Hello everyone. My name is Drew and I will be your conference operator today. At this time, I would like to welcome everyone to the KNOT’s Third Quarter 2023 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] I will now turn the call over to your host, Derek Lowe. Please go ahead.

Thank you, Drew, and good morning, ladies and gentlemen. My name is Derek Lowe, and I have recently joined KNOT Offshore Partners, taking office as Chief Executive and Chief Financial Officer in September 2023. It is my pleasure for the first time to welcome you to an earnings call for the partnership. Our website is knotoffshorepartners.com, and you can find there the earnings release for the third quarter of 2023 and also 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 of annual and quarterly results. 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. On the Slide 3, we have the financial and operational headlines for Q3. Revenues were $72.7 million, operating income $20.6 million, net income $12.6 million, and adjusted EBITDA $48.1 million. We closed Q3 with $58.2 million in available liquidity, which comprised $53.2 million of cash and equivalents, plus $5 million in undrawn capacity and our debt facilities. We operated with 98.8% utilization of the vessel time available for scheduled operations, which is equivalent to 97.4% of total fleet time after accounting for the planned dry dockings of the Brasil Knutsen and Hilda Knutsen. Following…

Thank you. We will now start today’s Q&A session. [Operator Instructions] Our first question today comes from Liam Burke from B. Riley. Your line is now open. Please go ahead.

I wanted to ask you about the Cisne and Sabia. They are both in the offshore Brazil, which is looks like to be a really, really fast-growing market, but the size of the vessels are not ideal for Brazil. How do you reconcile that? Is there a fit in that market at all?

We continue to market the vessels both there in the North Sea, and I think there is a function of supply and demand. So if demand for vessel capacity reaches a sufficient level, then that's the source of circumstance in which we might see the vessels contracted there, but we are mindful, yes, that they are smaller than ideal for that market.

And you also talked about possibly repositioning, I guess, that would be, in the prepared -- in your press release, you have mentioned repositioning as well.

Yes. So as I say, we are marketing the vessels to both our major markets. And if we anticipated client demands and certainly, if there is a clear contracts in a different location then we would consider moving them.

Okay. And then just on the other two vessels, the Hilda and the Torill. Are you seeing any interest out of that market? Or what's the degree of interest in Brazil?

Yes, I mean, it has been it is clearly slower than Brazil. And I don't want to comment on specific conversations that we are having with our clients. But clearly, our contracting team are marketing the vessels are pretty heavily in the North Sea market and in Brazil at the moment. We expect the requirement for shuttle tankers to pick-up in the North Sea rather later on during next year once [indiscernible] comes increasingly online. And it could well take during the course of next year for contracts for that work to come through.

[Operator Instructions] Our next question today comes from Robert Silvera from R. E. Silvera. Your line is now open. Please go ahead.

We have not contracted for any recent drop downs since the end of last year, is that correct?

That's right, yes.

Can you help me understand then how our long-term debt from the end of last year went from $686 million to $820 million plus currently?

Sure. You need to look at that in -- so we're looking at Slide 8. You need to look at that in the context of the current liabilities at both dates as well, and then also the total liability figure at the bottom of the, so this will be on the right hand side of Slide 8, at the bottom of that table as well. This is about refinancing that took place on one of our larger facilities during the first half of the year. And so, the amount due for repayment then, which was the current liability at the end of '22 got transferred into a longer liability and therefore long-term debt by the time. And I think by the end of June, actually, but certainly by the end of September.

Okay. I thought that's what it might mean. So overall, we've really lowered the liability by $81 million which is good.

That's right.

And this market seems to have liked it in the early market pricing. Could you give me any color on what's happening in the Bering Sea?

I don't have any color available on that, I'm afraid.

So, there's no opportunity for us up there?

Well, our contracting teams are marketing in many geographies but I don't have a specific comment on the Bering Sea.

Well, that's all for me. Thank you, and welcome. And I hope that you can at least round off the dividend from $0.026 to $0.03, make it an even number. Anyhow, thank you very much.

Thanks, Robert. Appreciate it. Thank you.

It looks like we have no further questions at this time. I'll now hand back over to Derek Lowe for any final remarks.

Thank you, everyone, again for joining this earnings call for KNOT Offshore Partners third quarter in '23, and I look forward to speaking with you again following the fourth quarter results.

That concludes today's KNOT third quarter 2023 earnings results conference. You may now disconnect your line.