enough demand that... Potentially, a client might want to take her in any case, so we continue to market in Brazil given that that's where she is.
Speaker Change: Well, we are very mindful that she got the size that is ideal in Brazil, but there is enough demand.
Speaker Change: Potentially a client might want to Tycho in any case, so we continue to market.
Speaker Change: In Brazil, given that especially as.
Speaker Change: Okay.
Charles Kennedy Fratt: Okay. When you look at the impact of the TORO on the first quarter, you know, the, what was it, broken motor rotor, can you just quantify the number of days? Will it just be that deductible, the higher deductible of 14 days that was in the first quarter?
Speaker Change: When you look at the impact of the 201, the first quarter.
Speaker Change: <unk>.
Speaker Change: What went to broken motor rotor can you just quantify the number of days.
Speaker Change: Will it just be that deductible, but what's the higher deductible of 14 days.
Speaker Change: In the first quarter.
Derek Lowe: Well, we certainly will be subject to that 14 days. It's not straightforward, because she's able to serve some client facilities but not others. So she's got some earnings, so it's not a classic loss of hire where she's completely out. And the calculation involved is actually relatively simple in those cases. But this is going to be more complicated.
Speaker Change: Well, we certainly will be subject to that 14 days.
Speaker Change: Deductible, it's not it's not straightforward because she's able to serve some clients associates, but not others.
Speaker Change: So she's got some some earnings so it's not it's not a classic lots of fire, where she is completely out.
Speaker Change: The calculation involved is actually relatively simple in those cases this is going to be more complicated.
Charles Kennedy Fratt: Got you. So, was she down at all in the first quarter? And then, if you could quantify any other idle days that you might have had in the first quarter to sort of get to that utilization number that you published? Joe.
Speaker Change: Got you.
Speaker Change: We'll see down at all in the first quarter and then if you could quantify any other idle days that you might have had in the first quarter to sort of get to that utilization number.
Derek Lowe: Sure. Something like a month in the first quarter. I need to check the exact figures, but by orders of magnitude, a month.
Speaker Change: Published Joe.
Speaker Change: Something like a month in the first quarter I'll need to check the exact figures but.
Speaker Change: Order of magnitude.
Charles Kennedy Fratt: And with that, was there any other downtime or idle days in the first quarter? It sounded like you worked essentially in the conventional tanker market. So that was more of a, you know, more on voyages, right? That's right.
Speaker Change: And with that was there any other downtime arrival dates in the first quarter.
Speaker Change: Sounded like you worked at Cynthia the conventional tanker market said that was more of a.
Speaker Change: Warren and voyages right.
Derek Lowe: That's right; she had downtime between those as well, but I think total employment for the CISNA is, this isn't a Q1 comment. Her work has continued since then, something like 80 days in the last five months.
Speaker Change: That's right. She had time time between between those as well, but I think total employment.
Speaker Change: For the system.
Speaker Change: <unk>.
Speaker Change: This isn't a Q1 comment because work.
Charles Kennedy Fratt: Sorry, would you clarify that? 80 days. She's worked 80 days in the last five months?
Has continued since then.
Speaker Change: Something like 80 days.
Speaker Change: In the last five months.
Speaker Change: Sorry would you clarify that 80 days she's worked to 80 days over the last five months.
Derek Lowe: Something like that. Okay, I gotcha. So 80 of the 100 and 150 if you look at it. Okay. It's not easy to fit into a quarterly result, understood. And when I combine, you know, your or just look at your off backs, it looks like the optics in the first quarter might have gone up just slightly on a daily basis. Is that accurate? And can you just comment on looking forward, you know, POS-X and GNA?
Something like that yes.
Speaker Change: Okay. Okay.
Speaker Change: Of the 100.
Speaker Change: <unk> 50, if you look at it Okay and then.
Speaker Change: Both trials are three.
Speaker Change: III different quarters of <unk>.
Speaker Change: Four months as well, so it's not easy to fit into our quarterly results.
Speaker Change: Understood.
Speaker Change: And when I combined.
Speaker Change: Just look at your Opex it looks like the Opex in the first quarter might have gone up just slightly on that.
Speaker Change: On a daily basis.
Speaker Change: Is that accurate and can you just comment on looking forward.
Speaker Change: Opex and G&A.
Charles Kennedy Fratt: Sure, I mean, G&A's been pretty stable, the main difference in OPEX is that you have Freud revenues to offset that as well, and that's a classification issue relating to I expect that for Dan Cissner because of the nature of her employment in that time.
