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1. Company Snapshot

1.a. Company Description

KNOT Offshore Partners LP owns, acquires, and operates shuttle tankers under long-term charters in the North Sea and Brazil.The company provides loading, transportation, discharge, and storage of crude oil under time charters and bareboat charters.As of March 17, 2022, it operated a fleet of seventeen shuttle tankers.


The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.

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1.b. Last Insights on KNOP

KNOT Offshore Partners LP's recent performance has been driven by several positive factors. The company reported Q2 2025 earnings with total revenues of $87.1 million and operating income of $22.2 million. A $10 million common unit repurchase program was authorized, demonstrating a commitment to shareholder value. Additionally, the company received a non-binding proposal from Knutsen NYK Offshore Tankers AS to acquire all publicly held common units for $10 in cash per unit. The partnership's solid quarterly results and progress on contracting have also contributed to its positive momentum.

1.c. Company Highlights

2. KNOT Offshore Partners' Q2 2025 Earnings: Steady Performance and Strategic Moves

KNOT Offshore Partners reported a solid second-quarter 2025 financial performance, with revenues reaching $87.1 million, operating income of $22.2 million, and net income of $6.8 million. Adjusted EBITDA stood at $51.6 million, and available liquidity was $104 million, comprising $66.3 million in cash and $38.5 million in undrawn credit facilities. Earnings per share (EPS) came in at $0.2, beating estimates of $0.17. The company's financial performance was marked by a strong operational execution, with overall utilization at 96.8%.

Publication Date: Oct -28

📋 Highlights
  • Revenue and Profitability:: Q2 2025 revenue reached $87.1M, with operating income of $22.2M, net income of $6.8M, and adjusted EBITDA of $51.6M.
  • Liquidity Position:: Available liquidity totaled $104M, including $66.3M in cash and $38.5M in undrawn credit facilities.
  • Asset Transactions:: Refinanced the Tove Knutsen for $32M and acquired the Daqing Knutsen for $95M, with $25M in cash.
  • Backlog and Fleet:: $895M in fixed contract backlog, averaging 2.6 years, with a fleet average age reduced to 9.7 years after adding the 19th vessel.
  • Cash Distribution and Buybacks:: Declared $0.026/unit cash distribution and repurchased 226K units at $7.24/share under a $10M buyback program.

Operational Highlights and Cash Distribution

The partnership declared a cash distribution of $0.026 per common unit, paid in August. Notably, subsequent to quarter-end, KNOT Offshore Partners refinanced the Tove Knutsen with a sale-and-leaseback, generating $32 million in cash, and purchased the Daqing Knutsen from its sponsor for $95 million, with a cash component of approximately $25 million. The Daqing Knutsen is on a time charter with PetroChina in Brazil through July 2027, adding to the company's backlog.

Backlog and Debt Repayment

KNOT Offshore Partners' backlog as of June 30, 2025, stood at $895 million of fixed contracts, averaging 2.6 years. The company continues to repay debt at $95 million or more per year, producing flexibility and optionality for future capital allocation. Management expressed confidence in the positive momentum for both KNOP and the wider sector, citing a tightening shuttle tanker market in Brazil and the North Sea, driven by FPSO start-ups and ramp-ups.

Valuation and Growth Prospects

With a P/E Ratio of 9.39 and an EV/EBITDA of 5.62, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 4.3%. The company's ability to generate cash is reflected in its Free Cash Flow Yield of 46.11%. As KNOT Offshore Partners continues to navigate the offshore market, its strategic moves, such as the unit buyback program and debt repayment, are expected to create value for shareholders.

Outlook and Conclusion

Management's confidence in the tightening shuttle tanker market and the company's solid financial performance position KNOT Offshore Partners for continued success. The addition of new vessels and the refinancing of existing ones are expected to drive future growth, making the company's prospects look promising.

3. NewsRoom

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Knot Offshore Partners LP Earnings Release—Interim Results for the Period Ended September 30, 2025

Dec -04

Source: businesswire.com

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KNOT Offshore Partners LP Announces 3rd Quarter 2025 Earnings Results Conference Call

Nov -18

Source: businesswire.com

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Knot Offshore (KNOP) Soars 9.7%: Is Further Upside Left in the Stock?

