Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | H1 |
Trading Symbol | KNOP |
Entity Registrant Name | KNOT Offshore Partners LP |
Entity Central Index Key | 1,564,180 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating revenues: (Notes 3 and 12) | ||||
Loss of hire insurance recoveries | $ 450 | $ 2,276 | $ 450 | $ 3,426 |
Other income | 94 | 593 | 750 | 687 |
Total revenues | 69,765 | 54,406 | 137,808 | 99,397 |
Operating expenses: (Note 12) | ||||
Depreciation | 22,332 | 17,372 | 43,906 | 33,125 |
General and administrative expenses | 1,350 | 1,493 | 2,695 | 2,962 |
Total operating expenses | 37,656 | 28,292 | 73,822 | 55,796 |
Operating income | 32,109 | 26,114 | 63,986 | 43,601 |
Finance income (expense): (Note 12): | ||||
Interest income | 161 | 44 | 296 | 80 |
Interest expense (Note 5) | (12,526) | (7,252) | (23,119) | (13,466) |
Other finance expense (Note 5) | (288) | (328) | (626) | (630) |
Realized and unrealized gain (loss) on derivative instruments (Note 6) | 1,968 | (1,536) | 11,944 | (1,017) |
Net gain (loss) on foreign currency transactions | 260 | (124) | (70) | (218) |
Total finance expense | (10,425) | (9,196) | (11,575) | (15,251) |
Income before income taxes | 21,684 | 16,918 | 52,411 | 28,350 |
Income tax benefit (Note 8) | (3) | (3) | (6) | (6) |
Net income | 21,681 | 16,915 | 52,405 | 28,344 |
Net income | 21,681 | 16,915 | 52,405 | 28,344 |
Series A Preferred unitholders' interest in net income | 1,800 | 1,009 | 3,600 | 1,653 |
General Partner's interest in net income | 367 | 294 | 901 | 493 |
Limited Partners' interest in net income | 19,514 | 15,613 | 47,904 | 26,198 |
Time Charter And Bareboat Revenues [Member] | ||||
Operating revenues: (Notes 3 and 12) | ||||
Revenue | 69,221 | 51,537 | 136,608 | 95,284 |
Vessel Operating Expenses [Member] | ||||
Operating expenses: (Note 12) | ||||
Operating expenses | $ 13,974 | $ 9,427 | $ 27,221 | $ 19,709 |
Common Units [Member] | ||||
Earnings per unit (Basic): (Note 14) | ||||
Earnings per unit (basic) | $ 0.597 | $ 0.526 | $ 1.465 | $ 0.886 |
Earnings per unit (Diluted): (Note 14) | ||||
Earnings per unit (diluted) | 0.585 | 0.522 | 1.415 | 0.886 |
General Partner Unit [Member] | ||||
Earnings per unit (Basic): (Note 14) | ||||
Earnings per unit (basic) | 0.597 | 0.526 | 1.465 | 0.882 |
Earnings per unit (Diluted): (Note 14) | ||||
Earnings per unit (diluted) | $ 0.597 | $ 0.526 | $ 1.465 | $ 0.882 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,681 | $ 16,915 | $ 52,405 | $ 28,344 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Comprehensive income | $ 21,681 | $ 16,915 | $ 52,405 | $ 28,344 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents (Note 7) | $ 45,085 | $ 46,104 |
Amounts due from related parties (Note 12) | 1,381 | 571 |
Inventories | 2,495 | 2,241 |
Derivative assets (Notes 6 and 7) | 3,875 | 1,579 |
Other current assets | 2,199 | 5,610 |
Total current assets | 55,035 | 56,105 |
Long-term assets: | ||
Vessels, net of accumulated depreciation (Note 9) | 1,803,204 | 1,723,023 |
Intangible assets, net (Note 10) | 2,195 | 2,497 |
Derivative assets (Notes 6 and 7) | 19,765 | 9,850 |
Accrued income | 2,577 | 1,693 |
Total long term assets | 1,827,741 | 1,737,063 |
Total assets | 1,882,776 | 1,793,168 |
Current liabilities: | ||
Trade accounts payable (Note 12) | 4,866 | 5,224 |
Accrued expenses | 6,860 | 6,504 |
Current portion of long-term debt (Notes 7 and 11) | 80,206 | 92,985 |
Current portion of derivative liabilities (Notes 6 and 7) | 261 | 978 |
Income taxes payable | 18 | 175 |
Current portion of contract liabilities | 1,518 | 1,518 |
Prepaid charter and deferred revenue | 9,686 | 9,980 |
Amount due to related parties (Note 12) | 1,766 | 5,450 |
Total current liabilities | 105,181 | 122,814 |
Long-term liabilities: | ||
Long-term debt (Notes 7 and 11) | 1,029,053 | 933,630 |
Derivative liabilities (Notes 6 and 7) | 164 | |
Contract liabilities | 5,963 | 6,722 |
Deferred tax liabilities (Note 8) | 632 | 624 |
Total long-term liabilities | 1,035,648 | 941,140 |
Total liabilities | 1,140,829 | 1,063,954 |
Commitments and contingencies (Note 13) | ||
Partners' capital: | ||
Total partners' capital | 652,683 | 639,950 |
Total liabilities and equity | 1,882,776 | 1,793,168 |
Series A Preferred Unit [Member] | ||
Long-term liabilities: | ||
Series A Convertible Preferred Units (Notes 16 and 17) | 89,264 | 89,264 |
Common Units [Member] | ||
Partners' capital: | ||
Common unitholders | 640,969 | 628,471 |
Total partners' capital | 640,969 | 628,471 |
General Partner Unit [Member] | ||
Partners' capital: | ||
General partner interest | 11,714 | 11,479 |
Total partners' capital | $ 11,714 | $ 11,479 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Common Units [Member] | General Partner Unit [Member] | Accumulated Other Comprehensive Income [Member] | Series A Preferred Unit [Member] |
Beginning Balance at Dec. 31, 2016 | $ 521,710 | $ 511,413 | $ 10,297 | ||
Net Income | 62,811 | 61,651 | 1,160 | ||
Other comprehensive income | 0 | 0 | 0 | $ 0 | |
Cash distributions | (65,517) | (64,307) | (1,210) | ||
Net proceeds from issuance of common units | 120,946 | 119,714 | 1,232 | ||
Net proceeds from sale of Series A Convertible Preferred Units | 0 | 0 | 0 | 0 | |
Ending Balance at Dec. 31, 2017 | 639,950 | 628,471 | 11,479 | ||
Net income | $ 5,253 | ||||
Cash distributions | (3,453) | ||||
Net proceeds from sale of Series A Convertible Preferred Units | 87,464 | ||||
Convertible preferred units, ending balance at Dec. 31, 2017 | 89,264 | ||||
Net Income | 48,805 | 47,904 | 901 | ||
Other comprehensive income | 0 | 0 | 0 | $ 0 | |
Cash distributions | (36,068) | (35,402) | (666) | ||
Net proceeds from issuance of common units | (4) | (4) | |||
Ending Balance at Jun. 30, 2018 | $ 652,683 | $ 640,969 | $ 11,714 | ||
Net income | 3,600 | ||||
Cash distributions | (3,600) | ||||
Convertible preferred units, ending balance at Jun. 30, 2018 | $ 89,264 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 52,405 | $ 28,344 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 43,906 | 33,125 |
Amortization of contract intangibles / liabilities | (456) | (632) |
Amortization of deferred revenue | (743) | (743) |
Amortization of deferred debt issuance cost | 1,271 | 755 |
Drydocking expenditure | (3,803) | (3,800) |
Income tax expense | 6 | 6 |
Income taxes paid | (172) | (182) |
Unrealized (gain) loss on derivative instruments | (11,253) | (757) |
Unrealized (gain) loss on foreign currency transactions | (44) | (2) |
Changes in operating assets and liabilities: | ||
Decrease (increase) in amounts due from related parties | (290) | 38,590 |
Decrease (increase) in inventories | 4 | (216) |
Decrease (increase) in other current assets | 3,516 | (1,914) |
Decrease (increase) in accrued revenue | (884) | (300) |
Increase (decrease) in trade accounts payable | (1,222) | 71 |
Increase (decrease) in accrued expenses | (656) | 826 |
Increase (decrease) prepaid revenue | 449 | 360 |
Increase (decrease) in amounts due to related parties | (3,800) | 4,490 |
Net cash provided by operating activities | 78,234 | 98,021 |
INVESTING ACTIVITIES | ||
Disposals (additions) to vessel and equipment | (10) | (180) |
Net cash provided by (used in) investing activities | (15,386) | (60,875) |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 145,500 | 130,000 |
Repayment of long-term debt | (146,002) | (167,460) |
Repayment of long-term debt from related parties | (22,535) | (70,663) |
Payment of debt issuance cost | (1,114) | (1,140) |
Cash distribution | (39,668) | (33,403) |
Net proceeds from issuance of common units | (4) | 54,879 |
Net proceeds from sale of Convertible Preferred Units | 87,443 | |
Net cash provided by (used in) financing activities | (63,823) | (344) |
Effect of exchange rate changes on cash | (45) | 35 |
Net increase in cash and cash equivalents | (1,019) | 36,837 |
Cash and cash equivalents at the beginning of the period | 46,104 | 27,664 |
Cash and cash equivalents at the end of the period | 45,085 | 64,501 |
Tordis Knutsen [Member] | ||
INVESTING ACTIVITIES | ||
Payments for acquisition, net of cash acquired | (32,374) | |
Vigdis Knutsen [Member] | ||
INVESTING ACTIVITIES | ||
Payments for acquisition, net of cash acquired | $ (28,321) | |
Anna Knutsen [Member] | ||
INVESTING ACTIVITIES | ||
Payments for acquisition, net of cash acquired | $ (15,376) |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | 1) Description of Business KNOT Offshore Partners LP (the “Partnership”) is a publicly traded Marshall Islands limited partnership initially formed for the purpose of acquiring 100% ownership interests in four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (“KNOT”) in connection with the Partnership’s initial public offering of common units (the “IPO”), which was completed in April 2013. As of June 30, 2018, the Partnership had a fleet of sixteen shuttle tankers, the Windsor Knutsen Bodil Knutsen Recife Knutsen Fortaleza Knutsen Carmen Knutsen, Hilda Knutsen, Torill Knutsen Dan Cisne Dan Sabia Ingrid Knutsen Raquel Knutsen, Tordis Knutsen Vigdis Knutsen Lena Knutsen, Brasil Knutsen Anna Knutsen, The initial term for a time charter or bareboat charter commences upon the vessel’s delivery to the customer. The Partnership’s charters include options, exercisable by the customer, to extend the charter’s initial term. Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charters for the Windsor Knutsen Bodil Knutsen Windsor Knutsen one-year Bodil Knutsen Recife Knutsen Fortaleza Knutsen Carmen Knutsen Hilda Knutsen Torill Knutsen Dan Cisne Dan Sabia Ingrid Knutsen Raquel Knutsen Tordis Knutsen Vigdis Knutsen Lena Knutsen Brasil Knutsen Anna Knutsen Pursuant to the Partnership’s Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), KNOT Offshore Partners GP LLC, a wholly owned subsidiary of KNOT, and the general partner of the Partnership (the “General Partner”), has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the Partnership’s IPO until the time of the Partnership’s first annual general meeting (“AGM”) on June 25, 2013, the General Partner retained the sole power to appoint, remove and replace all members of the Partnership’s board of directors. From the first AGM, four of the seven board members became electable by the common unitholders and accordingly, from this date, KNOT, as the owner of the General Partner, no longer retained the power to control the Partnership’s board of directors and, hence, the Partnership. As a result, the Partnership is no longer considered to be under common control with KNOT and as a consequence, the Partnership accounts for acquisitions of businesses and assets under the purchase method of accounting and not as transfers of equity interests between entities under common control. All acquisitions have been consolidated into the Partnership’s results as of the date of acquisition. On March 1, 2018, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT Shuttle Tankers 30 AS, the company that owns the Anna Knutsen Anna Knutsen Anna Knutsen |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies (a) Basis of Preparation The accompanying unaudited condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of management of the Partnership, all adjustments considered necessary for a fair presentation, which are of normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The unaudited condensed consolidated financial statements do not include all the disclosures and information required for a complete set of annual financial statements; and, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2017, which are included in the Partnership’s Annual Report on Form 20-F 20-F”). (b) Significant Accounting Policies Except as described below under (c) Recent Accounting Pronouncements Adoption of new accounting standards 20-F. (c) Recent Accounting Pronouncements Adoption of new accounting standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations: Clarifying the Definition of a Business. Anna Knutsen In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) 2014-09 Accounting pronouncements to be adopted In February 2016, the FASB issued revised guidance for leasing. The objective is to establish the principles that lessors and lessees shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The standard is effective for annual periods beginning after December 15, 2018. The Partnership is currently assessing the impact the adoption of this standard will have on the consolidated financial statements. Based upon preliminary assessments performed to date, the Partnership does not expect adoption of the standard to have material effects on the accounting for existing leases in the consolidated financial statements. Any other accounting pronouncements yet to be adopted by the Partnership are consistent with those disclosed in the Partnership’s audited consolidated financial statements for the year ended December 31, 2017. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 3) Segment Information The Partnership has not presented segment information as it considers its operations to occur in one reportable segment, the shuttle tanker market. As of June 30, 2018, the Partnership’s fleet consisted of sixteen vessels and operated under twelve time charters and four bareboat charters. As of June 30, 2017, the Partnership’s fleet consisted of thirteen vessels and operated under nine time charters and four bareboat charters. Under the time charters and bareboat charters, the charterer, not the Partnership, controls the choice of which trading areas the applicable Vessel will serve. Accordingly, the Partnership’s management, including the chief operating decision makers, does not evaluate performance according to geographical region. The following table presents revenues and percentages of consolidated revenues for customers that accounted for more than 10% of the Partnership’s consolidated revenues during the three and six months ended June 30, 2018 and 2017. All of these customers are subsidiaries of major international oil companies. Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Eni Trading and Shipping S.p.A. $ 11,555 17% $ 11,345 22% $ 22,936 17% $ 22,905 24% Fronape International Company, a subsidiary of Petrobras Transporte S.A. 11,248 16% 11,249 22% 22,378 16% 22,378 23% Equinor ASA 5,850 8% 5,778 11% 11,582 8% 11,459 12% Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 9,283 13% 7,094 14% 18,222 13% 14,396 15% Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 20,399 29% 11,675 23% 40,572 30% 15,401 16% Standard Marine Tønsberg AS, a Norwegian subsidiary of ExxonMobil 4,448 6% 4,396 9% 8,847 6% 8,745 9% Galp Sinopec Brasil Services B.V. 6,438 9% — 0% 12,071 9% — 0% |
Insurance Proceeds
Insurance Proceeds | 6 Months Ended |
Jun. 30, 2018 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Insurance Proceeds | 4) Insurance Proceeds Raquel Knutsen In February 2017, the Raquel Knutsen off-hire In addition, for the three and six months ended June 30, 2017, the Partnership recorded $2.17 million and $3.89 million, respectively, for recoveries up to the amount of loss under hull and machinery insurance for the repairs as a result of the propeller hub damage to the Raquel Knutsen. For the three and six months ended June 30, 2017, $0.1 million is classified under vessel operating expense along with the cost of the repairs. Carmen Knutsen During the fourth quarter of 2017, the Carmen Knutsen 5-year Carmen Knutsen off-hire Carmen Knutsen off-hire In addition, for the three and six months ended June 30, 2018, the Partnership received payments for loss under its hull and machinery insurance of $1.5 million. |
