Partnership Expects Favorable Outlook for Future Shipping Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy KNOP?
The company said, "As at December 31, 2025: the Partnership had charters with an average remaining fixed duration of 2.6 years, with the charterers of the Partnership's vessels having options to extend their charters by an additional 4.1 years on average and the Partnership had $929.8 million of remaining contracted forward revenue, excluding charterers' options and charters agreed or signed after that date. As at December 31, 2025, the nineteen vessels which comprised the Partnership's fleet had an average age of 10.2 years. During Q4 2025, fifteen of the vessels in our fleet operated in Brazil. The market for shuttle tankers in Brazil has continued to tighten, in particular for the Suezmax vessel class around which that market has increasingly consolidated, driven by a significant pipeline of new production growth over the coming years, a limited newbuild order book, and typical long-term project viability requiring a Brent oil price of only $35 per barrel. Following a protracted period of muted demand in the North Sea region, positive momentum has been regained with the 2025 activation and ramp-up of multiple FPSOs spanning from the UK North Sea to the Barents Sea. The North Sea development pipeline continues to expand as well, with the announcement of new discoveries and multi-year projects intended to further augment production across the region, including at both the Goliat FPSO and Johan Castberg FPSO. On October 31, 2025, the Partnership received an unsolicited non-binding proposal from KNOT, pursuant to which KNOT proposed to acquire through a wholly-owned subsidiary all publicly held common units of the Partnership in exchange for $10 in cash per unit. The Conflicts Committee of the Partnership's Board, which is comprised of only non-KNOT-affiliated directors, retained Evercore Group, Richards, Layton & Finger, and IGB Group as independent advisors to assist it in evaluating the KNOT Offer. The Conflicts Committee and its independent advisors reviewed the KNOT Offer carefully and held a series of discussions with KNOT regarding the potential transaction since receiving the proposal. Following such discussions, on March 19, the parties announced that they were not able to reach an agreement and have therefore terminated discussions regarding the KNOT Offer. Looking ahead, based on supply and demand factors with significant forward visibility and committed capital from industry participants, we believe that the overall medium and long-term outlook for the shuttle tanker market remains favourable. In the meantime, the Partnership intends to pursue long-term visibility from its charter contracts, build its liquidity, pursue accretive dropdown transactions supportive of long-term cash flow generation, and position itself to benefit from its market-leading role in an improving shuttle tanker market. The Partnership continues to believe that key components of its strategy and value proposition are accretive investment in the fleet and a long-term sustainable distribution."
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Analyst Views on KNOP
Wall Street analysts forecast KNOP stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 9.950
Low
10.00
Averages
10.00
High
10.00
Current: 9.950
Low
10.00
Averages
10.00
High
10.00
About KNOP
KNOT Offshore Partners LP is a United Kingdom-based company that owns, operates and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea. The Company's fleet consists of approximately 18 shuttle tankers, which vessels are designed to transport crude oil and condensates from offshore oil field installations to onshore terminals and refineries. Its shuttle tankers are equipped with sophisticated loading and dynamic positioning systems that allow the vessels to load cargo safely from oil field installations, in harsh weather conditions and where there are strong currents. The Company's vessels include Tove Knutsen, Synnove Knutsen, Lena Knutsen, Vigdis Knutsen, Anna Knutsen, Tordis Knutsen, Raquel Knutsen, Carmen Knutsen, Brasil Knutsen, Hilda Knutsen, Torill Knutsen, Ingrid Knutsen, Dan Sabia, Bodil Knutsen, Fortaleza Knutsen, Recife Knutsen, Dan Cisne, Windsor Knutsen, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KNOT Offshore Partners Reports Q4 2025 Financial Highlights
- Financial Performance Overview: KNOT Offshore Partners reported total revenues of $96.5 million for Q4 2025, with a net loss of $6.2 million due to a $20.3 million impairment on the Bodil Knutsen, although adjusted net income stood at $14.0 million, indicating operational resilience.
- Liquidity Position: As of December 31, 2025, the Partnership had $137.0 million in available liquidity, comprising $89.0 million in cash and cash equivalents and $48.0 million in undrawn revolving credit capacity, ensuring financial flexibility for future operations.
- Fleet Utilization Rates: The fleet operated at a remarkable 99.5% utilization for scheduled operations in Q4 2025, and 96.4% when accounting for scheduled drydocking, reflecting the company's excellence in scheduling and operational efficiency.
- Dividends and Buyback Program: The Partnership declared a quarterly cash distribution of $0.026 per common unit on January 7, 2026, and initiated a buyback program of up to $10 million in July 2025, demonstrating a strong commitment to shareholder returns.
See More
KNOT Offshore Partners Reports Q4 Loss Amid Impairment Charge
- Financial Performance: KNOT Offshore Partners reported a net loss of $6.2 million in Q4 2025, primarily due to a $20.3 million non-cash impairment related to the Bodil Knutsen vessel, indicating challenges in asset management.
- Revenue Growth: Despite the loss, the company achieved revenue of $96.49 million in Q4, representing a 5.7% year-over-year increase, suggesting some revenue growth potential in the current market environment.