Nov -04

Source: zacks.com

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KNOT Offshore Partners LP Receives Buyout Offer from Knutsen NYK Offshore Tankers AS

Nov -03

Source: businesswire.com

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KNOT Offshore Partners LP Announces 2025 Annual Meeting and Nomination of Pernille Østensjø to Serve as an Independent Director

Oct -27

Source: businesswire.com

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Strength Seen in Knot Offshore (KNOP): Can Its 8.4% Jump Turn into More Strength?

Oct -15

Source: zacks.com

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KNOT Offshore Partners LP Announces 3rd Quarter 2025 Cash Distribution

Oct -07

Source: businesswire.com

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KNOT Offshore Partners: No Distribution Increase Anytime Soon

Sep -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.16%)

6. Segments

Time Charter

Expected Growth: 1.2%

KNOT Offshore Partners LP's 1.2% growth in Time Charter is driven by increasing demand for offshore oil and gas production, rising utilization rates, and a growing fleet of vessels. Additionally, the partnership's strong operational performance, cost savings initiatives, and strategic acquisitions have contributed to the growth.

Bareboat

Expected Growth: 0.8%

KNOT Offshore Partners LP's bareboat segment growth of 0.8 is driven by increasing demand for offshore oil and gas production, rising utilization rates, and a growing fleet size. Additionally, the company's strategic acquisitions and long-term contracts with major oil companies contribute to its steady growth.

7. Detailed Products

Shuttle Tankers

KNOT Offshore Partners LP operates a fleet of shuttle tankers that transport crude oil and other petroleum products from offshore oil fields to onshore refineries and terminals.

FPSO (Floating Production Storage and Offloading) Units

KNOT Offshore Partners LP provides FPSO units that are used for the production, storage, and offloading of oil and gas from offshore fields.

Offshore Loading Systems

KNOT Offshore Partners LP offers offshore loading systems that enable the safe and efficient transfer of oil and petroleum products from offshore fields to shuttle tankers or other vessels.

8. KNOT Offshore Partners LP's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for KNOT Offshore Partners LP is moderate, as there are limited alternatives to offshore oil and gas transportation, but customers may choose to use other modes of transportation or alternative energy sources.

Bargaining Power Of Customers

The bargaining power of customers for KNOT Offshore Partners LP is low, as the company has a diverse customer base and long-term contracts, reducing the dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for KNOT Offshore Partners LP is moderate, as the company relies on a few large suppliers for shipbuilding and equipment, but has some flexibility to negotiate prices.

Threat Of New Entrants

The threat of new entrants for KNOT Offshore Partners LP is low, as the company has a strong market position, high barriers to entry, and significant capital requirements to enter the market.

Intensity Of Rivalry

The intensity of rivalry for KNOT Offshore Partners LP is high, as the company operates in a competitive market with several established players, and pricing pressure is significant.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.19%
Debt Cost 7.01%
Equity Weight 38.81%
Equity Cost 7.01%
WACC 7.01%
Leverage 157.66%

11. Quality Control: KNOT Offshore Partners LP passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
KNOT Offshore Partners

A-Score: 4.6/10

Value: 8.9

Growth: 2.3

Quality: 4.9

Yield: 5.6

Momentum: 4.0

Volatility: 1.7

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Seanergy Maritime Holdings

A-Score: 4.5/10

Value: 7.8

Growth: 2.2

Quality: 3.8

Yield: 9.4

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Cadeler

A-Score: 4.0/10

Value: 7.3

Growth: 5.8

Quality: 5.9

Yield: 0.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Top Ships

A-Score: 2.8/10

Value: 9.6

Growth: 2.0

Quality: 4.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
EuroDry

A-Score: 2.4/10

Value: 8.0

Growth: 2.9

Quality: 0.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Globus Maritime

A-Score: 1.9/10

Value: 9.2

Growth: 1.3

Quality: 1.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.72$

Current Price

10.72$

Potential

-0.00%

Expected Cash-Flows