Other Finance Expenses
Other Finance Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift, Interest [Abstract] | |
Other Finance Expenses | 5) Other Finance Expenses (a) Interest Expense The following table presents a reconciliation of total interest cost and interest expense as reported in the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Interest expense $ 11,830 $ 6,846 $ 21,848 $ 12,711 Amortization of debt issuance cost and fair value of debt assumed 696 406 1,271 755 Total interest cost $ 12,526 $ 7,252 $ 23,119 $ 13,466 (b) Other Finance Expense The following table presents the other finance expense for three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Bank fees, charges $ 151 $ 119 $ 241 $ 191 Guarantee costs 140 158 282 318 Commitment fees (3 ) 51 103 121 Total other finance expense $ 288 $ 328 $ 626 $ 630 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 6) Derivative Instruments The unaudited condensed consolidated interim financial statements include the results of interest rate swap contracts to manage the Partnership’s exposure related to changes in interest rates on its variable rate debt instruments and the results of foreign exchange forward contracts to manage its exposure related to changes in currency exchange rates on its operating expenses, mainly crew expenses, in currency other than U.S. Dollars and on its contract obligations. The Partnership does not apply hedge accounting for derivative instruments. The Partnership does not speculate using derivative instruments. By using derivative financial instruments to economically hedge exposures to changes in interest rates, the Partnership exposes itself to credit risk and market risk. Derivative instruments that economically hedge exposures are used for risk management purposes, but these instruments are not designated as hedges for accounting purposes. Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Partnership, which creates credit risk for the Partnership. When the fair value of a derivative instrument is negative, the Partnership owes the counterparty, and, therefore, the Partnership is not exposed to the counterparty’s credit risk in those circumstances. The Partnership minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Partnership do not contain credit risk-related contingent features. The Partnership has not entered into master netting agreements with the counterparties to its derivative financial instrument contracts. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Partnership assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities. The Partnership’s has historically used variable interest rate mortgage debt to finance its vessels. The variable interest rate mortgage debt obligations expose the Partnership to variability in interest payments due to changes in interest rates. The Partnership believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, the Partnership has entered into London Interbank Offered Rate (“LIBOR”)-based interest rate swap contracts to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR. These swaps change the variable rate cash flow exposure on the mortgage debt obligations to fixed cash flows. Under the terms of the interest rate swap contracts, the Partnership receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed rate debt for the notional amount of its debt hedged. As of June 30, 2018, the Partnership had entered into various interest swap agreements for a total notional amount of $539.5 million to hedge against the interest rate risks of its variable rate borrowings. Under the terms of the interest rate swap agreements, the Partnership receives interest based on three or six month LIBOR and pays a weighted average interest rate of 1.82%. As of June 30, 2018 and December 31, 2017, the total notional amount of the Partnership’s outstanding interest rate swap contracts that were entered into in order to hedge outstanding or forecasted debt obligations were $539.5 million and $650.5 million, respectively. As of June 30, 2018 and December 31, 2017, the carrying amount of the interest rate swaps contracts were net assets of $23.5 million and $9.7 million, respectively. See Note 7—Fair Value Measurements. Changes in the fair value of interest rate swap contracts are reported in realized and unrealized gain (loss) on derivative instruments in the same period in which the related interest affects earnings. The Partnership and its subsidiaries utilize the U.S. Dollar as their functional and reporting currency, because all of their revenues and the majority of their expenditures, including the majority of their investments in vessels and their financing transactions, are denominated in U.S. Dollars. Payment obligations in currencies other than the U.S. Dollar, and in particular operating expenses in Norwegian Kroner (“NOK”), expose the Partnership to variability in currency exchange rates. The Partnership believes that it is prudent to limit the variability of a portion of its currency exchange exposure. To meet this objective, the Partnership entered into foreign exchange forward contracts to manage fluctuations in cash flows resulting from changes in the exchange rates towards the U.S. Dollar. The agreements change the variable exchange rate to fixed exchange rates at agreed dates. As of June 30, 2018 and December 31, 2017, the total contract amount in foreign currency of the Partnership’s outstanding foreign exchange forward contracts that were entered into to economically hedge outstanding future payments in currencies other than the U.S. Dollar were NOK 202.1 million and NOK 249.9 million, respectively. As of June 30, 2018 and December 31, 2017, the carrying amount of the Partnership’s foreign exchange forward contracts was a net liability of $0.1 million and a net asset of $0.6 million, respectively. See Note 7—Fair Value Measurements. The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Realized gain (loss): Interest rate swap contracts $ 57 $ (938 ) $ (247 ) $ (1,607 ) Foreign exchange forward contracts 134 (97 ) 1,239 (166 ) Total realized gain (loss): 191 (1,035 ) 992 (1,773 ) Unrealized gain (loss): Interest rate swap contracts 2,995 (1,334 ) 11,942 (275 ) Foreign exchange forward contracts (1,218 ) 833 (990 ) 1,031 Total unrealized gain (loss): 1,777 (501 ) 10,952 756 Total realized and unrealized gain (loss) on derivative instruments: $ 1,968 $ (1,536 ) $ 11,944 $ (1,017 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7) Fair Value Measurements (a) Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of June 30, 2018 and December 31, 2017. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. June 30, 2018 December 31, 2017 (U.S. Dollars in thousands) Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents $ 45,085 $ 45,085 $ 46,104 $ 46,104 Current derivative assets: Interest rate swap contracts 3,693 3,693 950 950 Foreign exchange forward contracts 182 182 629 629 Non-current Interest rate swap contracts 19,765 19,765 9,850 9,850 Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3 3 961 961 Foreign exchange forward contracts 258 258 17 17 Non-current Interest rate swap contracts — — 164 164 Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,117,045 1,115,285 1,033,330 1,032,484 The carrying amounts shown in the table above are included in the consolidated balance sheets under the indicated captions. Carrying amount of long-term debt, current and non-current, The fair values of the financial instruments shown in the above table as of June 30, 2018 and December 31, 2017 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Partnership’s own judgment about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Partnership based on the best information available in the circumstances, including expected cash flows, appropriately risk-adjusted discount rates and available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents and restricted cash • Interest rate swap contracts • Foreign exchange forward contracts mid-rates • Long-term debt (b) Fair Value Hierarchy The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of June 30, 2018 and December 31, 2017: Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) Carrying Value June 30, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 45,085 $ 45,085 $ — $ — Current derivative assets: Interest rate swap contracts 3,693 — 3,693 — Foreign exchange forward contracts 182 — 182 — Non-current Interest rate swap contracts 19,765 — 19,765 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3 — 3 — Foreign exchange forward contracts 258 — 258 — Non-current Interest rate swap contracts — — — — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,117,045 — 1,115,285 — Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) Carrying Value December 31, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 46,104 $ 46,104 $ — $ — Current derivative assets: Interest rate swap contracts 950 — 950 — Foreign exchange forward contracts 629 — 629 — Non-current Interest rate swap contracts 9,850 — 9,850 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 961 — 961 — Foreign exchange forward contracts 17 — 17 — Non-current Interest rate swap contracts 164 — 164 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,033,330 — 1,032,484 — The Partnership’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2 or Level 3 as of June 30, 2018 and December 31, 2017. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8) Income Taxes Components of Current and Deferred Tax Expense After the reorganization of the Partnership’s predecessor’s activities into the new group structure in February 2013, all profit from continuing operations in Norway is taxable within the tonnage tax regime. The consequence of the reorganization was a one-time Fortaleza Knutsen Recife Knutsen The total amount of the entrance tax was estimated to be approximately $3.0 million, which was recognized in the three months ended March 31, 2013. The entrance tax is payable over several years and is calculated by multiplying the tax rate by the declining balance of the gain, which will decline by 20% each year. The amount payable will be affected by the change in tax rate which was reduced to 23% in 2018 from 24% in 2017, from 25% in 2016, from 27% in 2014 and from 28% in 2013 and the fluctuation in currency rates. Approximately $0.2 of the entrance tax was paid during the first quarter of 2018 and 2017. As of June 30, 2018 and December 31, 2017, UK income tax is presented as income taxes payable, while $0.6 million is presented as non-current Significant components of current and deferred income tax expense attributable to income from continuing operations for the three and six months ended June 30, 2018 and 2017 as follows: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Income before income taxes $ 21,684 $ 16,918 $ 52,411 $ 28,350 Income tax (expense) (3 ) (3 ) (6 ) (6 ) Effective tax rate $ 0 % $ 0 % $ 0 % $ 0 % The Partnership records a valuation allowance for deferred tax assets when it is more likely than not that some of or all of the benefit from the deferred tax assets will not be realized. In assessing the realizability of deferred tax assets, which relates to financial loss carry forwards and other deferred tax assets within the tonnage tax regime, the Partnership considers whether it is more-likely-than-not |
Vessels and Equipment
Vessels and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Vessels and Equipment | 9) Vessels and Equipment (U.S. Dollars in thousands) Vessels & equipment Accumulated depreciation Net Vessels Vessels, December 31, 2016 $ 1,468,913 $ (212,024 ) $ 1,256,889 Additions 522,369 — 522,369 Drydock costs 15,348 — 15,348 Disposals (3,289 ) 3,289 — Depreciation for the year — (71,583 ) (71,583 ) Vessels, December 31, 2017 $ 2,003,341 $ (280,318 ) $ 1,723,023 Additions 117,955 — 117,955 Drydock costs 6,132 — 6,132 Disposals (260 ) 260 — Depreciation for the period — (43,906 ) (43,906 ) Vessels, June 30, 2018 $ 2,127,168 $ (323,964 ) $ 1,803,204 As of June 30, 2018 and December 2017, Vessels with a book value of $1,803 million and $1,723 million, respectively, are pledged as security held as a guarantee for the Partnership’s long-term debt. See Note 11—Long-term debt. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 10) Intangible Assets (U.S. Dollars in thousands) Above market time charter Tordis Knutsen Above market time charter Vigdis Knutsen Total Intangibles, December 31, 2016 $ — $ — $ — Additions 1,468 1,458 2,926 Amortization for the year (253 ) (176 ) (429 ) Intangibles, December 31, 2017 $ 1,215 $ 1,282 $ 2,497 Additions — — — Amortization for the period (152 ) (150 ) (302 ) Intangibles, June 30, 2018 $ 1,063 $ 1,132 $ 2,195 The intangible for the above market value of time charter contract associated with the Tordis Knutsen Vigdis Knutsen |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 11) Long-Term Debt As of June 30, 2018 and December 31, 2017, the Partnership had the following debt amounts outstanding: (U.S. Dollars in thousands) Vessel June 30, 2018 December 31, $220 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen $ 157,142 $ 165,000 $35 million revolving credit facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen 22,000 — Fortaleza and Recife loan facility Fortaleza Knutsen & Recife Knutsen 105,000 109,375 Hilda loan facility Hilda Knutsen 93,846 96,923 $117 million loan facility Torill Knutsen — 73,177 Torill loan facility Torill Knutsen 98,333 — $172.5 million loan facility Dan Cisne, Dan Sabia 86,739 91,339 Ingrid loan facility Ingrid Knutsen 57,802 61,085 Raquel loan facility Raquel Knutsen 65,799 68,414 Tordis loan facility Tordis Knutsen 88,521 91,051 Vigdis loan facility Vigdis Knutsen 89,786 92,316 Lena loan facility Lena Knutsen 88,200 90,650 Brasil loan facility Brasil Knutsen 66,485 69,000 Anna loan facility Anna Knutsen 72,392 $25 million revolving credit facility 25,000 25,000 Total long-term debt 1,117,045 1,033,330 Less: current installments 82,823 95,176 Less: unamortized deferred loan issuance costs 2,617 2,191 Current portion of long-term debt 80,206 92,985 Amounts due after one year 1,034,222 938,154 Less: unamortized deferred loan issuance costs 5,169 4,524 Long-term debt, less current installments and unamortized deferred loan issuance costs $ 1,029,053 $ 933,630 The Partnership’s outstanding debt of $1,117.0 million as of June 30, 2018 is repayable as follows: (U.S. Dollars in thousands) Period repayment Balloon Remainder of 2018 (1) $ 41,362 $ 18,427 2019 (2) 71,903 284,678 2020 61,083 — 2021 61,683 70,811 2022 46,347 236,509 2023 and thereafter 62,341 161,901 Total $ 344,719 $ 772,326 (1) Although $18.4 million of the $77.5 million loan facility financing Ingrid Knutsen (2) Although $141.4 million of the $220 million loan facility and $22 million of the $35 million revolving credit facility financing Windsor Knutsen, Carmen Knutsen Bodil Knutsen Fortaleza Knutsen Recife Knutsen As of June 30, 2018, the interest rates on the Partnership’s loan agreements (other than tranche two of the Ingrid loan facility) were LIBOR plus a fixed margin ranging from 1.8% to 2.5%. On the export credit loan of $39.4 million which is tranche two of the Ingrid loan facility, the annual rate is 