Benzinga | Aug 26, 2021 09:46AM EDT

KNOT Offshore Partners Stock Down After Q2 Results

* KNOT Offshore Partners LP (NYSE:KNOP) reported second-quarter revenue of $70.94 million, up ~1% year-over-year, beating the consensus of $68.6 million.

* The company recorded an operating loss of $(1.2) million, compared to a profit of $33.36 million a year ago.

* Net loss was $(10.9) million compared to net income of $21.7 million a year ago.

* KNOT Offshore recorded a $29.4 million non-cash write-down in respect of the Windsor Knutsen. Adjusted operating income was $28.2 million, and adjusted net income was $18.5 million.

* Distributable cash flow was $24 million, compared to $21.7 million for 1Q21.

* Fleet operated with 96.9% utilization for scheduled operations.

* Vessel operating expenses decreased to $17.4 million, from $18.6 million 1Q21.

* Adjusted EBITDA decreased by 6.7% to $52 million, and margin contracted by 606 bps to 73.4%.

* On August 25, KNOT Offshore's subsidiaries entered a new $345 million senior secured credit facility.

* KNOT Offshore held cash equivalents of $51.6 million and $50.0 million of capacity under its existing revolving credit facilities.

* KNOT Offshore generated cash from operating activities year-to-date of $79.81 million, compared to $80.79 million a year ago.

* Additionally, the company has entered into an 'at the market' sales agreement with B. Riley Securities, Inc., to sell up to $100 million of common units from time to time.

* Outlook: KNOT Offshore expects Q3 earnings to be affected by 17 days off-hire of the Vigdis Knutsen, a minimum of 14 days off-hire of the Tordis Knutsen, and several days for the Windsor Knutsen.

* Price Action: KNOP shares are trading lower by 3.15% at $17.7336 on the last check Thursday.