Speaker Change: Sure I mean, <unk> been pretty stable.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Main difference in Opex is.
Speaker Change: Voyage expenses.
Speaker Change: Bear in mind also of course, we have revenues to offset that as well.
Speaker Change: That's the classification issue relating to.
Speaker Change: I expect that proton system because of the nature of our influence at that time.
Derek Lowe: Got you. So that was mainly absorbing the bunker costs and the wages and other potential fees. And then just one nitpicky one: it looks like you might have layered on some interest rate hedges in the first quarter. The overall, you know, notional amount of the swap went up. Can you just talk about that?
Speaker Change: Got you said that was mainly.
Speaker Change: It will be in the bunker cost of living wage is another.
Speaker Change: Please.
Yes.
Speaker Change: And then and then just one nitpicky one it looks like you might have later.
Speaker Change: Great hedging.
Speaker Change: In the first quarter with the overall.
Speaker Change: No small amount of the swap went up can you just talk about that.
Charles Kennedy Fratt: Yes, we did a small amount of additional fixing, we are at the moment we're well within our policy range of the amount of debt that is either fixed rate or effectively fixed through hedges and in due course as those hedges come off we'll need to put some more in place and so we did a small amount of that quite early in Q1 so we were fairly pleased with the rate that we got at that stage even though rates have moved a little bit since then.
Speaker Change: Yes, we did a small amount of additional fixing.
Speaker Change: We are well within.
Speaker Change: Policy range, if the amount of debt is either fixed rates or effectively fixed through hedges.
Speaker Change: And in due course as those hedges come off will need to put some more in place and so we did a small amount. So thats quite early in Q1. So we are fairly pleased with the.
We got that stage, even though rates have moved.
Speaker Change: Since then.
Derek Lowe: Yeah, it looks like you still were able to fix it in the low two range because your average, interest rate costs fixed wise only went up to two from 1.9, right?
Yes, it looks like you still were able to fix in the low two range because your average.
Speaker Change: Great parts fixed why is it only went up to two from $1 nine right.
Charles Kennedy Fratt: Choice was as low as 2 for the new fix, but it certainly was a break that we were happy with.
Speaker Change: Choice is lowest.
Speaker Change: Two for any effects, but it certainly was the rate that we were happy with.
Derek Lowe: Yes, okay. And then, other than the three that you talked about, the HILDA, TORL, I'm sorry, the HILDA, Dan Cisney, and Dan Stabia with open windows and no, you know, longer-term work. Can you just talk about the Carmen? It looks like Repsol has a one-year option at the start of next year. When would the notice period be on that option before it moves to a major oil company for, what is it, four years?
Speaker Change: Yes, yes.
Speaker Change: Okay.
Speaker Change: And then it looks like.
Speaker Change: Other than the three that you talked about the Hilda Torvill I'm, sorry, the Hilda Dan <unk> and Dan Sabia with open Windows.
Speaker Change: And no longer term work can you just talk about the Carmen on it looks like Repsol.
Speaker Change: A year.
Speaker Change: <unk> at the start of next year when would the notice period be on that on that option before it moves to the major oil company for.
Speaker Change: What is it four years.
Speaker Change: Great.
For three years.
Charles Kennedy Fratt: We would generally expect that to be within something like one to three months of the start of the optional period. I don't have the exact terms for that particular one in front of me, but that sort of period would be the latest we'd expect to notice. Okay, great.
Speaker Change: We would generally expect that to be within <unk>.
Speaker Change: Something like one to three months of start with the optional periods I don't have the exact tons for that particular water pumps made bets.
Speaker Change: That sort of periods, we would expect to.
Speaker Change: It will be the license we would expect from that.
Charles Kennedy Fratt: Okay, great. Well, congratulations, Derek, on the contracting chartering during the quarter. All right, thank you both. Look forward to it.
Speaker Change: Okay, great well, congratulations Derek on the contracting chartering during the quarter.
Speaker Change: Alright. Thank you look forward do you are welcome.
Speaker Change: Right.
Pavel Oliva: And our next question comes from Pavel Oliva of Rock Hill Global.
Speaker Change: And our next question comes from Paul about Alibaba Rock Hill Global.
Pavel Oliva: Hi, good morning, congratulations on a great quarter. I have a few questions if you don't mind. One is... My understanding is that the new builds, that the prices of new builds are around $160 for the North Sea and $140 for Brazil per million barrels and that there are really no new builds for the North Sea. Does the value of the new builds impact daily pricing of the existing fleets?