3.85% composed of a 2.5% bank facility rate plus a commission of 1.35% to the export credit guarantor. The guarantee commission of 1.35% is classified as other finance expense. On January 30, 2018, the Partnership’s subsidiary, KNOT Shuttle Tankers 15 AS, which owns the vessel Torill Knutsen Torill Knutsen In September 2016, KNOT Shuttle Tankers 30 AS, the subsidiary owning the Anna Knutsen Anna Knutsen Anna Knutsen Anna Knutsen |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12) Related Party Transactions (a) Related Parties Net expenses (income) from related parties included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Statements of operations: Other income: Guarantee income from KNOT (1) $ 94 $ 593 $ 749 $ 687 Operating expenses: Technical and operational management fee from KNOT Management to Vessels (2) 1,509 1,079 3,019 2,028 General and administrative expenses: Administration fee from KNOT Management (3) 449 430 812 783 Administration fee from KOAS (3) 148 111 290 223 Administration fee from KOAS UK (3) 30 31 60 62 Administration and management fee from KNOT (4) 41 52 80 94 Finance income (expense): Interest expense charged from KNOT (5) — — — 52 Total $ 2,083 $ 1,110 $ 3,512 $ 2,555 (U.S. Dollars in thousands) At June 30, At December 31, 2017 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (6) $ 128 $ 89 Drydocking supervision fee from KOAS (6) — 8 Total $ 128 $ 97 (1) Guarantee income from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen Vigdis Knutsen ship-to-ship off-hire Vigdis Knutsen (2) Technical and operational management fee from KNOT Management to Vessels 24-hour (3) Administration fee from KNOT Management and Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. (“KOAS UK”) (4) Administration and management fee from KNOT: (5) Interest expense charged from KNOT: (6) Drydocking supervision fee from KNOT and KOAS (b) Guarantees and Indemnifications Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charters of each of the Windsor Knutsen Bodil Knutsen In April 2014, the Partnership was notified that Shell would not exercise its option to extend the Windsor Knutsen re-delivered On June 1, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 25 AS, the company that owns and operate the Vigdis Knutsen. Vigdis Knutsen ship-to-ship off-hire Vigdis Knutsen Under the Omnibus Agreement, KNOT agreed to indemnify the Partnership until April 15, 2018 (or for a period of at least three years after the purchase of the Hilda Knutsen Torill Knutsen Ingrid Knutsen Raquel Knutsen (c) Transactions with Management and Directors See the footnotes to Note 12(a)—Related Party Transactions for a discussion of the allocation principles for KNOT’s administrative costs, including management and administrative staff, included in the consolidated statements of operations. (d) Amounts Due from (to) Related Parties Balances with related parties consisted of the following: (U.S. Dollars in thousands) At June 30, At December 31, 2017 Balance Sheet: Trading balances due from KOAS $ 232 $ 24 Trading balances due from KNOT and affiliates 1,149 547 Amount due from related parties $ 1,381 $ 571 Trading balances due to KOAS $ 354 $ 898 Trading balances due to KNOT and affiliates 1,412 4,552 Amount due to related parties $ 1,766 $ 5,450 Amounts due from (to) related parties are unsecured and intended to be settled in the ordinary course of business. They primarily relate to vessel management and other fees due to KNOT, KNOT Management, KOAS UK and KOAS. (e) Trade accounts payables Trade accounts payables to related parties are included in total trade accounts payables in the balance sheet. The balances to related parties consisted of the following: (U.S. Dollars in thousands) At June 30, At December 31, 2017 Balance Sheet: Trading balances due to KOAS $ 660 $ 864 Trading balances due to KNOT and affiliates 624 548 Trade accounts payables to related parties $ 1,284 $ 1,412 (f) Acquisitions from KNOT On March 1, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 24 AS, the company that owns and operates the Tordis Knutsen. On June 1, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 25 AS, the company that owns and operates the Vigdis Knutsen. On September 30, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 26 AS, the company that owns and operates the Lena Knutsen. On December 15, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 32 AS, the company that owns and operates the Brasil Knutsen. On March 1, 2018, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 30 AS, the company that owns and operates the Anna Knutsen. The board of directors of the Partnership (the “Board”) and the conflicts committee of the Board (the “Conflicts Committee”) approved the purchase price for each transaction described above. The Conflicts Committee retained a financial advisor to assist with its evaluation of each of the transactions. See Note 15—Acquisitions. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13) Commitments and Contingencies Assets Pledged As of June 30, 2018 and December 31, 2017, Vessels with a book value of $ 1,803 million and $1,723 million, respectively, were pledged as security held as guarantee for the Partnership’s long-term debt and interest rate swap obligations. See Note 6—Derivative Instruments and Note 11—Long-Term Debt. Claims and Legal Proceedings From time to time, the Partnership is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows. Insurance The Partnership maintains insurance on all the Vessels to insure against marine and war risks, which include damage to or total loss of the Vessels, subject to deductible amounts that average $0.15 million per Vessel, and loss of hire. Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. In addition, the Partnership maintains protection and indemnity insurance, which covers third-party legal liabilities arising in connection with the Vessels’ activities, including, among other things, the injury or death of third-party persons, loss or damage to cargo, claims arising from collisions with other vessels and other damage to other third-party property, including pollution arising from oil or other substances. This insurance is unlimited, except for pollution, which is limited to $1 billion per vessel per incident. The protection and indemnity insurance is maintained through a protection and indemnity association, and as a member of the association, the Partnership may be required to pay amounts above budgeted premiums if the member claims exceed association reserves, subject to certain reinsured amounts. If the Partnership experiences multiple claims each with individual deductibles, losses due to risks that are not insured or claims for insured risks that are not paid, it could have a material adverse effect on the Partnership’s results of operations and financial condition. |
Earnings per Unit and Cash Dist
Earnings per Unit and Cash Distributions | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Unit and Cash Distributions | 14) Earnings per Unit and Cash Distributions The calculations of basic and diluted earnings per unit (1) are presented below: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands, except per unit data) 2018 2017 2018 2017 Net income $ 21,681 $ 16,915 $ 52,405 $ 28,344 Less: Series A Preferred unitholders’ interest in net income 1,800 1,009 3,600 1,653 Net income attributable to the unitholders of KNOT Offshore Partners LP 19,881 15,906 48,805 26,691 Less: Distributions (2) 18,034 16,379 36,068 32,758 Under (over) distributed earnings 1,847 (473 ) 12,737 (6,067 ) Under (over) distributed earnings attributable to: Common unitholders (3) 1,813 (464 ) 12,502 (5,955 ) General Partner 34 (9 ) 235 (112 ) Weighted average units outstanding (basic) (in thousands): Common units 32,694 29,694 32,694 29,570 General Partner units 615 559 615 559 Weighted average units outstanding (diluted) (in thousands): Common units 36,355 31,798 36,360 31,296 General Partner units 615 559 615 559 Earnings per unit (basic) Common units $ 0.597 $ 0.526 $ 1.465 $ 0.886 General Partner units 0.597 0.526 1.465 0.882 Earnings per unit (diluted): Common units $ 0.585 $ 0.522 $ 1.415 $ 0.886 General Partner units 0.597 0.526 1.465 0.882 Cash distributions declared and paid in the period per unit (4) 0.520 0.520 1.040 1.040 Subsequent event: Cash distributions Declared and paid per unit relating to the period (5) 0.520 0.520 1.040 0.520 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership Agreement. (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the three months ended June 30, 2018 and 2017 of $0.7 million and of $0.6 million, respectively, and for the six months ended June 30, 2018 and 2017 of $1.4 million and of $1.3 million, respectively. (3) This includes the net income attributable to the IDR holder. The net income attributable to IDRs for the three months ended June 30, 2018 and 2017 was $0.7 million and $0.6 million, respectively, and for the six months ended June 30, 2018 and 2017 was $1.4 million and $1.3 million, respectively. (4) Refers to cash distributions declared and paid during the period. (5) Refers to cash distributions declared and paid subsequent to the period end. As of June 30, 2018, the Partnership had 32,694,094 common units outstanding, of which 24,036,226 are held by the public and 8,567,500 are held by KNOT. In addition, KNOT, through its ownership of the General Partner, held 615,117 general partner units and 90,368 common units. The Partnership also has 3,750,000 Series A Convertible Preferred Units (the “Series A Preferred Units”) outstanding. Earnings per unit – basic is determined by dividing net income, after deducting the amount of net income attributable to the Series A Preferred Units and the distribution paid or to be made in relation to the period, by the weighted-average number of units outstanding during the applicable period. The computation of limited partners’ interest in net income per common unit – diluted assumes the issuance of common units for all potentially dilutive securities consisting of the Series A Preferred Units. Consequently, the net income attributable to limited partners’ interest is exclusive of any distributions on the Series A Preferred Units. In addition, the weighted average number of common units outstanding has been increased assuming the Series A Preferred Units have been converted to common units using the if-converted The General Partner’s and common unitholders’ interest in net income was calculated as if all net income was distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income. Rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter less the amount of cash reserves established by the Board to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditures, anticipated credit needs and capital requirements and any accumulated distributions on, or redemptions of, the Series A Preferred Units. In addition, KNOT, as the initial holder of all IDRs, has the right, at the time when it has received incentive distributions at the highest level to which it is entitled (48.0% for each of the prior four consecutive fiscal quarters), to reset the initial cash target distribution levels at higher levels based on the distribution at the time of the exercise of the reset election. Unlike available cash, net income is affected by non-cash |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 15) Acquisitions In March 2017, June 2017, September 2017, December 2017 and March 2018, the Partnership acquired from KNOT equity interests in certain subsidiaries which own and operate the Tordis Knutsen Vigdis Knutsen Lena Knutsen Brasil Knutsen Anna Knutsen, The Board and the Conflicts Committee approved the purchase price for each transaction. The Conflicts Committee retained a financial advisor to assist with its evaluation of each of the transactions. The details of each transaction are as follows: (U.S. Dollars in thousands) Final Anna Knutsen March 1, 2018 Final Brasil Knutsen December 15, 2017 Final Lena Knutsen September 30, 2017 Final Vigdis Knutsen June 1, 2017 Final Tordis Knutsen March 1, 2017 Purchase consideration (1) $ 19,913 $ 5,764 $ 33,235 $ 31,759 $ 32,983 Less: Fair value of net assets acquired: Vessels and equipment (2) 120,274 96,000 142,457 145,772 145,754 Intangibles: Above market time charter — — — 1,458 1,468 Cash 4,537 5,217 470 3,438 609 Inventories 257 146 243 190 129 Derivative assets 1,839 — 1,729 226 1,377 Others current assets 111 125 193 128 1,348 Amounts due from related parties 520 2 23,599 18,374 20,834 Long-term debt (84,217 ) (59,000 ) (111,068 ) (114,411 ) (114,411 ) Long-term debt from related parties (22,535 ) — (22,706 ) (22,703 ) (22,960 ) Deferred debt issuance 1,228 618 867 928 795 Trade accounts payable (971 ) (154 ) (256 ) (187 ) (106 ) Accrued expenses (1,013 ) (1,185 ) (224 ) (1,082 ) (503 ) Prepaid charter and deferred revenue — — (1,758 ) — — Amounts due to related parties (117 ) (36,005 ) (186 ) (372 ) (1,351 ) Income tax payable — — (125 ) — — Subtotal 19,913 5,764 33,235 # 31,759 32,983 Difference between the purchase price and fair value of net assets acquired — — — — — Goodwill — — — — — Difference between the purchase price and allocated values $ — $ — $ — $ — $ — (1) The purchase price is comprised of the following: (U.S. Dollars in thousands) Final Anna Knutsen March 1, 2018 Final Brasil Knutsen December 15, 2017 Final Lena Knutsen September 30, 2017 Final Vigdis Knutsen June 1, 2017 Final Tordis Knutsen March 1, 2017 Cash consideration paid to KNOT (from KNOT) $ 14,637 $ 2,383 $ 33,343 $ 28,109 $ 31,242 Purchase price adjustments 5,276 3,381 (108 ) 3,650 1,741 Seller’s credit — — — — — Seller’s loan — — — — — Purchase price $ 19,913 $ 5,764 $ 33,235 $ 31,759 $ 32,983 (2) Vessel and equipment includes allocation to drydocking for the following vessels (in thousands): Anna Knutsen Brasil Knutsen Lena Knutsen Vigdis Knutsen Tordis Knutsen Anna Knutsen On March 1, 2018, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 30 AS (“KNOT 30”), the company that owns and operates the Anna Knutsen. Following of adoption of ASU 2017-01, Business Combinations: Clarifying the Definition of a Business, Brasil Knutsen On December 15, 2017, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 32 AS (“KNOT 32”), the company that owns and operates the Brasil Knutsen. Brasil Knutsen Revenue and profit contributions The Brasil Knutsen Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Brasil Knutsen Brasil Knutsen Brasil Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 223,220 Net income 64,034 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors. Lena Knutsen On September 30, 2017, KNOT Shuttle Tankers AS acquired KNOT’s 100% interest in KNOT Shuttle Tankers 26 AS (“KNOT 26”), the company that owns and operates the Lena Knutsen Lena Knutsen Revenue and profit contributions The Lena Knutsen Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Lena Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 220,904 Net income 62,999 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors as if the acquisition had taken place from the date of delivery of the vessel. Vigdis Knutsen On June 1, 2017, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 25 AS (“KNOT 25”), the company that owns and operates the Vigdis Knutsen Vigdis Knutsen Revenue and profit contributions The Vigdis Knutsen Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Vigdis Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 222,354 Net income 63,225 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors and amortization of the above market time charter as if the acquisition had taken place from the date of delivery of the vessel. Tordis Knutsen On March 1, 2017, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 24 AS (“KNOT 24”), the company that owns and operates the Tordis Knutsen Tordis Knutsen Revenue and profit contributions The Tordis Knutsen Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Tordis Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 221,198 Net income 66,584 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors and amortization of the above market time charter as if the acquisition had taken place from the date of delivery of the vessel. |
