KNOT Offshore Partners Announces Quarterly Dividend of $0.026 per Share

KNOT Offshore Partners has declared a $0.026/share quarterly dividend, in line with previous payments. The forward yield is 1.49%. The dividend will be payable on August 7, 2023, for shareholders of record on July 28, 2023.

KNOT Offshore Partners (KNOP) has announced a $0.026 per share quarterly dividend, maintaining the same rate as previous payments. The forward yield stands at 1.49%, making it attractive for income-focused investors. The dividend will be payable on August 7, 2023, to shareholders of record on July 28, 2023 [2].

This dividend declaration comes on the heels of the company's strategic and operational updates, which included the acquisition of the 2022-built Daqing Knutsen shuttle tanker. The vessel is on a fixed charter with PetroChina, adding to KNOP's growing fleet and providing a secure cash flow stream [3]. The company's debt refinancing efforts are also progressing, with the Tove Knutsen expected to be refinanced through a sale-leaseback transaction, generating approximately $32 million in proceeds [3].

Despite the recent dividend cut in 2023 due to refinancing concerns, KNOP has since reinstated a token dividend of $0.026 per share, signaling a return to investor confidence [1]. The company's operational performance in Q1 2025 was robust, with $84 million in revenue, $23 million in operating income, and $52 million in adjusted EBITDA, all exceeding management's internal budget [1]. The company's liquidity position is strong, with $100.8 million on hand, enough to cover scheduled dry-docks and other operational expenses [1].

Analysts who still cover the stock peg fair value at $13.23, more than 100% above today's $6.90 quote. The recovery story for KNOP is well underway, with a refreshed, cash-generating fleet and distribution growth that has restarted, albeit modestly. Long-term investors who can stomach some maritime noise could find themselves owning a niche asset that generates substantial cash flow [1].

References:
[1] https://financhill.com/blog/investing/where-will-knot-stock-be-in-1-year
[2] https://seekingalpha.com/news/4465845-knot-offshore-partners-declares-0_026-dividend
[3] https://www.marketscreener.com/quote/stock/KNOT-OFFSHORE-PARTNERS-LP-12936898/news/KNOT-Offshore-Partners-LP-Provides-Strategic-and-Operational-Update-50417598/