- Liquidity Position: As of December 31, 2025, the company had $137.0 million in available liquidity, comprised of $89.0 million in cash and cash equivalents and $48.0 million in undrawn revolving credit capacity, demonstrating short-term financial stability.
- Operational Efficiency: The fleet operated at 99.5% utilization for scheduled operations in Q4 2025, and 96.4% when accounting for the scheduled drydocking of the Synnøve Knutsen, reflecting high operational efficiency in fleet management.
See More
Energy Stocks Mixed as NYSE Energy Sector Index Declines
- Market Performance: Energy stocks showed mixed results late Friday afternoon, with the NYSE Energy Sector Index declining by 0.4%, indicating a divergence in market sentiment that could affect investor confidence.
- Investor Reaction: Despite overall market volatility, some investors may seize this opportunity for bargain hunting, particularly against the backdrop of fluctuating energy prices, which could influence future investment strategies.
- Industry Dynamics: The performance of the energy sector is closely tied to the fluctuations in oil and gas prices, prompting investors to monitor global supply and demand changes that may impact energy stocks.
- Future Outlook: As market attention shifts towards renewable energy, traditional energy stocks may face challenges, necessitating investors to assess the implications of industry transformation on long-term investments.
See More
KNOT Offshore Partners Shares Drop 8.9% After Termination of Acquisition Talks
- Acquisition Talks Terminated: KNOT Offshore Partners announced the termination of acquisition discussions with Knutsen NYK Offshore Tankers, resulting in an 8.9% drop in post-market shares, reflecting market uncertainty regarding future growth prospects.
- Board Evaluation: KNOT Offshore stated that a board committee retained independent legal and financial advisors to evaluate the acquisition proposal; however, despite discussions, the parties could not reach an agreement, highlighting the complexities and challenges of the acquisition process.
- Background of Non-Agreement: Knutsen submitted an unsolicited offer in November to acquire all publicly traded units of KNOT Offshore for $10 each in cash, which, despite generating interest, failed to facilitate a deal, impacting investor confidence.
- Market Reaction Analysis: Following strong Q3 results, the market had anticipated a potentially more attractive acquisition offer for KNOT Offshore, but the termination of talks has led to investor doubts about future acquisition opportunities, potentially affecting the stability of the company's stock price.
See More
Mid-to-Low Cap Energy Stocks Earn A+ EPS Revision Ratings
- Analyst Rating Upgrades: Several mid-to-low cap energy stocks, including American Resources (AREC) and Black Stone Minerals (BSM), have received an A+ EPS Revision rating from analysts, indicating a significant increase in market confidence regarding their profitability outlook, which may attract more investor attention.
- Improved Earnings Expectations: CrossAmerica Partners LP (CAPL) and Delek US Holdings (DK) also achieved an A+ rating, reflecting analysts' upward revisions of their earnings forecasts, suggesting that their fundamentals are improving and could drive stock price increases.
- Industry Trend Analysis: VAALCO Energy (EGY) and KNOT Offshore Partners LP (KNOP) have also earned A+ ratings, indicating strong earnings momentum among low-cap energy stocks as the earnings season approaches, potentially eliciting positive investor reactions.
- Market Focus: Liberty Energy (LBRT) and Nordic American Tankers (NAT) receiving A+ ratings further demonstrate analysts' optimism about their earnings prospects, which could lead to increased capital inflows into these stocks and enhance market activity.
See More
KNOT Offshore Partners Declares $0.026 Cash Distribution for Q4 2025
- Cash Distribution Announcement: KNOT Offshore Partners has declared a quarterly cash distribution of $0.026 per common unit, scheduled for payment on February 5, 2026, to all unitholders of record as of January 26, 2026, aimed at enhancing investor confidence.
- Financial Transparency: The company operates as a publicly traded master limited partnership but is classified as a corporation for U.S. federal tax purposes, issuing Form 1099 to its unitholders, which simplifies tax processing for investors.
- Market Positioning: KNOT Offshore focuses on owning, operating, and acquiring shuttle tankers under long-term charters primarily in offshore oil production regions of Brazil and the North Sea, highlighting its strategic importance in the global energy transportation market.
- Forward-Looking Statements: The company’s press release includes forward-looking statements that underscore potential risks and uncertainties, indicating management's cautious outlook on future performance and advising investors to consider factors that may affect future results.
See More
KNOT Offshore Partners Reports Q4 2025 Financial Highlights
- Financial Performance Overview: KNOT Offshore Partners reported total revenues of $96.5 million for Q4 2025, with a net loss of $6.2 million due to a $20.3 million impairment on the Bodil Knutsen, although adjusted net income stood at $14.0 million, indicating operational resilience.
- Liquidity Position: As of December 31, 2025, the Partnership had $137.0 million in available liquidity, comprising $89.0 million in cash and cash equivalents and $48.0 million in undrawn revolving credit capacity, ensuring financial flexibility for future operations.
- Fleet Utilization Rates: The fleet operated at a remarkable 99.5% utilization for scheduled operations in Q4 2025, and 96.4% when accounting for scheduled drydocking, reflecting the company's excellence in scheduling and operational efficiency.