Equity Offerings and Sale of Se
Equity Offerings and Sale of Series A Preferred Units | 6 Months Ended |
Jun. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
Equity Offerings and Sale of Series A Preferred Units | 16) Equity Offerings and Sale of Series A Preferred Units Equity Offerings (U.S. Dollars in thousands) January 2017 Offering November 2017 Offering Total 2017 Offering Gross proceeds received $ 56,125 $ 66,936 (1) $ 123,061 Less: Underwriters’ discount 925 660 1,585 Less: Offering expenses 300 230 530 Net proceeds received $ 54,900 $ 66,046 $ 120,946 (1) Includes the General Partner’s 1.85% proportional capital contribution. On November 9, 2017, the Partnership sold 3,000,000 common units in a public offering. In connection with the offering, the General Partner contributed a total of $1.2 million in order to maintain its 1.85% general partner interest in the Partnership. The total net proceeds from the offering and the related General Partner’s contribution were $66.0 million. The Partnership used the net proceeds from the offering to fund the cash portion of the purchase price of the Brasil Knutsen On January 10, 2017, the Partnership sold 2,500,000 common units in a public offering. The Partnership’s total net proceeds from the offering were $54.9 million. The Partnership used the net proceeds from the offering to fund the cash portion of the purchase price of the Tordis Knutsen Sale of Series A Preferred units (U.S. Dollars in thousands) February 2017 Series A Preferred Units June 2017 Series A Preferred Units Total Series A Preferred Units Gross proceeds received $ 50,000 $ 40,000 $ 90,000 Less: Fee 1,000 1,000 2,000 Less: Expenses 386 150 536 Net proceeds received $ 48,614 $ 38,850 $ 87,464 On February 2, 2017, the Partnership issued and sold in a private placement 2,083,333 Series A Preferred Units at a price of $24.00 per unit. After deducting fees and expenses, the net proceeds from the sale were $48.6 million. The Partnership used the net proceeds from the sale to fund the cash portion of the purchase price of the Tordis Knutsen On June 30, 2017, the Partnership (i) issued and sold in a second private placement 1,666,667 additional Series A Preferred Units at a price of $24.00 per unit and (ii) amended and restated its Partnership Agreement to make certain amendments to the terms of the Series A Preferred Units, including the 2,083,333 Series A Preferred Units issued on February 2, 2017. After deducting estimated fees and expenses, the net proceeds of the sale were $38.9 million. The Partnership used $30.0 million of the net proceeds to repay the revolving credit facility, which was drawn in connection with acquisition of the Vigdis Knutsen. |
Unit Activity
Unit Activity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Unit Activity | 17) Unit Activity The following table shows the movement in the number of common units, general partner units and Series A Preferred Units from December 31, 2016 until June 30, 2018. (in units) Common Units General Partner Units Convertible Preferred Units December 31, 2016 27,194,094 558,674 — January 6, 2017: Public offering 2,500,000 — — February 2, 2017: Sale of Series A Preferred Units — — 2,083,333 June 30, 2017: Sale of Series A Preferred Units — — 1,666,667 November 9, 2017: Public offering 3,000,000 56,443 — December 31, 2017 32,694,094 615,117 3,750,000 June 30, 2018 32,694,094 615,117 3,750,000 On August 12, 2015, the Board authorized a program for the Partnership to repurchase up to 666,667 of its common units. The board of directors of the General Partner concurrently authorized the General Partner to purchase up to 333,333 common units of the Partnership. On August 10, 2016, the Board and the board of directors of the General Partner authorized an extension of the common unit purchase program to August 31, 2017, and on August 9, 2017, the Board and the board of directors of the General Partner authorized a further extension of the program to August 31, 2018. No common units were purchased by the Partnership or the General Partner in 2017 or to date in 2018. All purchases are made pursuant to a single program and are allocated approximately two-thirds one-third |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18) Subsequent Events The Partnership has evaluated subsequent events from the balance sheet date through September 6, 2018, the date at which the unaudited condensed consolidated interim financial statements were available to be issued, and determined that there are no other items to disclose, except as follows: On July 13, 2018, a subsidiary of Royal Dutch Shell (“Shell”) exercised its option to extend the time charter of the Windsor Knutsen On August 3, 2018, the Partnership entered into amended time charter with Eni Trading & Shipping S.p.A. (“Eni”), extending the duration of the Hilda Knutsen one-year On August 14, 2018, the Partnership paid a quarterly cash distribution of $0.52 per common unit with respect to the quarter ended June 30, 2018 to all common unitholders of record on August 1, 2018. On August 14, 2018, the Partnership also paid a cash distribution to holders of Series A Preferred Units with respect to the quarter ended June 30, 2018 in an aggregate amount equal to $1.8 million. On September 4, 2018 the Partnership’s subsidiaries which own the Windsor Knutsen Bodil Knutsen Fortaleza Knutsen Recife Knutsen Carmen Knutsen Ingrid Knutsen |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Preparation | (a) Basis of Preparation The accompanying unaudited condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of management of the Partnership, all adjustments considered necessary for a fair presentation, which are of normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The unaudited condensed consolidated financial statements do not include all the disclosures and information required for a complete set of annual financial statements; and, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2017, which are included in the Partnership’s Annual Report on Form 20-F 20-F”). |
Significant accounting policies | (b) Significant Accounting Policies Except as described below under (c) Recent Accounting Pronouncements Adoption of new accounting standards 20-F. |
Recent Accounting Pronouncements | (c) Recent Accounting Pronouncements Adoption of new accounting standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations: Clarifying the Definition of a Business. Anna Knutsen In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) 2014-09 Accounting pronouncements to be adopted In February 2016, the FASB issued revised guidance for leasing. The objective is to establish the principles that lessors and lessees shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The standard is effective for annual periods beginning after December 15, 2018. The Partnership is currently assessing the impact the adoption of this standard will have on the consolidated financial statements. Based upon preliminary assessments performed to date, the Partnership does not expect adoption of the standard to have material effects on the accounting for existing leases in the consolidated financial statements. Any other accounting pronouncements yet to be adopted by the Partnership are consistent with those disclosed in the Partnership’s audited consolidated financial statements for the year ended December 31, 2017. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Percentage of Combined Revenues for Customers | The following table presents revenues and percentages of consolidated revenues for customers that accounted for more than 10% of the Partnership’s consolidated revenues during the three and six months ended June 30, 2018 and 2017. All of these customers are subsidiaries of major international oil companies. Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Eni Trading and Shipping S.p.A. $ 11,555 17% $ 11,345 22% $ 22,936 17% $ 22,905 24% Fronape International Company, a subsidiary of Petrobras Transporte S.A. 11,248 16% 11,249 22% 22,378 16% 22,378 23% Equinor ASA 5,850 8% 5,778 11% 11,582 8% 11,459 12% Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 9,283 13% 7,094 14% 18,222 13% 14,396 15% Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 20,399 29% 11,675 23% 40,572 30% 15,401 16% Standard Marine Tønsberg AS, a Norwegian subsidiary of ExxonMobil 4,448 6% 4,396 9% 8,847 6% 8,745 9% Galp Sinopec Brasil Services B.V. 6,438 9% — 0% 12,071 9% — 0% |
Other Finance Expenses (Tables)
Other Finance Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift, Interest [Abstract] | |
Summary of Reconciliation of Total Interest Cost and Interest Expense | The following table presents a reconciliation of total interest cost and interest expense as reported in the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Interest expense $ 11,830 $ 6,846 $ 21,848 $ 12,711 Amortization of debt issuance cost and fair value of debt assumed 696 406 1,271 755 Total interest cost $ 12,526 $ 7,252 $ 23,119 $ 13,466 |
Summary of Other Finance Expense | The following table presents the other finance expense for three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Bank fees, charges $ 151 $ 119 $ 241 $ 191 Guarantee costs 140 158 282 318 Commitment fees (3 ) 51 103 121 Total other finance expense $ 288 $ 328 $ 626 $ 630 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Realized and Unrealized Gains and Losses Recognized in Earnings | The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Realized gain (loss): Interest rate swap contracts $ 57 $ (938 ) $ (247 ) $ (1,607 ) Foreign exchange forward contracts 134 (97 ) 1,239 (166 ) Total realized gain (loss): 191 (1,035 ) 992 (1,773 ) Unrealized gain (loss): Interest rate swap contracts 2,995 (1,334 ) 11,942 (275 ) Foreign exchange forward contracts (1,218 ) 833 (990 ) 1,031 Total unrealized gain (loss): 1,777 (501 ) 10,952 756 Total realized and unrealized gain (loss) on derivative instruments: $ 1,968 $ (1,536 ) $ 11,944 $ (1,017 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments | The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of June 30, 2018 and December 31, 2017. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. June 30, 2018 December 31, 2017 (U.S. Dollars in thousands) Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents $ 45,085 $ 45,085 $ 46,104 $ 46,104 Current derivative assets: Interest rate swap contracts 3,693 3,693 950 950 Foreign exchange forward contracts 182 182 629 629 Non-current Interest rate swap contracts 19,765 19,765 9,850 9,850 Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3 3 961 961 Foreign exchange forward contracts 258 258 17 17 Non-current Interest rate swap contracts — — 164 164 Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,117,045 1,115,285 1,033,330 1,032,484 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of June 30, 2018 and December 31, 2017: Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) Carrying Value June 30, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 45,085 $ 45,085 $ — $ — Current derivative assets: Interest rate swap contracts 3,693 — 3,693 — Foreign exchange forward contracts 182 — 182 — Non-current Interest rate swap contracts 19,765 — 19,765 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3 — 3 — Foreign exchange forward contracts 258 — 258 — Non-current Interest rate swap contracts — — — — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,117,045 — 1,115,285 — Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) Carrying Value December 31, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 46,104 $ 46,104 $ — $ — Current derivative assets: Interest rate swap contracts 950 — 950 — Foreign exchange forward contracts 629 — 629 — Non-current Interest rate swap contracts 9,850 — 9,850 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 961 — 961 — Foreign exchange forward contracts 17 — 17 — Non-current Interest rate swap contracts 164 — 164 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,033,330 — 1,032,484 — |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations | Significant components of current and deferred income tax expense attributable to income from continuing operations for the three and six months ended June 30, 2018 and 2017 as follows: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Income before income taxes $ 21,684 $ 16,918 $ 52,411 $ 28,350 Income tax (expense) (3 ) (3 ) (6 ) (6 ) Effective tax rate $ 0 % $ 0 % $ 0 % $ 0 % |
Vessels and Equipment (Tables)
Vessels and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | (U.S. Dollars in thousands) Vessels & equipment Accumulated depreciation Net Vessels Vessels, December 31, 2016 $ 1,468,913 $ (212,024 ) $ 1,256,889 Additions 522,369 — 522,369 Drydock costs 15,348 — 15,348 Disposals (3,289 ) 3,289 — Depreciation for the year — (71,583 ) (71,583 ) Vessels, December 31, 2017 $ 2,003,341 $ (280,318 ) $ 1,723,023 Additions 117,955 — 117,955 Drydock costs 6,132 — 6,132 Disposals (260 ) 260 — Depreciation for the period — (43,906 ) (43,906 ) Vessels, June 30, 2018 $ 2,127,168 $ (323,964 ) $ 1,803,204 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | (U.S. Dollars in thousands) Above market time charter Tordis Knutsen Above market time charter Vigdis Knutsen Total Intangibles, December 31, 2016 $ — $ — $ — Additions 1,468 1,458 2,926 Amortization for the year (253 ) (176 ) (429 ) Intangibles, December 31, 2017 $ 1,215 $ 1,282 $ 2,497 Additions — — — Amortization for the period (152 ) (150 ) (302 ) Intangibles, June 30, 2018 $ 1,063 $ 1,132 $ 2,195 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of June 30, 2018 and December 31, 2017, the Partnership had the following debt amounts outstanding: (U.S. Dollars in thousands) Vessel June 30, 2018 December 31, $220 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen $ 157,142 $ 165,000 $35 million revolving credit facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen 22,000 — Fortaleza and Recife loan facility Fortaleza Knutsen & Recife Knutsen 105,000 109,375 Hilda loan facility Hilda Knutsen 93,846 96,923 $117 million loan facility Torill Knutsen — 73,177 Torill loan facility Torill Knutsen 98,333 — $172.5 million loan facility Dan Cisne, Dan Sabia 86,739 91,339 Ingrid loan facility Ingrid Knutsen 57,802 61,085 Raquel loan facility Raquel Knutsen 65,799 68,414 Tordis loan facility Tordis Knutsen 88,521 91,051 Vigdis loan facility Vigdis Knutsen 89,786 92,316 Lena loan facility Lena Knutsen 88,200 90,650 Brasil loan facility Brasil Knutsen 66,485 69,000 Anna loan facility Anna Knutsen 72,392 $25 million revolving credit facility 25,000 25,000 Total long-term debt 1,117,045 1,033,330 Less: current installments 82,823 95,176 Less: unamortized deferred loan issuance costs 2,617 2,191 Current portion of long-term debt 80,206 92,985 Amounts due after one year 1,034,222 938,154 Less: unamortized deferred loan issuance costs 5,169 4,524 Long-term debt, less current installments and unamortized deferred loan issuance costs $ 1,029,053 $ 933,630 |