Speaker Change: Hi, good morning, congratulations on a great quarter.
Paul: I have few questions. If you don't mind one is.
Speaker Change: My understanding is that the new builds.
Speaker Change: That the prices of new builds are around 164.
Speaker Change: The North Sea and 144, Brazil million.
Speaker Change: And there are really no new builds for north sea.
Speaker Change: Dose.
Speaker Change: Value often you built impact pricing daily pricing.
Speaker Change: All of the existing fleet.
Derek Lowe: I wouldn't say so, certainly not in the North Sea. I mean, we're aware of the short to medium-term issues around when demand for those for North Sea vessels doesn't come in, and that's a far greater driver than anything else.
Speaker Change: I wouldn't say so.
Speaker Change: Certainly not in the North Sea, we're aware of the.
Speaker Change: Short to medium term.
Speaker Change: Given issues around when demand for those four north sea vessels Couldnt come in and that's a far cry to driver than anything else.
Speaker Change: I see so.
Pavel Oliva: I see. So, um... The charters that are on those new ships, for example, in Brazil, would be similar to what they are now, or would they reflect the new cost and the new cost of capital?
Speaker Change: Yes.
Speaker Change: Okay. So the charters that are on those new ships for example in Brazil would be similar to what they are now or they would reflect the new cost and then your cost of capital.
Derek Lowe: They will reflect the terms or market conditions at the time they were entered into, so the newest ones, obviously, you'd expect to be, let's say, recognisably current, but some of the other vessels that aren't yet delivered obviously were contracted some time ago and will be on different terms.
Speaker Change #100: I would tell you they will reflect the terms market conditions at the time they were entered into the.
Speaker Change #101: The newest ones, obviously, you would expect to be.
Speaker Change #102: Let's say recognizably current but some of the other vessels that all you have to let it obviously what contracted sometimes the guy who must be on different terms.
Pavel Oliva: If I have a ship that's coming off higher and I have to recharter it, is it fair to say that, for example, in Brazil, the rates would be a lot higher than they were at the Historical Charter?
Speaker Change #103: Alright so.
Speaker Change #103: If I.
Speaker Change #103: Have a ship that's coming.
Speaker Change #103: Off hire and I have two.
Speaker Change #103: Re charter rate is it fair to say that for example in Brazil the rates would be.
Speaker Change #103: A lot higher than they were.
Speaker Change #103: Historical charter.
Derek Lowe: We are seeing them firming up, if anything, so we clearly welcome the direction that's going in. And can I ask?
Speaker Change #103: We are we are seeing them firming up if anything.
Speaker Change #103: Clearly welcome the direction Thats going in.
Pavel Oliva: Can I ask in the North Sea, besides your ships, are there any other ships, like Altera ships, that may be available for those projects? You know, are these ships sort of like that?
Speaker Change #104: And can I ask in the North sea. Besides your ships are there any other ships.
Speaker Change #105: Alterra ships.
Speaker Change #105: May be available for four dose projects or.
Speaker Change #105: Are these ships sort of it.
Derek Lowe: I understand there is competing capacity; I don't have figures to hand on that, and I wouldn't want to comment on it for other operators, Tractoral Profile anyway, but yes, we understand there is capacity aside from our own.
Speaker Change #106: I understand there is competing capacity are there enough figures to handle that and I wouldn't want to comment on that other operators.
Speaker Change #106: Contractual profile anyway.
Speaker Change #107: But yes, we understand there is capacity aside from alright.
Pavel Oliva: I see. Okay. And, you know, you had really good results in terms of free cash flow generation in the first quarter, you know, and that's without a lot of the charters. Have you guys considered.., um, potentially buying some shares back at this point, you know, given, um, you know, what the NAV is in light of the, uh, new ships that are being built in Brazil and sort of the values or replacement value of, uh, of the fleet, um, as well as, um, you know, just the ability, you know, by lowering the number of shares to potentially increase the dividend when and if you're ready to reinstate that dividend.
Speaker Change #108: I see okay.
Speaker Change #108: And.
Speaker Change #109: You had.
Speaker Change #109: Really good results.
Speaker Change #109: In terms of free cash flow generation in the first quarter.
Speaker Change #109: And that switch.
Speaker Change #110: Without a lot of the charters have you guys considered.
Speaker Change #109:
Speaker Change #109: Potentially buying some shares back at this point given.
Speaker Change #109: What the Navy is in light of the.