- Dividends and Buyback Program: The Partnership declared a quarterly cash distribution of $0.026 per common unit on January 7, 2026, and initiated a buyback program of up to $10 million in July 2025, demonstrating a strong commitment to shareholder returns.
See More
KNOT Offshore Partners Reports Q4 Loss Amid Impairment Charge
- Financial Performance: KNOT Offshore Partners reported a net loss of $6.2 million in Q4 2025, primarily due to a $20.3 million non-cash impairment related to the Bodil Knutsen vessel, indicating challenges in asset management.
- Revenue Growth: Despite the loss, the company achieved revenue of $96.49 million in Q4, representing a 5.7% year-over-year increase, suggesting some revenue growth potential in the current market environment.
- Liquidity Position: As of December 31, 2025, the company had $137.0 million in available liquidity, comprised of $89.0 million in cash and cash equivalents and $48.0 million in undrawn revolving credit capacity, demonstrating short-term financial stability.
- Operational Efficiency: The fleet operated at 99.5% utilization for scheduled operations in Q4 2025, and 96.4% when accounting for the scheduled drydocking of the Synnøve Knutsen, reflecting high operational efficiency in fleet management.
See More
Energy Stocks Mixed as NYSE Energy Sector Index Declines
- Market Performance: Energy stocks showed mixed results late Friday afternoon, with the NYSE Energy Sector Index declining by 0.4%, indicating a divergence in market sentiment that could affect investor confidence.
- Investor Reaction: Despite overall market volatility, some investors may seize this opportunity for bargain hunting, particularly against the backdrop of fluctuating energy prices, which could influence future investment strategies.
- Industry Dynamics: The performance of the energy sector is closely tied to the fluctuations in oil and gas prices, prompting investors to monitor global supply and demand changes that may impact energy stocks.
- Future Outlook: As market attention shifts towards renewable energy, traditional energy stocks may face challenges, necessitating investors to assess the implications of industry transformation on long-term investments.
See More
KNOT Offshore Partners Shares Drop 8.9% After Termination of Acquisition Talks
- Acquisition Talks Terminated: KNOT Offshore Partners announced the termination of acquisition discussions with Knutsen NYK Offshore Tankers, resulting in an 8.9% drop in post-market shares, reflecting market uncertainty regarding future growth prospects.
- Board Evaluation: KNOT Offshore stated that a board committee retained independent legal and financial advisors to evaluate the acquisition proposal; however, despite discussions, the parties could not reach an agreement, highlighting the complexities and challenges of the acquisition process.
- Background of Non-Agreement: Knutsen submitted an unsolicited offer in November to acquire all publicly traded units of KNOT Offshore for $10 each in cash, which, despite generating interest, failed to facilitate a deal, impacting investor confidence.
- Market Reaction Analysis: Following strong Q3 results, the market had anticipated a potentially more attractive acquisition offer for KNOT Offshore, but the termination of talks has led to investor doubts about future acquisition opportunities, potentially affecting the stability of the company's stock price.
See More
Mid-to-Low Cap Energy Stocks Earn A+ EPS Revision Ratings
- Analyst Rating Upgrades: Several mid-to-low cap energy stocks, including American Resources (AREC) and Black Stone Minerals (BSM), have received an A+ EPS Revision rating from analysts, indicating a significant increase in market confidence regarding their profitability outlook, which may attract more investor attention.
- Improved Earnings Expectations: CrossAmerica Partners LP (CAPL) and Delek US Holdings (DK) also achieved an A+ rating, reflecting analysts' upward revisions of their earnings forecasts, suggesting that their fundamentals are improving and could drive stock price increases.
- Industry Trend Analysis: VAALCO Energy (EGY) and KNOT Offshore Partners LP (KNOP) have also earned A+ ratings, indicating strong earnings momentum among low-cap energy stocks as the earnings season approaches, potentially eliciting positive investor reactions.
- Market Focus: Liberty Energy (LBRT) and Nordic American Tankers (NAT) receiving A+ ratings further demonstrate analysts' optimism about their earnings prospects, which could lead to increased capital inflows into these stocks and enhance market activity.
See More
KNOT Offshore Partners Declares $0.026 Cash Distribution for Q4 2025
- Cash Distribution Announcement: KNOT Offshore Partners has declared a quarterly cash distribution of $0.026 per common unit, scheduled for payment on February 5, 2026, to all unitholders of record as of January 26, 2026, aimed at enhancing investor confidence.
- Financial Transparency: The company operates as a publicly traded master limited partnership but is classified as a corporation for U.S. federal tax purposes, issuing Form 1099 to its unitholders, which simplifies tax processing for investors.
- Market Positioning: KNOT Offshore focuses on owning, operating, and acquiring shuttle tankers under long-term charters primarily in offshore oil production regions of Brazil and the North Sea, highlighting its strategic importance in the global energy transportation market.
- Forward-Looking Statements: The company’s press release includes forward-looking statements that underscore potential risks and uncertainties, indicating management's cautious outlook on future performance and advising investors to consider factors that may affect future results.
See More