Summary of Partnership's Outstanding Debt Repayable | The Partnership’s outstanding debt of $1,117.0 million as of June 30, 2018 is repayable as follows: (U.S. Dollars in thousands) Period repayment Balloon Remainder of 2018 (1) $ 41,362 $ 18,427 2019 (2) 71,903 284,678 2020 61,083 — 2021 61,683 70,811 2022 46,347 236,509 2023 and thereafter 62,341 161,901 Total $ 344,719 $ 772,326 (1) Although $18.4 million of the $77.5 million loan facility financing Ingrid Knutsen (2) Although $141.4 million of the $220 million loan facility and $22 million of the $35 million revolving credit facility financing Windsor Knutsen, Carmen Knutsen Bodil Knutsen Fortaleza Knutsen Recife Knutsen |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Costs and Expenses | Net expenses (income) from related parties included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Statements of operations: Other income: Guarantee income from KNOT (1) $ 94 $ 593 $ 749 $ 687 Operating expenses: Technical and operational management fee from KNOT Management to Vessels (2) 1,509 1,079 3,019 2,028 General and administrative expenses: Administration fee from KNOT Management (3) 449 430 812 783 Administration fee from KOAS (3) 148 111 290 223 Administration fee from KOAS UK (3) 30 31 60 62 Administration and management fee from KNOT (4) 41 52 80 94 Finance income (expense): Interest expense charged from KNOT (5) — — — 52 Total $ 2,083 $ 1,110 $ 3,512 $ 2,555 (U.S. Dollars in thousands) At June 30, At December 31, 2017 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (6) $ 128 $ 89 Drydocking supervision fee from KOAS (6) — 8 Total $ 128 $ 97 (1) Guarantee income from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen Vigdis Knutsen ship-to-ship off-hire Vigdis Knutsen (2) Technical and operational management fee from KNOT Management to Vessels 24-hour (3) Administration fee from KNOT Management and Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. (“KOAS UK”) (4) Administration and management fee from KNOT: (5) Interest expense charged from KNOT: (6) Drydocking supervision fee from KNOT and KOAS |
Schedule of Dues Payables to Related Party | Three Months Ended Six Months Ended (U.S. Dollars in thousands) 2018 2017 2018 2017 Statements of operations: Other income: Guarantee income from KNOT (1) $ 94 $ 593 $ 749 $ 687 Operating expenses: Technical and operational management fee from KNOT Management to Vessels (2) 1,509 1,079 3,019 2,028 General and administrative expenses: Administration fee from KNOT Management (3) 449 430 812 783 Administration fee from KOAS (3) 148 111 290 223 Administration fee from KOAS UK (3) 30 31 60 62 Administration and management fee from KNOT (4) 41 52 80 94 Finance income (expense): Interest expense charged from KNOT (5) — — — 52 Total $ 2,083 $ 1,110 $ 3,512 $ 2,555 (U.S. Dollars in thousands) At June 30, At December 31, 2017 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (6) $ 128 $ 89 Drydocking supervision fee from KOAS (6) — 8 Total $ 128 $ 97 |
Summary of Amounts Due from (to) Related Parties | Balances with related parties consisted of the following: (U.S. Dollars in thousands) At June 30, At December 31, 2017 Balance Sheet: Trading balances due from KOAS $ 232 $ 24 Trading balances due from KNOT and affiliates 1,149 547 Amount due from related parties $ 1,381 $ 571 Trading balances due to KOAS $ 354 $ 898 Trading balances due to KNOT and affiliates 1,412 4,552 Amount due to related parties $ 1,766 $ 5,450 |
Schedule of Trade Accounts Payables to Related Parties | Trade accounts payables to related parties are included in total trade accounts payables in the balance sheet. The balances to related parties consisted of the following: (U.S. Dollars in thousands) At June 30, At December 31, 2017 Balance Sheet: Trading balances due to KOAS $ 660 $ 864 Trading balances due to KNOT and affiliates 624 548 Trade accounts payables to related parties $ 1,284 $ 1,412 |
Earnings per Unit and Cash Di35
Earnings per Unit and Cash Distributions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted Earnings per Unit | The calculations of basic and diluted earnings per unit (1) are presented below: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands, except per unit data) 2018 2017 2018 2017 Net income $ 21,681 $ 16,915 $ 52,405 $ 28,344 Less: Series A Preferred unitholders’ interest in net income 1,800 1,009 3,600 1,653 Net income attributable to the unitholders of KNOT Offshore Partners LP 19,881 15,906 48,805 26,691 Less: Distributions (2) 18,034 16,379 36,068 32,758 Under (over) distributed earnings 1,847 (473 ) 12,737 (6,067 ) Under (over) distributed earnings attributable to: Common unitholders (3) 1,813 (464 ) 12,502 (5,955 ) General Partner 34 (9 ) 235 (112 ) Weighted average units outstanding (basic) (in thousands): Common units 32,694 29,694 32,694 29,570 General Partner units 615 559 615 559 Weighted average units outstanding (diluted) (in thousands): Common units 36,355 31,798 36,360 31,296 General Partner units 615 559 615 559 Earnings per unit (basic) Common units $ 0.597 $ 0.526 $ 1.465 $ 0.886 General Partner units 0.597 0.526 1.465 0.882 Earnings per unit (diluted): Common units $ 0.585 $ 0.522 $ 1.415 $ 0.886 General Partner units 0.597 0.526 1.465 0.882 Cash distributions declared and paid in the period per unit (4) 0.520 0.520 1.040 1.040 Subsequent event: Cash distributions Declared and paid per unit relating to the period (5) 0.520 0.520 1.040 0.520 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership Agreement. (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the three months ended June 30, 2018 and 2017 of $0.7 million and of $0.6 million, respectively, and for the six months ended June 30, 2018 and 2017 of $1.4 million and of $1.3 million, respectively. (3) This includes the net income attributable to the IDR holder. The net income attributable to IDRs for the three months ended June 30, 2018 and 2017 was $0.7 million and $0.6 million, respectively, and for the six months ended June 30, 2018 and 2017 was $1.4 million and $1.3 million, respectively. (4) Refers to cash distributions declared and paid during the period. (5) Refers to cash distributions declared and paid subsequent to the period end. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Purchase Price of Each Transaction | The Board and the Conflicts Committee approved the purchase price for each transaction. The Conflicts Committee retained a financial advisor to assist with its evaluation of each of the transactions. The details of each transaction are as follows: (U.S. Dollars in thousands) Final Anna Knutsen March 1, 2018 Final Brasil Knutsen December 15, 2017 Final Lena Knutsen September 30, 2017 Final Vigdis Knutsen June 1, 2017 Final Tordis Knutsen March 1, 2017 Purchase consideration (1) $ 19,913 $ 5,764 $ 33,235 $ 31,759 $ 32,983 Less: Fair value of net assets acquired: Vessels and equipment (2) 120,274 96,000 142,457 145,772 145,754 Intangibles: Above market time charter — — — 1,458 1,468 Cash 4,537 5,217 470 3,438 609 Inventories 257 146 243 190 129 Derivative assets 1,839 — 1,729 226 1,377 Others current assets 111 125 193 128 1,348 Amounts due from related parties 520 2 23,599 18,374 20,834 Long-term debt (84,217 ) (59,000 ) (111,068 ) (114,411 ) (114,411 ) Long-term debt from related parties (22,535 ) — (22,706 ) (22,703 ) (22,960 ) Deferred debt issuance 1,228 618 867 928 795 Trade accounts payable (971 ) (154 ) (256 ) (187 ) (106 ) Accrued expenses (1,013 ) (1,185 ) (224 ) (1,082 ) (503 ) Prepaid charter and deferred revenue — — (1,758 ) — — Amounts due to related parties (117 ) (36,005 ) (186 ) (372 ) (1,351 ) Income tax payable — — (125 ) — — Subtotal 19,913 5,764 33,235 # 31,759 32,983 Difference between the purchase price and fair value of net assets acquired — — — — — Goodwill — — — — — Difference between the purchase price and allocated values $ — $ — $ — $ — $ — (1) The purchase price is comprised of the following: (U.S. Dollars in thousands) Final Anna Knutsen March 1, 2018 Final Brasil Knutsen December 15, 2017 Final Lena Knutsen September 30, 2017 Final Vigdis Knutsen June 1, 2017 Final Tordis Knutsen March 1, 2017 Cash consideration paid to KNOT (from KNOT) $ 14,637 $ 2,383 $ 33,343 $ 28,109 $ 31,242 Purchase price adjustments 5,276 3,381 (108 ) 3,650 1,741 Seller’s credit — — — — — Seller’s loan — — — — — Purchase price $ 19,913 $ 5,764 $ 33,235 $ 31,759 $ 32,983 (2) Vessel and equipment includes allocation to drydocking for the following vessels (in thousands): Anna Knutsen Brasil Knutsen Lena Knutsen Vigdis Knutsen Tordis Knutsen |
Brasil Knutsen [Member] | |
Schedule of Summarized Consolidated Pro Forma Financial Information | The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Brasil Knutsen Brasil Knutsen Brasil Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 223,220 Net income 64,034 |
Lena Knutsen [Member] | |
Schedule of Summarized Consolidated Pro Forma Financial Information | The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Lena Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 220,904 Net income 62,999 |
Vigdis Knutsen [Member] | |
Schedule of Summarized Consolidated Pro Forma Financial Information | The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Vigdis Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 222,354 Net income 63,225 |
Tordis Knutsen [Member] | |
Schedule of Summarized Consolidated Pro Forma Financial Information | The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Tordis Knutsen (U.S. Dollars in thousands) Year Ended Revenue $ 221,198 Net income 66,584 |
Equity Offerings and Sale of 37
Equity Offerings and Sale of Series A Preferred Units (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Equity Offerings | Equity Offerings (U.S. Dollars in thousands) January 2017 Offering November 2017 Offering Total 2017 Offering Gross proceeds received $ 56,125 $ 66,936 (1) $ 123,061 Less: Underwriters’ discount 925 660 1,585 Less: Offering expenses 300 230 530 Net proceeds received $ 54,900 $ 66,046 $ 120,946 (1) Includes the General Partner’s 1.85% proportional capital contribution. |
Schedule of Sale of Series A Preferred Units | Sale of Series A Preferred units (U.S. Dollars in thousands) February 2017 Series A Preferred Units June 2017 Series A Preferred Units Total Series A Preferred Units Gross proceeds received $ 50,000 $ 40,000 $ 90,000 Less: Fee 1,000 1,000 2,000 Less: Expenses 386 150 536 Net proceeds received $ 48,614 $ 38,850 $ 87,464 |
Unit Activity (Tables)
Unit Activity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Movement in Number of Common Units, and General Partner Units and Series A Preferred Units | The following table shows the movement in the number of common units, general partner units and Series A Preferred Units from December 31, 2016 until June 30, 2018. (in units) Common Units General Partner Units Convertible Preferred Units December 31, 2016 27,194,094 558,674 — January 6, 2017: Public offering 2,500,000 — — February 2, 2017: Sale of Series A Preferred Units — — 2,083,333 June 30, 2017: Sale of Series A Preferred Units — — 1,666,667 November 9, 2017: Public offering 3,000,000 56,443 — December 31, 2017 32,694,094 615,117 3,750,000 June 30, 2018 32,694,094 615,117 3,750,000 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2018TankerVessel | Jun. 30, 2017Vessel | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Number of shuttle tankers to be acquired | Tanker | 4 | |
Initial public offering completion date | 2013-04 | |
Percentage of ownership interests to be acquired by Partnership in four shuttle tankers | 100.00% | |
Number of operating vessels | Vessel | 16 | 13 |
Windsor Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,019 | |
Guarantee payment term of charter | 5 years | |
Bodil Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,019 | |
Time charterer options extension year | 2,024 | |
Guarantee payment term of charter | 5 years | |
Recife Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Bareboat charters expiration year | 2,023 | |
Fortaleza Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Bareboat charters expiration year | 2,023 | |
Carmen Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,023 | |
Time charterer options extension year | 2,026 | |
Hilda Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,022 | |
Time charterer options extension year | 2,025 | |
Torill Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,018 | |
Time charterer options extension year | 2,023 | |
Dan Cisne [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Bareboat charters expiration year | 2,023 | |
Dan Sabia [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Bareboat charters expiration year | 2,024 | |
Ingrid Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,024 | |
Time charterer options extension year | 2,029 | |
Raquel Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,025 | |
Time charterer options extension year | 2,030 | |
Tordis Facility [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,022 | |
Time charterer options extension year | 2,032 | |
Vigdis Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,022 | |
Time charterer options extension year | 2,032 | |
Lena Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,022 | |
Time charterer options extension year | 2,032 | |
Brasil Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,022 | |
Time charterer options extension year | 2,028 | |
Anna Knutsen [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Time charters expiration year | 2,022 | |
Time charterer options extension year | 2,028 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018VesselTimesBoatsSegment | Jun. 30, 2017VesselTimesBoats | |
Revenue, Major Customer [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Number of time charters | Times | 12 | 9 | ||
Number of bareboat charters | Boats | 4 | 4 | ||
Number of vessels | Vessel | 16 | 13 | ||
Minimum [Member] | Revenues [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Benchmark percentage of revenues and combined revenues concentration | 10.00% | 10.00% | 10.00% | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Revenues and Percentage of Combined Revenues for Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 69,765 | $ 54,406 | $ 137,808 | $ 99,397 |
Fronape International Company, a Subsidiary of Petrobras Transporte S.A. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 11,248 | 11,249 | 22,378 | 22,378 |
Eni Trading and Shipping S.p.A. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 11,555 | 11,345 | 22,936 | 22,905 |
Equinor ASA [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 5,850 | 5,778 | 11,582 | 11,459 |
Repsol Sinopec Brasil, S.A., a Subsidiary of Repsol Sinopec Brasil, B.V. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 9,283 | 7,094 | 18,222 | 14,396 |
Brazil Shipping I Limited, a Subsidiary of Royal Dutch Shell [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 20,399 | 11,675 | 40,572 | 15,401 |
Standard Marine Tonsberg, a Subsidiary of ExxonMobil [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 4,448 | $ 4,396 | 8,847 | $ 8,745 |