Speaker Change #109: New ships that are being built in Brazil in sort of the values so replacement value of.
Speaker Change #109: After fleet.
Speaker Change #109: As well as.
Speaker Change #109: Yes.
Speaker Change #109: Just.
Speaker Change #109: The ability.
Speaker Change #109: By lowering the number of shares to potentially increase the dividend to win.
Speaker Change #111: When and if youre ready to reinstate that dividend.
Derek Lowe: We certainly understand and appreciate the value of that strategy, and that's a question for the board to be addressing in due course. However, their greatest priority is actually that we continue to make progress on the visibility of our contracting schedule. At the moment, clearly, there are two or three vessels that remain uncontracted, which is quite a rare position for us to be in, and they're more concerned that that capacity is filled first before looking at anything else.
Speaker Change #111: Yes.
Speaker Change #112: Certainly I understand and I appreciate that.
Speaker Change #113: The value of that strategy and that's a question for the board to be addressing in vehicles.
Speaker Change #112: Grace's.
Speaker Change #114: <unk> quality is actually that we continue to make progress on visibility of our contracting schedule.
Speaker Change #114: And at the moment clearly there are two or three vessels.
Speaker Change #114: <unk>.
Speaker Change #114: So I remain uncontrolled, but she's got a reputation for us to be nimble.
Speaker Change #114: We're concerned that that capacity is filled first before looking at.
Speaker Change #115: Is there anything else we sell.
Pavel Oliva: We certainly look forward to the point where that is a really good use of capital. I would also say, if you look at our liquidity position, which we are certainly content with, we had 55, I think, sorry, we had 50 million of cash and cash equivalents at the end of March, but we also had 45 million of drawn down revolving credit facilities. So the net liquidity, if you look at the difference between those, is rather less, and we wouldn't feel, I expect the board wouldn't feel able to invest cash in buying back units when that's the case.
Speaker Change #115: We look forward to the point, where that is a really good use of capital I would also say.
Speaker Change #115: If you look I saw.
Speaker Change #115: Liquidity position, which we are.
Speaker Change #115: Suddenly content with.
Speaker Change #115: <unk>.
Speaker Change #115: We had 50.
Speaker Change #115: T. Five I think so we had $50 million.
Speaker Change #115: Our cash equivalent cash as well.
Speaker Change #116: Cash on cash and cash equivalents at the end of March, but we also had $45 million of drawn down.
Speaker Change #116: The revolving credit facility.
Speaker Change #116: So the net net liquidity if you if you look at the different <unk>.
Speaker Change #117: As Rob unless somebody wouldn't fail I expect the board wouldn't feel able to invest cash in buying back units when that's the position.
Derek Lowe: understood understood, so but as you kind of get to that you know more comfortable position and you know you have repaid a lot of debt so far, you know you would it's something that the board would certainly consider right.
Understood understood.
Speaker Change #117: But as you as you kind of get to that.
Speaker Change #117: A more comfortable position.
Speaker Change #118: You have repaid a lot of debt.
Speaker Change #119: So far.
Speaker Change #120: You would it's something that the board will certainly consider right.
Pavel Oliva: Yes, it's certainly one of the options. Okay, awesome. Very good.
Speaker Change #121: Yes, certainly one of the options.
Derek Lowe: Okay, awesome. Very good. Congratulations on a great quarter and, you know, a terrific performance. Thank you. Thanks, Pavel. I appreciate it.
Speaker Change #122: Okay Awesome, all right very good.
Speaker Change #123: Congratulations on a great quarter and you know.
Terrific performance.
Speaker Change #124: Thank you.
Doug: Thanks, Doug I appreciate it.
Robert Silvera: And our next question comes from Robert Silvera from R.E. Silveria, Associate Marine.
Speaker Change #126: And our next question comes from Robert Silvera from R. E Silvera <unk> associates Marine.
Speaker Change #126: Hello.
Speaker Change #126: Derek.
Robert Silvera: Yes, Derek, thank you for taking my call. And yes, we're marine surveyors, by the way. She dropped the word surveyors.
Speaker Change #126: Yeah.
Yes, Derek Thank you for taking my call.
Speaker Change #127: Yes were marine surveyors.
Speaker Change #127: Dropped towards familiars.
Robert Silvera: In any case, thank you for taking the call, and I'd like to congratulate you on improving the company's situation considerably versus the past. Our input is that, because we own thousands of shares, we would love to see you keep the dividend about where it is for an extended period of time and aggressively continue your move toward reducing debt. And don't take any more drop-downs for the time being because the fleet is fairly new.
