KNOT Offshore Partners LP (NYSE:KNOP) Q4 2022 Earnings Call Transcript

Gary Chapman: Yes. I mean, we’ve always taken the view throughout the history of this business that it’s prudent to hedge a good proportion of our floating debt. And by taking on to effectively fixed term sale and leaseback transactions, that’s also helped the percentage that is effectively fixed. I think, we haven’t entered into new swaps recently because of the rising interest rate environment. I think a lot of those forward pricing has already been factored in, and so the swaps were not so attractive. So I think we may see some of our coverage percentage wise for over time. But it’s something we keep under constant review. If there is an opportunity and we feel it’s the right thing to do, then are opportunities for us to enter into new hedges.

I think the Board mandates and gives management some leeway, so we can act quickly on this within certain parameters, because obviously, if you wait too long, you kind of miss the boat. But it’s something that we’ve constantly got under review. And like most of the companies, interest rate increases are not particularly welcome after low interest rates for so long. But we’ve only got 35% open today. So, we’re not in a bad position.

Operator: There are no additional questions waiting at this time. So, I’d like to pass the call back to Gary Chapman for any closing remarks. Please go ahead.

Gary Chapman: Yes. Thank you everybody for listening. And we’ll hopefully be back in touch for our first quarter in May. Have a good day.

Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your line.