Galp Sinopec Brasil Services B.V. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 6,438 | $ 12,071 | ||
Customer Concentration Risk [Member] | Revenues [Member] | Fronape International Company, a Subsidiary of Petrobras Transporte S.A. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of combined revenues for customers | 16.00% | 22.00% | 16.00% | 23.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Eni Trading and Shipping S.p.A. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of combined revenues for customers | 17.00% | 22.00% | 17.00% | 24.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Equinor ASA [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of combined revenues for customers | 8.00% | 11.00% | 8.00% | 12.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Repsol Sinopec Brasil, S.A., a Subsidiary of Repsol Sinopec Brasil, B.V. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of combined revenues for customers | 13.00% | 14.00% | 13.00% | 15.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Brazil Shipping I Limited, a Subsidiary of Royal Dutch Shell [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of combined revenues for customers | 29.00% | 23.00% | 30.00% | 16.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Standard Marine Tonsberg, a Subsidiary of ExxonMobil [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of combined revenues for customers | 6.00% | 9.00% | 6.00% | 9.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Galp Sinopec Brasil Services B.V. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of combined revenues for customers | 9.00% | 0.00% | 9.00% | 0.00% |
Insurance Proceeds - Additional
Insurance Proceeds - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | $ 450 | $ 2,276 | $ 450 | $ 3,426 |
Raquel Knutsen [Member] | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | 2,150 | 2,900 | ||
Partnership's loss, description | Under the Partnership’s loss of hire policies, its insurer will pay the Partnership the hire rate agreed in respect of each vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. | |||
Vessel, off-hire period | February 22, 2017 to May 15, 2017 | |||
Raquel Knutsen [Member] | Hull and Machinery [Member] | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | 2,170 | 3,890 | ||
Cost of repairs, vessel operating expenses | $ 100 | $ 100 | ||
Carmen Knutsen [Member] | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | 2,200 | $ 2,200 | ||
Partnership's loss, description | Under its loss of hire insurance policies, the Partnership’s insurer is expected to pay the hire rate agreed in respect of the Carmen Knutsen for each day in excess of 14 deductible days while the vessel was off-hire as a result of the repairs of the controllable pitch propeller. For the three and six months ended June 30, 2018, the Partnership received payments for loss of hire insurance of $2.2 million, which is recorded as a component of total revenues since day rates are recovered under terms of the policy. | |||
Special survey drydocking period | 5 years | |||
Vessel, hire period | January 1, 2018 | |||
Carmen Knutsen [Member] | Hull and Machinery [Member] | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | $ 1,500 | $ 1,500 |
Other Finance Expense - Summary
Other Finance Expense - Summary of Reconciliation of Total Interest Cost and Interest Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Interest expense | $ 11,830 | $ 6,846 | $ 21,848 | $ 12,711 |
Amortization of debt issuance cost and fair value of debt assumed | 696 | 406 | 1,271 | 755 |
Total interest cost | $ 12,526 | $ 7,252 | $ 23,119 | $ 13,466 |
Other Finance Expense - Summa44
Other Finance Expense - Summary of Other Finance Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Bank fees, charges | $ 151 | $ 119 | $ 241 | $ 191 |
Guarantee costs | 140 | 158 | 282 | 318 |
Commitment fees | (3) | 51 | 103 | 121 |
Total other finance expense | $ 288 | $ 328 | $ 626 | $ 630 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) kr in Millions, $ in Millions | Jun. 30, 2018USD ($) | Jun. 30, 2018NOK (kr) | Dec. 31, 2017USD ($) | Dec. 31, 2017NOK (kr) |
Interest Rate Swap Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Weighted average interest rate | 1.82% | 1.82% | ||
Derivative, Notional amount of outstanding obligations | $ 539.5 | $ 650.5 | ||
Carrying amount of derivative liabilities | 23.5 | 9.7 | ||
Foreign Exchange Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional amount of outstanding obligations | kr | kr 202.1 | kr 249.9 | ||
Carrying amount of derivative liabilities | 0.1 | 0.1 | ||
Carrying amount of derivative asset | $ 0.6 | $ 0.6 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Realized and Unrealized Gains and Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized gain (loss) | $ 191 | $ (1,035) | $ 992 | $ (1,773) |
Total unrealized gain (loss) | 1,777 | (501) | 10,952 | 756 |
Total realized gain (loss) | 1,968 | (1,536) | 11,944 | (1,017) |
Interest Rate Swap Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total unrealized gain (loss) | 2,995 | (1,334) | 11,942 | (275) |
Total realized gain (loss) | 57 | (938) | (247) | (1,607) |
Foreign Exchange Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total unrealized gain (loss) | (1,218) | 833 | (990) | 1,031 |
Total realized gain (loss) | $ 134 | $ (97) | $ 1,239 | $ (166) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||||
Cash and cash equivalents | $ 45,085 | $ 46,104 | $ 64,501 | $ 27,664 |
Current derivative assets | 3,875 | 1,579 | ||
Non-current derivative assets | 19,765 | 9,850 | ||
Financial liabilities: | ||||
Current derivative liabilities | 261 | 978 | ||
Non-current derivative liabilities | 164 | |||
Long-term debt, current and non-current | 1,117,045 | 1,033,330 | ||
Carrying Amount [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 45,085 | 46,104 | ||
Financial liabilities: | ||||
Long-term debt, current and non-current | 1,117,045 | 1,033,330 | ||
Carrying Amount [Member] | Interest Rate Swap Contracts [Member] | ||||
Financial assets: | ||||
Current derivative assets | 3,693 | 950 | ||
Non-current derivative assets | 19,765 | 9,850 | ||
Financial liabilities: | ||||
Current derivative liabilities | 3 | 961 | ||
Non-current derivative liabilities | 164 | |||
Carrying Amount [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Financial assets: | ||||
Current derivative assets | 182 | 629 | ||
Financial liabilities: | ||||
Current derivative liabilities | 258 | 17 | ||
Fair Value [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 45,085 | 46,104 | ||
Financial liabilities: | ||||
Long-term debt, current and non-current | 1,115,285 | 1,032,484 | ||
Fair Value [Member] | Interest Rate Swap Contracts [Member] | ||||
Financial assets: | ||||
Current derivative assets | 3,693 | 950 | ||
Non-current derivative assets | 19,765 | 9,850 | ||
Financial liabilities: | ||||
Current derivative liabilities | 3 | 961 | ||
Non-current derivative liabilities | 164 | |||
Fair Value [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Financial assets: | ||||
Current derivative assets | 182 | 629 | ||
Financial liabilities: | ||||
Current derivative liabilities | $ 258 | $ 17 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Deferred debt issuance cost | $ 7,800,000 | $ 6,700,000 |
Restricted cash | 0 | 0 |
Transfer between levels | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Current derivative assets | $ 3,875 | $ 1,579 |
Non-current derivative assets | 19,765 | 9,850 |
Financial liabilities: | ||
Current derivative liabilities | 261 | 978 |
Non-current derivative liabilities | 164 | |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 45,085 | 46,104 |
Financial liabilities: | ||
Long-term debt, current and non-current | 1,117,045 | 1,033,330 |
Foreign Exchange Forward Contracts [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Current derivative assets | 182 | 629 |
Financial liabilities: | ||
Current derivative liabilities | 258 | 17 |
Foreign Exchange Forward Contracts [Member] | Fair Value [Member] | ||
Financial assets: | ||
Current derivative assets | 182 | 629 |
Financial liabilities: | ||
Current derivative liabilities | 258 | 17 |
Interest Rate Swap Contracts [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Current derivative assets | 3,693 | 950 |
Non-current derivative assets | 19,765 | 9,850 |
Financial liabilities: | ||
Current derivative liabilities | 3 | 961 |
Non-current derivative liabilities | 164 | |
Interest Rate Swap Contracts [Member] | Fair Value [Member] | ||
Financial assets: | ||
Current derivative assets | 3,693 | 950 |
Non-current derivative assets | 19,765 | 9,850 |
Financial liabilities: | ||
Current derivative liabilities | 3 | 961 |
Non-current derivative liabilities | 164 | |
Quoted Price in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 45,085 | 46,104 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial liabilities: | ||
Long-term debt, current and non-current | 1,115,285 | 1,032,484 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Forward Contracts [Member] | Fair Value [Member] | ||
Financial assets: | ||
Current derivative assets | 182 | 629 |
Financial liabilities: | ||
Current derivative liabilities | 258 | 17 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap Contracts [Member] | Fair Value [Member] | ||
Financial assets: | ||
Current derivative assets | 3,693 | 950 |
Non-current derivative assets | 19,765 | 9,850 |
Financial liabilities: | ||
Current derivative liabilities | $ 3 | 961 |
Non-current derivative liabilities | $ 164 |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||||||
Entrance tax | $ 3 | |||||||
Entrance tax, annual decline in gain | 20.00% | |||||||
Tax rate | 23.00% | 24.00% | 25.00% | 27.00% | 28.00% | |||
Entrance tax paid, current | $ 0.2 | $ 0.2 | ||||||
Entrance tax payable, non current | $ 0.6 | $ 0.6 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 21,684 | $ 16,918 | $ 52,411 | $ 28,350 |
Income tax (expense) | $ (3) | $ (3) | $ (6) | $ (6) |
Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% |
Vessels and Equipment - Schedul
Vessels and Equipment - Schedule of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation, beginning balance | $ (280,318) | $ (212,024) | $ (212,024) | ||
Accumulated depreciation, disposals for the period | 260 | 3,289 | |||
Depreciation for the period | $ (22,332) | $ (17,372) | (43,906) | (33,125) | (71,583) |
Accumulated depreciation, ending balance | (323,964) | (323,964) | (280,318) | ||
Net vessel, beginning balance | 1,723,023 | 1,256,889 | 1,256,889 | ||
Additions | 117,955 | 522,369 | |||
Drydock costs | 6,132 | 15,348 | |||
Depreciation for the year | (22,332) | $ (17,372) | (43,906) | (33,125) | (71,583) |
Net vessel, ending balance | 1,803,204 | 1,803,204 | 1,723,023 | ||
Vessels & Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Vessel and equipment, beginning balance | 2,003,341 | $ 1,468,913 | 1,468,913 | ||
Additions | 117,955 | 522,369 | |||
Drydock costs | 6,132 | 15,348 | |||
Disposals | (260) | (3,289) | |||
Vessel and equipment, ending balance | $ 2,127,168 | $ 2,127,168 | $ 2,003,341 |
Vessels and Equipment - Additio
Vessels and Equipment - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Book value of assets pledged | $ 1,803 | $ 1,723 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles assets, beginning balance | $ 2,497 | |
Additions | $ 2,926 | |
Amortization for the period | (302) | (429) |
Intangibles assets, ending balance | 2,195 | 2,497 |
Above Market Value Of Time Charter [Member] | Tordis Knutsen [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles assets, beginning balance | 1,215 | |
Additions | 1,468 | |
Amortization for the period | (152) | (253) |
Intangibles assets, ending balance | 1,063 | 1,215 |
Above Market Value Of Time Charter [Member] | Vigdis Knutsen [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles assets, beginning balance | 1,282 | |
Additions | 1,458 | |
Amortization for the period | (150) | (176) |
Intangibles assets, ending balance | $ 1,132 | $ 1,282 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018 | |
Tordis Knutsen [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining term of the contract | 4 years 9 months 18 days |
Vigdis Knutsen [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining term of the contract | 4 years 10 months 25 days |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,117,045 | $ 1,033,330 |
Less: current installments | 82,823 | 95,176 |
Less: unamortized deferred loan issuance costs | 2,617 | 2,191 |
Current portion of long-term debt | 80,206 | 92,985 |
Amounts due after one year | 1,034,222 | 938,154 |
Less: unamortized deferred loan issuance costs | 5,169 | 4,524 |
Long-term debt, less current installments and unamortized deferred loan issuance costs | 1,029,053 | 933,630 |
220 Million Term Loan Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 157,142 | 165,000 |
35 Million Revolving Credit Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 22,000 | |
Fortalez and Recife Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 105,000 | 109,375 |
Hilda Loan Facility [Member] | Hilda Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 93,846 | 96,923 |
117 Million Loan Facility [Member] | Torill Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 73,177 | |
Torill Loan Facility [Member] | Torill Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 98,333 | |
172.5 Million Loan Facility [Member] | Dan Cisne Dan Sabia [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 86,739 | 91,339 |
Ingrid Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 39,400 | |
Ingrid Loan Facility [Member] | Ingrid Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 57,802 | 61,085 |
Raquel Loan Facility [Member] | Raquel Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 65,799 | 68,414 |
Tordis Loan Facility [Member] | Tordis Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 88,521 | 91,051 |
Vigdis Loan Facility [Member] | Vigdis Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 89,786 | 92,316 |
Lena Loan Facility [Member] | Lena Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 88,200 | 90,650 |
Brasil Loan Facility [Member] | Brasil Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 66,485 | 69,000 |
Anna Loan Facility [Member] | Anna Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 72,392 | |
25 Million Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 25,000 | $ 25,000 |
Long-Term Debt - Schedule of 57
Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
25 Million Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 25,000,000 | $ 25,000,000 |
Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | 163,400,000 | |
Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | 220 Million Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | 220,000,000 | 220,000,000 |
Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | 35 Million Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | 35,000,000 | |
Torill Knutsen [Member] | 117 Million Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | 117,000,000 | |
Dan Cisne Dan Sabia [Member] | 172.5 Million Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 172,500,000 | $ 172,500,000 |
Long-Term Debt - Summary of Par
Long-Term Debt - Summary of Partnership's Outstanding Debt Repayable (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Debt Instrument, Redemption [Line Items] | |