Speaker Change #128: In any case.
Speaker Change #129: Thank you for taking the call and like to congratulate you on <unk>.
Speaker Change #129: Improving the company situation considerably versus the past or input is that we would love to because we own thousands of shares we would love to see you keep the dividend.
Speaker Change #129: Where it is for an extended period of time and aggressively continue your move toward reducing debt.
Speaker Change #129: Don't take any more dropdowns for the time being because the fleet is fairly young.
Robert Silvera: And let's fill the gaps, as you've been saying, and get to a position where we have significantly continued to reduce the debt. You have some of the ships already debt-free, and that's really great. So that's our position as shareholders, and we hope you will take that into consideration.
Speaker Change #130: And let's fill the gaps as <unk> been saying and get to the position where we have significantly continued to reduce the debt you have some of the ships already debt free and that's really great.
Speaker Change #130: So that's our position.
Speaker Change #130: As shareholders and we hope you will take that into consideration.
Derek Lowe: Sure, thank you very much. Just to show you again slide 9 if you want to go back to it, the current instalments figure... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .., is basically a 12 month look forward from the ballot sheet date of.., the debt repayments that are coming due via amortisation, and that $91 million, over the 12 months starting 1st April this year is very recognisable on a year-by-year basis for the amount we repay in our debt in cash, and others.
Speaker Change #131: Sure. Thank you very much.
Speaker Change #131: <unk>.
Speaker Change #132: Just show you again slide nine if you want to get back to it.
Speaker Change #133: The current installments figure.
Speaker Change #133: It's basically a 12 month look forward from the balance sheet date of.
Speaker Change #133: The debt repayments that are coming due.
Speaker Change #133: Amortizations.
Speaker Change #133: And that $91 million.
Speaker Change #134: Over the 12 months, starting first rightful lithia is very recognizable.
Speaker Change #134: A year by year basis for the amounts we repay in Opex.
Speaker Change #134: Cash.
Speaker Change #135: Purely on the scheduled repayment time so.
Speaker Change #135: Point is very well.
Speaker Change #135: Taken in and I Hope Youll also pleased with the amount of debt repayment with managing to do already.
Robert Silvera: Yes, very pleased with that, and I'm saying our point is I'm not interested in getting the dividend raised back 52 cents right away, but rather, continuously aggressively continue to pay down the debt. Don't take any drop-downs for at least a year at this point, and fill the gaps on where we are with our ships, putting us in a very, very solid position, and I think the share price will reflect it.
Speaker Change #136: Yes, very pleased with that.
Speaker Change #137: I'm, saying our point is I'm not interested in getting the dividend raise back 52 cents right away, but rather continuously aggressively continue to pay down the debt don't take any dropdowns for at least a year at this point.
Speaker Change #137: And filling the gaps on where we are with our ships.
Putting us in a very very solid position I think the share price price will reflect that and.
Robert Silvera: The future with the market in Brazil looking as good as it is. Given that much time that I'm talking about a year, we will know the market a lot better by then, and we can make very judicious decisions on what to add to the fleet in the future.
Speaker Change #137: In the future with the market in Brazil, looking as good as it is.
Speaker Change #137: Given that much time that I'm talking about a year, we will know the market a lot better by then and we can make very judicious decisions on what to add to the fleet in the future.
Derek Lowe: Thank you, Derek. Thank you. Bye-bye.
Speaker Change #138: Derrick Thank you.
Speaker Change #138: Right.
Speaker Change #139: Bye bye.
Speaker Change #139: Alright.
Carla: As a reminder to ask a question, please press star followed by 1 on your telephone keypad. We currently have no further questions. I will hand over to Derek for any final remarks.
Speaker Change #140: As a reminder to ask a question. Please press star followed by one on your telephone keypad.
Speaker Change #141: We currently have no further questions I'll hand back over to Derek for any final remarks.
Derek Lowe: Thank you all again for joining this earnings call for Knot Offshore Partners' first quarter in 2024, and I look forward to speaking with you again following the second quarter results.
Derek Lowe: Well. Thank you all again for joining us earnings call for cut offshore partners first quarter in 2024, and I look forward to speaking with you again following our second quarter results.
Carla: And this concludes today's conference call. Thank you for joining us. You may now disconnect your line.
And this concludes today's conference call. Thank you for joining you may now disconnect your lines.
Derek Lowe: Okay.