What factors drove the changes in KNOT Offshore's revenue and profit?

What is the revenue and EPS growth rate for KNOT Offshore year over year?

Did KNOT Offshore beat or miss consensus estimates last quarter?

What does KNOT Offshore do and what are its main business segments?

What is KNOT Offshore's gross profit margin?

What is the market's earnings forecast for KNOT Offshore next quarter?

What is KNOT Offshore's latest dividend and current dividend yield?

What guidance did KNOT Offshore's management provide for the next earnings period?

- **Strategic Offer**: Sponsor KNOT proposes $10/unit for common units; independent committee evaluates
- **Strong Financials**: $96.9M revenue, $61.6M EBITDA, 99.9% vessel utilization
- **Operational Expansion**: Acquired Daqing Knutsen, refinanced $71M Synnøve Knutsen loan
- **Demand Growth**: Petrobras 5-year plan supports 2026-2030 shuttle tanker demand
- **Charter Coverage**: 93% of 2026 vessel time, 69% of 2027 covered by fixed contracts
- **Fleet Activity**: 4-5 drydocks in 2026; Fortaleza Knutsen charter begins Q2 2026
- **Liquidity**: $125.2M available (cash: $77.2M, credit: $48M)

**【Management Opening Remarks】**
- Received an unsolicited, nonbinding offer from sponsor KNOT to acquire all publicly held common units at $10 per unit.
- Conflicts Committee (independent directors) is evaluating the offer with support from Evercore and Richards Layton & Finger.
- No further updates on the offer will be provided during the call; refer to November 3 press release and KNOT's 13D filing for details.

**【Financial Highlights】**
- Q3 2025 Revenue: $96.9 million
- Operating Income: $30.6 million
- Net Income: $15.1 million
- Adjusted EBITDA: $61.6 million
- Available Liquidity: $125.2 million (cash: $77.2M, undrawn credit: $48M)
- Vessel Utilization: 99.9% (96.5% including drydocking)
- Q3 Distribution: $0.026 per unit paid in November

**【Operational Developments】**
- Acquired Daqing Knutsen from sponsor with 7-year guaranteed rate
- Completed $3M buyback program (385,000 units at $7.87 avg price)
- Refinanced $25M NTT credit facility and $32M Tove Knutsen sale-leaseback
- Extended Hilda Knutsen charter with Shell (+1 year) and Bodil Knutsen with Equinor (through March 2029 + 2 options)

**【Q4 2025 Developments】**
- Secured $71M Synnøve Knutsen loan and $25M SBI Shinsei credit facility
- Fortaleza Knutsen charter with KNOT begins Q2 2026 (1 year fixed + 2 options)
- Annual meeting scheduled for December 15 with new director nomination

**【Charter Portfolio】**
- 93% of 2026 vessel time covered by fixed contracts (88% if options exercised)
- 69% of 2027 vessel time covered (88% if options exercised)
- Petrobras 5-year plan supports shuttle tanker demand through 2030
- Current order book indicates medium-term shortage vs production growth

KNOT Offshore Partners LP Common Units (KNOP) Q3 2025 Earnings Call Transcript

- **Strong Financial Performance**: Q2 revenue of $87.1 million, Adjusted EBITDA of $51.6 million, and $104.8 million in available liquidity.
- **Strategic Capital Allocation**: Acquired Daqing Knutsen with 7 years of charter coverage, refinanced Tove Knutsen to release $32 million, and initiated $10 million unit buyback program.
- **Fleet Optimization**: Reduced average fleet age to 9.7 years and maintained 96.8% utilization despite 2 drydockings.
- **Growth Momentum**: $895 million backlog of fixed contracts and 89% of 2026 vessel time covered by charters.
- **Debt Management**: Annual debt paydown of $95 million+ and average debt margin of 2.23% over SOFR.

**【CEO Opening Remarks】**
- Q2 2025 revenue: $87.1 million, operating income: $22.2 million, net income: $6.8 million, Adjusted EBITDA: $51.6 million.
- Available liquidity: $104.8 million (cash: $66.3 million, undrawn credit: $38.5 million), up $4 million from Q1.
- Fleet utilization: 96.8% (full utilization excluding 2 drydockings).
- Cash distribution of $0.026 per unit paid in August.

**【Financial Highlights】**
- Refinanced Tove Knutsen via sale-leaseback, netting $32 million.
- Acquired Daqing Knutsen for $95 million (cash: $25 million, debt: $70 million), adding 7 years of charter coverage with PetroChina.
- Initiated $10 million unit buyback program, repurchasing 226,000 units at $7.24 average price.
- Debt paydown: $95 million+ annually; average debt margin: 2.23% over SOFR.

**【Operational Developments】**
- Brasil Knutsen to charter with Equinor next month, minimizing downtime from Petrorio.
- Repsol Sinopec extended Raquel Knutsen charter to June 2028.
- Windsor Knutsen commenced operations with ExxonMobil post-drydocking.
- Fleet expanded to 19 vessels (average age: 9.7 years post-Daqing acquisition).
- Backlog of $895 million in fixed contracts (2.6-year average duration).