Remainder of 2018 | $ 41,362 |
2,019 | 71,903 |
2,020 | 61,083 |
2,021 | 61,683 |
2,022 | 46,347 |
2023 and thereafter | 62,341 |
Total | 344,719 |
Balloon Repayment [Member] | |
Debt Instrument, Redemption [Line Items] | |
Remainder of 2018 | 18,427 |
2,019 | 284,678 |
2,021 | 70,811 |
2,022 | 236,509 |
2023 and thereafter | 161,901 |
Total | $ 772,326 |
Long-Term Debt - Summary of P59
Long-Term Debt - Summary of Partnership's Outstanding Debt Repayable (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument due to mature | $ 41,362,000 |
Debt instrument due to mature | 71,903,000 |
Ingrid Knutsen [Member] | 77.5 Million Loan Facilities [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument due to mature | 77,500,000 |
Debt instrument due to mature | $ 18,400,000 |
Line of credit facility expiration date | Dec. 31, 2018 |
Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument due to mature | $ 163,400,000 |
Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | 220 Million Secured Loan Facility [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument due to mature | 220,000,000 |
Debt instrument due to mature | $ 141,400,000 |
Line of credit facility expiration date | Jun. 30, 2019 |
Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | 35 Million Revolving Credit Facility [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument due to mature | $ 35,000,000 |
Debt instrument due to mature | $ 22,000,000 |
Line of credit facility expiration date | Jun. 30, 2019 |
Fortaleza Knutsen and Recife Knutsen [Member] | Fortalez and Recife Loan Facility [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument due to mature | $ 140,000,000 |
Debt instrument due to mature | $ 96,300,000 |
Line of credit facility expiration date | Jun. 30, 2019 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Mar. 01, 2018 | Jun. 30, 2018 | Jan. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 1,117,045,000 | $ 1,033,330,000 | ||
Partnership's Loan Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt interest rate description | LIBOR plus a fixed margin ranging from 1.8% to 2.5%. | |||
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt fixed margin percentage | 1.80% | |||
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt fixed margin percentage | 2.50% | |||
Ingrid Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 39,400,000 | |||
Long term debt interest rate percentage | 3.85% | |||
Torill Loan Facility [Member] | Torill Knutsen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 98,333,000 | |||
Debt instrument face amount | $ 100,000,000 | |||
Balloon payment to be paid | $ 60,000,000 | |||
Line of credit facility expiration date | Jan. 31, 2024 | |||
Torill Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Torill Knutsen [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt fixed margin percentage | 2.10% | |||
Long term debt interest rate description | LIBOR plus a margin of 2.1% | |||
73.2 Million Loan Facilities [Member] | Torill Knutsen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 73,200,000 | |||
73.2 Million Loan Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Torill Knutsen [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt fixed margin percentage | 2.50% | |||
Long term debt interest rate description | LIBOR plus 2.5% | |||
Anna Loan Facility [Member] | Anna Knutsen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 72,392,000 | |||
Balloon payment to be paid | $ 57,100,000 | |||
Secured credit facility outstanding | $ 74,400,000 | |||
Anna Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Anna Knutsen [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt fixed margin percentage | 2.00% | |||
Long term debt interest rate description | LIBOR plus a margin of 2.0% | |||
Guarantee Commission [Member] | Ingrid Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt interest rate percentage | 2.50% | |||
Bank Facility Rate [Member] | Ingrid Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt interest rate percentage | 2.50% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Costs and Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Total income (expenses) | $ 2,083 | $ 1,110 | $ 3,512 | $ 2,555 |
KNOT [Member] | Guarantee Income [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other income | 94 | 593 | 749 | 687 |
KNOT [Member] | Technical and Operational Management Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses | 1,509 | 1,079 | 3,019 | 2,028 |
KNOT [Member] | General and Administrative Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Administration fee | 449 | 430 | 812 | 783 |
KNOT [Member] | Administration and Management Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Administration fee | 41 | 52 | 80 | 94 |
KNOT [Member] | Interest Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest expense charged from KNOT | 52 | |||
KOAS [Member] | General and Administrative Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Administration fee | 148 | 111 | 290 | 223 |
KOAS UK [Member] | General and Administrative Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Administration fee | $ 30 | $ 31 | $ 60 | $ 62 |
Related Party Transactions - 62
Related Party Transactions - Schedule of Dues Payables to Related Party (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Drydocking supervision fee | $ 128 | $ 97 |
KNOT [Member] | ||
Related Party Transaction [Line Items] | ||
Drydocking supervision fee | $ 128 | 89 |
KOAS [Member] | ||
Related Party Transaction [Line Items] | ||
Drydocking supervision fee | $ 8 |
Related Party Transactions - 63
Related Party Transactions - Schedule of Related Party Costs and Expenses (Parenthetical) (Detail) - d | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||
Number of days vessel went off-hiredue to damage | 6 | |
KOAS [Member] | ||
Related Party Transaction [Line Items] | ||
Margin rate on administration cost | 5.00% | |
KOAS UK [Member] | ||
Related Party Transaction [Line Items] | ||
Margin rate on administration cost | 5.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 6 Months Ended | ||||||
Jun. 30, 2018USD ($) | Mar. 01, 2018 | Dec. 15, 2017 | Sep. 30, 2017 | Jun. 30, 2017d | Jun. 01, 2017 | Mar. 01, 2017 | |
Related Party Transaction [Line Items] | |||||||
Guarantor obligations, related party disclosure | Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charters of each of the Windsor Knutsen and the Bodil Knutsen for a period of five years from the closing date of the IPO | ||||||
Number of days vessel went off-hire due to damage | d | 6 | ||||||
Tordis Knutsen [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest acquired | 100.00% | ||||||
Vigdis Knutsen [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest acquired | 100.00% | ||||||
Lena Knutsen [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest acquired | 100.00% | ||||||
Brasil Knutsen [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest acquired | 100.00% | ||||||
Anna Knutsen [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest acquired | 100.00% | ||||||
Knot Shuttle Tankers 25 As [Member] | Vigdis Knutsen [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest acquired | 100.00% | ||||||
Number of days vessel went off-hire due to damage | d | 6 | ||||||
Omnibus Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Environmental claims indemnification deductible | $ | $ 500,000 | ||||||
Environmental claims indemnification liabilities aggregate cap | $ | $ 5,000,000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Amounts Due from (to) Related Parties (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Balance Sheets: | ||
Amount due from related parties | $ 1,381 | $ 571 |
Amount due to related parties | 1,766 | 5,450 |
KOAS [Member] | ||
Balance Sheets: | ||
Amount due from related parties | 232 | 24 |
Amount due to related parties | 354 | 898 |
KNOT [Member] | ||
Balance Sheets: | ||
Amount due from related parties | 1,149 | 547 |
Amount due to related parties | $ 1,412 | $ 4,552 |
Related Party Transactions - 66
Related Party Transactions - Schedule of Trade Accounts Payables to Related Parties (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Balance Sheet: | ||
Trade accounts payables to related parties | $ 1,766 | $ 5,450 |
Trade Accounts Payables [Member] | ||
Balance Sheet: | ||
Trade accounts payables to related parties | 1,284 | 1,412 |
Trade Accounts Payables [Member] | KOAS [Member] | ||
Balance Sheet: | ||
Trade accounts payables to related parties | 660 | 864 |
Trade Accounts Payables [Member] | KNOT [Member] | ||
Balance Sheet: | ||
Trade accounts payables to related parties | $ 624 | $ 548 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Book value of assets pledged as security | $ 1,803,000,000 | $ 1,723,000,000 | |
Insurance coverage deductible amount per vessel | $ 150,000 | ||
Lost hire compensation insurance coverage, description | Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. | ||
Insurance coverage for pollution, maximum liability per vessel | $ 1,000,000,000 | ||
Lost hire compensation insurance coverage, deductible days | 14 days | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Lost hire compensation insurance coverage, deductible days | 180 days |
Earnings per Unit and Cash Di68
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Net income | $ 21,681 | $ 16,915 | $ 52,405 | $ 28,344 | |
Less: Series A Preferred unitholders' interest in net income | 1,800 | 1,009 | 3,600 | 1,653 | |
Net income attributable to the unitholders of KNOT Offshore Partners LP | 19,881 | 15,906 | 48,805 | 26,691 | $ 62,811 |
Less: Distributions | 18,034 | 16,379 | 36,068 | 32,758 | |
Under (over) distributed earnings | 1,847 | (473) | 12,737 | (6,067) | |
Under (over) distributed earnings attributable to: | |||||
Under (over) distributed earnings | $ 1,847 | $ (473) | $ 12,737 | $ (6,067) | |
Earnings per unit (diluted): | |||||
Cash distributions declared and paid in the period per unit | $ 0.520 | $ 0.520 | $ 1.040 | $ 1.040 | |
Subsequent event: Cash distributions Declared and paid per unit relating to the period | $ 0.520 | $ 0.520 | $ 1.040 | $ 0.520 | |
Common Units [Member] | |||||
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Net income attributable to the unitholders of KNOT Offshore Partners LP | $ 47,904 | 61,651 | |||
Under (over) distributed earnings | $ 1,813 | $ (464) | 12,502 | $ (5,955) | |
Under (over) distributed earnings attributable to: | |||||
Under (over) distributed earnings | $ 1,813 | $ (464) | $ 12,502 | $ (5,955) | |
Weighted average units outstanding (basic) (in thousands): | |||||
Weighted average units outstanding, basic | 32,694 | 29,694 | 32,694 | 29,570 | |
Weighted average units outstanding (diluted) (in thousands): | |||||
Weighted average units outstanding, diluted | 36,355 | 31,798 | 36,360 | 31,296 | |
Earnings per unit (basic) | |||||
Earnings per unit, basic | $ 0.597 | $ 0.526 | $ 1.465 | $ 0.886 | |
Earnings per unit (diluted): | |||||
Earnings per unit, diluted | $ 0.585 | $ 0.522 | $ 1.415 | $ 0.886 | |
General Partner Unit [Member] | |||||
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Net income attributable to the unitholders of KNOT Offshore Partners LP | $ 901 | $ 1,160 | |||
Under (over) distributed earnings | $ 34 | $ (9) | 235 | $ (112) | |
Under (over) distributed earnings attributable to: | |||||
Under (over) distributed earnings | $ 34 | $ (9) | $ 235 | $ (112) | |
Weighted average units outstanding (basic) (in thousands): | |||||
Weighted average units outstanding, basic | 615 | 559 | 615 | 559 | |
Weighted average units outstanding (diluted) (in thousands): | |||||
Weighted average units outstanding, diluted | 615 | 559 | 615 | 559 | |
Earnings per unit (basic) | |||||
Earnings per unit, basic | $ 0.597 | $ 0.526 | $ 1.465 | $ 0.882 | |
Earnings per unit (diluted): | |||||
Earnings per unit, diluted | $ 0.597 | $ 0.526 | $ 1.465 | $ 0.882 |
Earnings per Unit and Cash Di69
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Net Income | $ 19,881 | $ 15,906 | $ 48,805 | $ 26,691 | $ 62,811 |
IDR Holders [Member] | |||||
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Net Income | 700 | 600 | 1,400 | 1,300 | |
KNOT [Member] | |||||
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Cash distributions | $ 700 | $ 600 | $ 1,400 | $ 1,300 |
Earnings per Unit and Cash Di70
Earnings per Unit and Cash Distributions - Additional Information (Detail) - shares | 3 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Series A Preferred Unit [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Number of common units and subordinated units outstanding | 3,750,000 | ||||
Public Owned Common Units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Number of common units and subordinated units outstanding | 24,036,226 | ||||
Subordinated Units [Member] | KNOT [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Number of common units and subordinated units outstanding | 8,567,500 | ||||
General Partner Unit [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Number of General Partner Units Outstanding | 615,117 | 615,117 | 558,674 | ||
General Partner Unit [Member] | KNOT [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Number of General Partner Units Outstanding | 615,117 | ||||
IDR Holders [Member] | KNOT [Member] | Maximum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Percentage of operating surplus distributed to unitholders | 48.00% | 48.00% | 48.00% | 48.00% | |
Common Units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Number of common units and subordinated units outstanding | 32,694,094 | ||||
Common Units [Member] | KNOT [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Number of common units and subordinated units outstanding | 90,368 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price of Each Transaction (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Dec. 15, 2017 | Sep. 30, 2017 | Jun. 01, 2017 | Mar. 01, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Less: Fair value of net assets acquired: | |||||||
Deferred debt issuance | $ 7,800 | $ 6,700 | |||||
Anna Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 19,913 | ||||||
Less: Fair value of net assets acquired: | |||||||
Vessels and equipment | 120,274 | ||||||
Cash | 4,537 | ||||||
Inventories | 257 | ||||||
Derivative assets | 1,839 | ||||||
Others current assets | 111 | ||||||
Amounts due from related parties | 520 | ||||||
Long-term debt | (84,217) | ||||||
Long-term debt from related parties | (22,535) | ||||||
Deferred debt issuance | 1,228 | ||||||
Trade accounts payable | (971) | ||||||
Accrued expenses | (1,013) | ||||||
Amounts due to related parties | (117) | ||||||
Subtotal | 19,913 | ||||||
Difference between the purchase price and fair value of net assets acquired | 0 | ||||||
Goodwill | 0 | ||||||
Difference between the purchase price and allocated values | $ 0 | ||||||
Brasil Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 5,764 | ||||||
Less: Fair value of net assets acquired: | |||||||
Vessels and equipment | 96,000 | ||||||
Cash | 5,217 | ||||||
Inventories | 146 | ||||||
Others current assets | 125 | ||||||
Amounts due from related parties | 2 | ||||||
Long-term debt | (59,000) | ||||||
Deferred debt issuance | 618 | ||||||
Trade accounts payable | (154) | ||||||
Accrued expenses | (1,185) | ||||||
Amounts due to related parties | (36,005) | ||||||
