Derek Lowe: Well, Jim, thanks for your questions. So the range of utilization that — or contracting that we currently have in terms of full visibility for this year 79% fixed and 91% if that’s — if you include exercise of all client options. Those figures I appreciate rein chart format that are set out on Slide 11. And I don’t have the individual numbers directly to hand, but you can — the chart gives you a good indication of those levels.
Jim Altschul: Oh, I’m sorry. I didn’t look at that. I just did really — sorry about that. But you’re going to have one ship off hire for this quarter Dan Cisne, if I remember correctly. And also, maybe I wasn’t listening carefully enough, but will there be much of an impact on the revenues and in fact some of the ships that were on charter are now on short-term conventional tanker contracts, is that going to make a meaningful — the combination of these things, is that going to make a meaningful — create a meaningful impact on first quarter revenues?
Derek Lowe: Well, we’re only talking about one vessel, so one out of 18. So the percentage there is order of magnitude 5% and that’s assuming no income. But actually, as we’ve described with the conventional work that she’s been able to do, there has been some income and some utilization. So those overall figures should feed through to the figures in Q1. But it’s not a question of entirely removing a vessel from the performance of the fleet over this quarter and it is limited to one vessel in this quarter.
Jim Altschul: Okay. Is it reasonable to assume that the rates is getting short-term conventional tanker work are less than you would get on a medium or long-term charter for shuttle tanker work?
Derek Lowe: Yes. That’s correct. And obviously they’re modeled on a slightly different basis because of the short-term nature of those — of the commercial contracts that we’re looking at as well.
Jim Altschul: Thank you very much.
Derek Lowe: Thanks, Altschul.
Operator: Lastly, we have a follow-up from Poe Fratt from Alliance Global Partners. Your line is now open. Please go ahead.
Poe Fratt: Yeah. Hi, Derik.
Derek Lowe: Hi.
Poe Fratt: Can you talk about the backlog? There was a pretty healthy increase in the backlog of to $699 million from $645 million from the time of the third quarter call. Can you just talk about that incremental increase because it didn’t seem like you’re contracted backlog in years went up that significantly, but you did add $50 million. Can you just talk about the mechanics of that Derek?
Derek Lowe: Sure. I mean the – obviously, we burn off backlog each quarter as well and that would be factored into it. And I appreciate that serves to reduce the number, before any additions. The main addition to the backlog was the Carmen Knutsen with the exercise of one-year option by Repsol. We also had the — the Dan Sabia for an additional six months in the first half of this year as well. So those are the major changes.
Poe Fratt: Yes, you sort of calculated that is adding about 4.5 years of backlog and you burn off every quarter about 4.5 years of backlog just and so you take the $645 million, you take out the $72 million that you recognized in the fourth quarter revenue, and to get to the new number. And that delta is about $126 million. And it just seemed a little bit higher than I would have anticipated given that the Torill, Hilda which I assume are included in the backlog are working at reduced rates and the Carmen was really the only option that would have been expired or would have been exercised at a decent rate in my mind.
Derek Lowe: Yes. I mean, the Carmen was the main headline since we held our call in December. And these figures relate to quarter end. So you need to look at also at the additional contracts secured during Q4 but were before December 14. So, apologies for the complexity there. So on Slide 4, you’ve got just a reminder there and it will also be in our Q3 release as well. So there was additional work secured for Windsor Knutsen which we announced in December; and Brasil Knutsen as well and then a one-year extension on each of the Tordis and Lena Knutsen. So those will also be part of the addition to backlog over that time.
Poe Fratt: Okay. Great. That’s helpful. Thank you so much.
Derek Lowe: Yes. Thanks. So I apologies it’s in two places, but we didn’t want to reannounce the same thing twice.
Operator: There are no further questions. I will now hand back over to Derek Lowe for any closing remarks. Answer
Derek Lowe: Thank you again, for joining this earnings call for KNOT Offshore Partners fourth quarter in 2023, and I look forward to speaking with you again following the first quarter results for 2024.
Operator: That concludes today’s call, you may now disconnect your lines.