**【Q&A Highlights】**
- **Vessel Delivery Timing**: Daqing Knutsen delivered on July 2, 2025.
- **Drop-Down Strategy**: Future- acquisitions contingent on accretive terms; **Older Vessels**: Actively negotiating charters for Fort no fixed timing. Recent transactions (e.g., Tove Knutsen refinancing) demonstrate capital efficiency.
aleza, Recife, and Windsor Knutsen; no plans to dispose of vessels.
- **Distribution & Growth Balance**: Buyback program ($10 million annual cap) complements fleet growth. Fleet rejuvenation (e.g., 9.7-year average age) supports long-term returns.


KNOT Offshore Partners LP Common Units (KNOP) Q2 2025 Earnings Call Transcript

- **Q1 Financial Strength**: $84M revenue, $52.2M Adjusted EBITDA, 99.5% utilization.
- **Market Growth Drivers**: Brazilian FPSO expansion, 6 newbuild orders, tight shuttle tanker capacity.
- **Debt Management**: $90M/year debt repayment; refinancing $96M 2025 balloon payments underway.
- **Strategic Opportunities**: 11 potential drop-downs; newer vessels may require ~$30-35M/unit equity.
- **Liquidity & Efficiency**: $101M liquidity; interest rate swaps covering ~$600M debt.

**【CEO & CFO Financial Overview】**
- Q1 2025 revenue: $84 million, operating income: $23.4 million, net income: $7.6 million, Adjusted EBITDA: $52.2 million.
- Liquidity: $101 million (cash: $67 million, undrawn credit: $34 million).
- Utilization rate: 99.5% (96.9% excluding dry dockings).
- Distribution declared: $0.026 per unit.

**【Market Outlook & Strategy】**
- Brazilian FPSO production growth driving demand for shuttle tankers; 6 newbuild orders from sponsor Knutsen NYK.
- Contracted revenue position: $854 million (average 2.3 years duration); transfer options average 4.7 years.
- Debt repayment rate: ~$90 million/year; Live Knutsen acquisition debt ($73 million) aligns with repayment profile.

**【Key Developments】**
- Vessel swap: Dan Sabia replaced with Live Knutsen (detailed in 20-F as subsequent event).
- Hilda Knutsen chartered with Shell for 1 year; Brazil Knutsen extended to September 2025.
- 11 potential drop-downs from sponsor (4 existing, 6 newbuilds); Board approval required.

**【Financial Position】**
- Total debt: $948 million (secured: $932 million, unsecured: $16 million).
- Interest rate swaps covering ~$600 million of debt; expiring 2025-2026; new swaps to be placed on market terms.
- Refinancing of $96 million in 2025 balloon payments underway; similar terms expected.

**【Q&A Highlights】**
- Drop-down timing: vessel-specific; newer vessels may require higher equity contributions (~$30-35 million/unit).
- Refinancing potential: higher proceeds via broker valuations; loan-to-value based on mark-to-market.
- Rate assumptions: Brazil market tightening; contract rates likely higher than historical levels.
- Dividend policy: Board focused on fleet growth; no immediate plans to increase distribution beyond current rate.

KNOT Offshore Partners LP Common Units (KNOP) Q1 2025 Earnings Call Transcript

- **Q4 Financial Stronghold**: $91.3M revenue, $63.1M Adjusted EBITDA, 98.3% vessel utilization.
- **Fleet Expansion**: Live Knutsen swap adds 5 years of fixed charter revenue, enhancing pipeline to $870M.
- **Debt Discipline**: $90M/year debt repayments, 94% 2025 charter coverage, proactive refinancing for $93M 2025 maturities.
- **Market Momentum**: Brazil FPSO growth, North Sea Johan Castberg start-up, and 75% 2026 charter coverage drive confidence.
- **Cost Efficiency**: OpEx reduction via smaller vessel exits, no material off-hire receivables.


**【CEO Opening Remarks】**
- Q4 2024 revenue: $91.3M, operating income: $34.7M, net income: $23.3M, Adjusted EBITDA: $63.1M.
- Q4 ended with $90M liquidity ($67M cash, $23M undrawn credit facilities).
- Vessel utilization: 98.3%, no scheduled drydocking disruptions.
- Cash distribution of $0.026 per unit paid in early February.

**【Market Outlook & Fleet Updates】**
- Positive industry trends in Brazil (FPSO deliveries) and North Sea (Johan Castberg, Penguin FPSO start-ups).
- Newbuild orders for shuttle tankers expected to address future capacity shortages.
- Fleet swap: Dan Sabia replaced with Live Knutsen, adding 5 years of fixed charter revenue.
- Contracted revenue pipeline: $870M (average 2.4 years duration), with options extending to 4.8 years.

**【Financial & Debt Management】**
- Debt repayment rate: ~$90M/year, with $93M due in 2025.
- Debt structure: 17/18 vessels secured, $883M of $910M debt secured by vessels.
- 2025 fixed charter coverage: 94%, 2026: 75% fixed (open percentage rises later in year).
- Refinancing strategy: proactive approach to debt maturities, with track record of successful renewals.

**【Q&A Highlights】**
- **Capital Allocation**: Focus on filling charter gaps (e.g., 2026 open periods) and accretive acquisitions, balanced with sustainable distribution.
- **Operational Efficiency**: OpEx decline driven by removal of smaller vessels (Dan Sabia, Cisne Knutsen).
- **Market Confidence**: Vessels meet demand specs, chartering team actively pursuing new contracts.
- **Dividend Policy**: Board considers long-term cash flow sustainability and accretive investments.
- **Debt Management**: Proactive refinancing plans for 2025 maturities, no immediate liquidity concerns.


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