Subtotal | 5,764 | ||||||
Difference between the purchase price and fair value of net assets acquired | 0 | ||||||
Goodwill | 0 | ||||||
Difference between the purchase price and allocated values | $ 0 | ||||||
Lena Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 33,235 | ||||||
Less: Fair value of net assets acquired: | |||||||
Vessels and equipment | 142,457 | ||||||
Cash | 470 | ||||||
Inventories | 243 | ||||||
Derivative assets | 1,729 | ||||||
Others current assets | 193 | ||||||
Amounts due from related parties | 23,599 | ||||||
Long-term debt | (111,068) | ||||||
Long-term debt from related parties | (22,706) | ||||||
Deferred debt issuance | 867 | ||||||
Trade accounts payable | (256) | ||||||
Accrued expenses | (224) | ||||||
Prepaid charter and deferred revenue | (1,758) | ||||||
Amounts due to related parties | (186) | ||||||
Income tax payable | (125) | ||||||
Subtotal | 33,235 | ||||||
Difference between the purchase price and fair value of net assets acquired | 0 | ||||||
Goodwill | 0 | ||||||
Difference between the purchase price and allocated values | $ 0 | ||||||
Vigdis Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 31,759 | ||||||
Less: Fair value of net assets acquired: | |||||||
Vessels and equipment | 145,772 | ||||||
Intangibles: Above market time charter | 1,458 | ||||||
Cash | 3,438 | ||||||
Inventories | 190 | ||||||
Derivative assets | 226 | ||||||
Others current assets | 128 | ||||||
Amounts due from related parties | 18,374 | ||||||
Long-term debt | (114,411) | ||||||
Long-term debt from related parties | (22,703) | ||||||
Deferred debt issuance | 928 | ||||||
Trade accounts payable | (187) | ||||||
Accrued expenses | (1,082) | ||||||
Amounts due to related parties | (372) | ||||||
Subtotal | 31,759 | ||||||
Difference between the purchase price and fair value of net assets acquired | 0 | ||||||
Goodwill | 0 | ||||||
Difference between the purchase price and allocated values | $ 0 | ||||||
Tordis Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 32,983 | ||||||
Less: Fair value of net assets acquired: | |||||||
Vessels and equipment | 145,754 | ||||||
Intangibles: Above market time charter | 1,468 | ||||||
Cash | 609 | ||||||
Inventories | 129 | ||||||
Derivative assets | 1,377 | ||||||
Others current assets | 1,348 | ||||||
Amounts due from related parties | 20,834 | ||||||
Long-term debt | (114,411) | ||||||
Long-term debt from related parties | (22,960) | ||||||
Deferred debt issuance | 795 | ||||||
Trade accounts payable | (106) | ||||||
Accrued expenses | (503) | ||||||
Amounts due to related parties | (1,351) | ||||||
Subtotal | 32,983 | ||||||
Difference between the purchase price and fair value of net assets acquired | 0 | ||||||
Goodwill | 0 | ||||||
Difference between the purchase price and allocated values | $ 0 |
Acquisitions - Schedule of Pu72
Acquisitions - Schedule of Purchase Price of Each Transaction (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Dec. 15, 2017 | Sep. 30, 2017 | Jun. 01, 2017 | Mar. 01, 2017 | Jun. 30, 2018 |
Anna Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to KNOT (from KNOT) | $ 14,637 | |||||
Purchase price adjustments | 5,276 | |||||
Seller's credit | 0 | |||||
Seller's loan | 0 | |||||
Purchase price | 19,913 | |||||
Vessels and equipment | $ 120,274 | |||||
Anna Knutsen [Member] | Dry Docking [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | $ 2,329 | |||||
Brasil Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to KNOT (from KNOT) | $ 2,383 | |||||
Purchase price adjustments | 3,381 | |||||
Seller's credit | 0 | |||||
Seller's loan | 0 | |||||
Purchase price | 5,764 | |||||
Vessels and equipment | $ 96,000 | |||||
Brasil Knutsen [Member] | Dry Docking [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | 260 | |||||
Lena Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to KNOT (from KNOT) | $ 33,343 | |||||
Purchase price adjustments | (108) | |||||
Seller's credit | 0 | |||||
Seller's loan | 0 | |||||
Purchase price | 33,235 | |||||
Vessels and equipment | $ 142,457 | |||||
Lena Knutsen [Member] | Dry Docking [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | 2,741 | |||||
Vigdis Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to KNOT (from KNOT) | $ 28,109 | |||||
Purchase price adjustments | 3,650 | |||||
Seller's credit | 0 | |||||
Seller's loan | 0 | |||||
Purchase price | 31,759 | |||||
Vessels and equipment | $ 145,772 | |||||
Vigdis Knutsen [Member] | Dry Docking [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | 2,709 | |||||
Tordis Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to KNOT (from KNOT) | $ 31,242 | |||||
Purchase price adjustments | 1,741 | |||||
Seller's credit | 0 | |||||
Seller's loan | 0 | |||||
Purchase price | 32,983 | |||||
Vessels and equipment | $ 145,754 | |||||
Tordis Knutsen [Member] | Dry Docking [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | $ 2,753 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Dec. 15, 2017 | Dec. 15, 2017 | Nov. 09, 2017 | Sep. 30, 2017 | Jun. 01, 2017 | Mar. 01, 2017 | Jan. 10, 2017 | Jan. 06, 2017 | Jun. 30, 2018 | Dec. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||||||||||||
Revenues | $ 69,765 | $ 54,406 | $ 137,808 | $ 99,397 | |||||||||||||
Net Income | $ 19,881 | $ 15,906 | 48,805 | $ 26,691 | $ 62,811 | ||||||||||||
Anna Knutsen [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | ||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 120,274 | ||||||||||||||||
Business acquisition, outstanding debt | 84,217 | ||||||||||||||||
Purchase price adjustment for capitalized fees related to financing | 1,400 | ||||||||||||||||
Post-closing adjustment | $ 5,276 | ||||||||||||||||
Brasil Knutsen [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | 100.00% | |||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 96,000 | $ 96,000 | |||||||||||||||
Business acquisition, outstanding debt | 59,000 | 59,000 | |||||||||||||||
Purchase price adjustment for capitalized fees related to financing | 600 | 600 | |||||||||||||||
Post-closing adjustment | 3,381 | ||||||||||||||||
Business acquisition, receivable owned | $ 35,200 | 35,200 | |||||||||||||||
Revenues | 700 | ||||||||||||||||
Net Income | $ 300 | ||||||||||||||||
Lena Knutsen [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | ||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 142,457 | ||||||||||||||||
Business acquisition, outstanding debt | 111,068 | ||||||||||||||||
Purchase price adjustment for capitalized fees related to financing | 1,000 | ||||||||||||||||
Post-closing adjustment | (108) | ||||||||||||||||
Business acquisition, receivable owned | 24,100 | ||||||||||||||||
Revenues | $ 5,200 | ||||||||||||||||
Net Income | $ (100) | ||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | 142,000 | ||||||||||||||||
Business acquisition, outstanding debt | $ 133,800 | ||||||||||||||||
Vigdis Knutsen [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | ||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 145,772 | ||||||||||||||||
Business acquisition, outstanding debt | 114,411 | ||||||||||||||||
Purchase price adjustment for capitalized fees related to financing | 900 | ||||||||||||||||
Post-closing adjustment | 3,650 | ||||||||||||||||
Business acquisition, receivable owned | 17,900 | ||||||||||||||||
Revenues | $ 11,800 | ||||||||||||||||
Net Income | $ 2,600 | ||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | 147,000 | ||||||||||||||||
Business acquisition, outstanding debt | $ 137,700 | ||||||||||||||||
Tordis Knutsen [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | ||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 145,754 | ||||||||||||||||
Business acquisition, outstanding debt | 114,411 | ||||||||||||||||
Purchase price adjustment for capitalized fees related to financing | 800 | ||||||||||||||||
Post-closing adjustment | 1,741 | ||||||||||||||||
Business acquisition, receivable owned | 21,100 | ||||||||||||||||
Revenues | $ 17,200 | ||||||||||||||||
Net Income | $ 3,200 | ||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | 147,000 | ||||||||||||||||
Business acquisition, outstanding debt | $ 137,700 | ||||||||||||||||
Tordis Knutsen [Member] | Series A Preferred Unit [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Common units issued | 2,083,333 | ||||||||||||||||
Tordis Knutsen [Member] | Common Units [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Common units issued | 3,000,000 | ||||||||||||||||
Common Units [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Common units issued | 3,000,000 | 2,500,000 | 2,500,000 | ||||||||||||||
Net Income | $ 47,904 | $ 61,651 | |||||||||||||||
Common Units [Member] | Brasil Knutsen [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Common units issued | 3,000,000 |
Acquisitions - Schedule of Summ
Acquisitions - Schedule of Summarized Consolidated Pro Forma Financial Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Brasil Knutsen [Member] | |
Business Acquisition [Line Items] | |
Revenue | $ 223,220 |
Net income | 64,034 |
Lena Knutsen [Member] | |
Business Acquisition [Line Items] | |
Revenue | 220,904 |
Net income | 62,999 |
Vigdis Knutsen [Member] | |
Business Acquisition [Line Items] | |
Revenue | 222,354 |
Net income | 63,225 |
Tordis Knutsen [Member] | |
Business Acquisition [Line Items] | |
Revenue | 221,198 |
Net income | $ 66,584 |
Equity Offerings and Sale of 75
Equity Offerings and Sale of Series A Preferred Units - Schedule of Equity Offerings (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Jan. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Equity [Abstract] | |||||
Gross proceeds received | $ 66,936 | $ 56,125 | $ 123,061 | ||
Less: Underwriters' discount | 660 | 925 | 1,585 | ||
Less: Offering expenses | 230 | 300 | 530 | ||
Net proceeds received | $ 66,046 | $ 54,900 | $ (4) | $ 54,879 | $ 120,946 |
Equity Offerings and Sale of 76
Equity Offerings and Sale of Series A Preferred Units - Schedule of Equity Offerings (Parenthetical) (Detail) | Nov. 09, 2017 | Nov. 30, 2017 |
Subsidiary or Equity Method Investee [Line Items] | ||
Proportional capital contribution | 1.85% | |
General Partner Unit [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Proportional capital contribution | 1.85% |
Equity Offerings and Sale of 77
Equity Offerings and Sale of Series A Preferred Units - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 09, 2017 | Jun. 30, 2017 | Feb. 02, 2017 | Jan. 10, 2017 | Jan. 06, 2017 | Jun. 30, 2017 | Feb. 28, 2017 | Jun. 30, 2018 |
Subsidiary or Equity Method Investee [Line Items] | ||||||||
General partner's contribution | $ 1,200 | |||||||
General partner interest in Partnership, percentage | 1.85% | |||||||
Net proceeds from public offering | $ 66,000 | $ 54,900 | ||||||
Repayment of credit facility | $ 43,500 | |||||||
Series A Preferred Unit [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Proceeds from private placement of Preferred Units | $ 40,000 | $ 50,000 | $ 90,000 | |||||
Private Placement [Member] | Series A Preferred Unit [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Preferred Units issued | 2,083,333 | |||||||
Preferred Units issued, price per unit | $ 24 | |||||||
Proceeds from private placement of Preferred Units | $ 48,600 | |||||||
Second Private Placement [Member] | Series A Preferred Unit [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Preferred Units issued | 1,666,667 | 1,666,667 | ||||||
Preferred Units issued, price per unit | $ 24 | $ 24 | ||||||
Proceeds from private placement of Preferred Units | $ 38,900 | |||||||
Second Private Placement [Member] | Series A Preferred Unit [Member] | Vigdis Knutsen [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Repayment of credit facility | $ 30,000 | |||||||
Common Units [Member] | ||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||
Limited partnership common units sold | 3,000,000 | 2,500,000 | 2,500,000 |
Equity Offering and Sale of Ser
Equity Offering and Sale of Series A Preferred Units - Schedule of Sale of Series A Preferred Units (Detail) - Series A Preferred Unit [Member] - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Feb. 28, 2017 | Jun. 30, 2018 | |
Preferred Units [Line Items] | |||
Gross proceeds received | $ 40,000 | $ 50,000 | $ 90,000 |
Less: Fee | 1,000 | 1,000 | 2,000 |
Less: Expenses | 150 | 386 | 536 |
Net proceeds received | $ 38,850 | $ 48,614 | $ 87,464 |
Unit Activity - Schedule of Mov
Unit Activity - Schedule of Movement in Number of Common Units, and General Partner Units and Series A Preferred Units (Detail) - shares | Nov. 09, 2017 | Jun. 30, 2017 | Feb. 02, 2017 | Jan. 10, 2017 | Jan. 06, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Common Units [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Public offering | 3,000,000 | 2,500,000 | 2,500,000 | |||||
Number of Units | 32,694,094 | 32,694,094 | 27,194,094 | |||||
General Partner Unit [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Public offering | 56,443 | |||||||
Number of General Partner Units Outstanding | 615,117 | 615,117 | 558,674 | |||||
Convertible Preferred Units [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of Preferred Units, Outstanding | 3,750,000 | 3,750,000 | ||||||
Convertible Preferred Units [Member] | Series A Preferred Unit [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of Preferred Units Sold | 1,666,667 | 2,083,333 |
Unit Activity - Additional Info
Unit Activity - Additional Information (Detail) - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Aug. 12, 2015 | |
Common Units [Member] | General Partner [Member] | |||
Class of Stock [Line Items] | |||
Partners' Capital Account, Units Purchased | 0 | 0 | |
Common Units [Member] | KNOT [Member] | |||
Class of Stock [Line Items] | |||
Partners' Capital Account, Units Purchased | 0 | 0 | |
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Partnership authorized to repurchase common units | 666,667 | ||
General Partner authorized to repurchase common units | 333,333 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - USD ($) | Sep. 04, 2018 | Aug. 14, 2018 |
Subsequent Event [Line Items] | ||
Cash distributions paid in the period per unit | $ 0.52 | |
Vessels [Member] | Term Loan Refinancing [Member] | ||
Subsequent Event [Line Items] | ||
Senior secured credit facility | $ 320,000,000 | |
Vessels [Member] | Revolving Credit facility Refinancing [Member] | ||
Subsequent Event [Line Items] | ||
Senior secured credit facility | 35,000,000 | |
Vessels [Member] | Revolving Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Senior secured credit facility | $ 55,000,000 | |
Debt instrument, maturity date | Sep. 30, 2023 | |
Percentage of commitment fee | 0.85% | |
Vessels [Member] | Term Loan Facility [Member] | ||
Subsequent Event [Line Items] | ||
Senior secured credit facility | $ 320,000,000 | |
Balloon payment to be paid | $ 177,000,000 | |
Vessels [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Long term debt interest rate description | LIBOR plus a margin of 2.125% | |
Debt instrument, stated percentage | 2.125% | |
Vessels [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term Loan Facility [Member] | ||
Subsequent Event [Line Items] | ||
Long term debt interest rate description | LIBOR plus a margin of 2.125% | |
Debt instrument, stated percentage | 2.125% | |
Series A Preferred Unit [Member] | ||
Subsequent Event [Line Items] | ||
Cash distributions | $ 1,800,000 | |
Cash distribution paid date | Aug. 14, 2018 |