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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. KNOP's Q3 2025 Earnings: A Closer Look at Financials and Strategic Moves

KNOT Offshore Partners (KNOP) reported a robust Q3 2025, with revenues reaching $96.9 million, operating income of $30.6 million, and net income of $15.1 million. The adjusted EBITDA was $61.6 million, indicating a healthy operational performance. Earnings per share (EPS) came in at $0.45, significantly beating estimates of $0.13. The company's financial performance was bolstered by its fleet operations, with an average fleet age of 10 years and a backlog of $963 million in fixed contracts, averaging 2.6 years.

Publication Date: Dec -07

📋 Highlights
  • Strong Financial Performance:: Q3 2025 reported $96.9M revenue, $30.6M operating income, $15.1M net income, and $61.6M adjusted EBITDA.
  • Liquidity Position:: $125.2M available liquidity, including $77.2M cash and $48M undrawn credit facilities as of September 30, 2025.
  • Strategic Asset Acquisition:: Purchased Daqing Knutsen from KNOT with a 7-year higher-rate guarantee, enhancing long-term revenue stability.
  • Shareholder Value Initiatives:: Completed $3M buyback of 385K common units and $32M capital raise via Tove Knutsen sale-and-leaseback.
  • Charter Contract Securitization:: Extended charters with Shell and Equinor, and maintained $963M fixed-contract backlog averaging 2.6 years.

Liquidity and Capital Structure

As of September 30, 2025, KNOP had $125.2 million in available liquidity, comprising $77.2 million in cash and $48 million in undrawn credit facilities. The company continued to optimize its capital structure through strategic refinancings, including a $25 million revolving credit facility with NTT and a sale and leaseback for the Tove Knutsen, which increased capital by $32 million.

Operational Highlights and Market Outlook

The shuttle tanker market has been tightening in Brazil and the North Sea, driven by FPSO start-ups and ramp-ups. KNOP secured charter extensions with major clients like Shell and Equinor, demonstrating its strong market position. The company's fleet of 19 vessels is well-positioned to capitalize on the improving market conditions.

Valuation and Growth Prospects

With a P/E Ratio of 10.86 and an EV/EBITDA of 5.86, KNOP's valuation appears reasonable given its growth prospects. Analysts estimate next year's revenue growth at 1.9%. The company's ability to maintain its G&A expenses around $1.6 million per quarter is expected to support its profitability. The current dividend yield of 0.97% adds to the attractiveness of the stock.

Strategic Developments

KNOP received an unsolicited offer from its sponsor, KNOT, to buy publicly owned common units for $10 per unit. The Conflicts Committee is evaluating this offer, with a potential definitive agreement requiring a proxy and unitholder vote, likely in the first quarter. Additionally, KNOP established a buyback program, purchasing nearly 385,000 common units at an average price of $7.87 per unit, indicating confidence in its valuation.

3. NewsRoom

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

Dec -05

Source: seekingalpha.com

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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

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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Stock-Card
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