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KNOT Offshore Partners (KNOP)
NYSE:KNOP
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KNOT Offshore Partners
(NYSE:KNOP)
70Neutral
KNOT Offshore Partners (KNOP) vs. S&P 500 (SPY)
Market Cap
$227.10M
Dividend Yield1.6%
Average Volume (3M)110.22K
Price to Earnings (P/E)31.3
Beta (1Y)0.02
Revenue Growth9.59%
EPS GrowthN/A
CountryUS
Employees1
SectorIndustrials
Sector Strength74
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.41
Shares Outstanding34,045,082
10 Day Avg. Volume55,673
30 Day Avg. Volume110,225
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.77
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market Cap4.89
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.54
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.35Price Target Upside90.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
KNOT Offshore Partners Business Overview & Revenue Model
Company DescriptionKNOT 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.
How the Company Makes MoneyKNOT Offshore Partners generates revenue primarily through long-term time-charter contracts with major oil companies, which provide stable and predictable cash flows. These contracts typically last between three to five years, with options for extension, ensuring a steady income. The company benefits from its strategic partnerships with oil majors, securing a consistent demand for its services. KNOP's revenue model is significantly supported by the specialized nature of shuttle tankers, which are essential for transporting oil from offshore fields where pipeline infrastructure is not feasible. Additionally, the company focuses on maintaining high fleet utilization rates and operational efficiency, contributing to its profitability.
KNOT Offshore Partners Financial Statement Overview
Summary
KNOT Offshore Partners shows solid revenue growth and strong cash flow performance, contributing to a stable financial outlook. However, high leverage and a low net profit margin pose potential risks.Income Statement
KNOT Offshore Partners experienced a strong revenue growth of 7.55% in 2024. Gross profit margin improved significantly due to higher gross profit, reaching approximately 64.14%. However, net profit margin remains low at 4.5%, indicating potential efficiency issues despite overall revenue growth. The EBIT and EBITDA margins are robust at 23.33% and 61.91%, respectively, showing good operational health.70
Positive
Balance Sheet
The company exhibits a high debt-to-equity ratio of 1.48, suggesting significant leverage that could pose financial risks. However, the return on equity (ROE) is relatively low at 2.3%, indicating limited returns on equity investment. The equity ratio stands at 38.88%, showing moderate capital structure stability but with room for improvement in reducing leverage.60
Neutral
Cash Flow
Cash flow statements reveal healthy free cash flow growth of 5.69% in 2024. The operating cash flow to net income ratio is high at 9.75, indicating strong cash generation relative to net income. The free cash flow to net income ratio is exceptionally high at 9.68, reflecting effective cash management and operational efficiency.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 312.63M | 290.72M | 268.58M | 281.13M | 279.22M | Gross Profit |
| 200.51M | 80.93M | 72.32M | 109.46M | 128.47M | EBIT |
| 72.92M | 25.14M | 66.22M | 101.99M | 123.08M | EBITDA |
| 193.48M | 144.64M | 210.19M | 183.00M | 187.63M | Net Income Common Stockholders |
| 14.06M | -34.33M | 58.67M | 53.88M | 65.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 66.93M | 63.92M | 47.58M | 62.29M | 52.58M | Total Assets |
| 1.57B | 1.60B | 1.73B | 1.68B | 1.78B | Total Debt |
| 906.00M | 958.91M | 1.06B | 969.87M | 1.03B | Net Debt |
| 839.07M | 894.99M | 1.01B | 907.57M | 979.25M | Total Liabilities |
| 961.03M | 989.01M | 1.08B | 1.00B | 1.08B | Stockholders Equity |
| 611.13M | 607.48M | 566.28M | 599.12M | 631.08M |
| Cash Flow | Free Cash Flow | |||
| 136.20M | 128.86M | 97.63M | 154.88M | 168.90M | Operating Cash Flow |
| 137.15M | 131.64M | 100.94M | 166.41M | 169.24M | Investing Cash Flow |
| -338.00K | -2.78M | -35.51M | -11.54M | -21.43M | Financing Cash Flow |
| -133.32M | -112.51M | -79.97M | -145.15M | -139.26M |
KNOT Offshore Partners Technical Analysis
Positive
6.50
Price Trends
6.04
Positive
5.87
Positive
6.28
Positive
Market Momentum
0.06
Positive
54.01
Neutral
66.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNOP, the sentiment is Positive. The current price of 6.5 is below the 20-day moving average (MA) of 6.56, above the 50-day MA of 6.04, and above the 200-day MA of 6.28, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 66.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNOP.
KNOT Offshore Partners Risk Analysis
KNOT Offshore Partners disclosed 68 risk factors in its most recent earnings report. KNOT Offshore Partners reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KNOT Offshore Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $200.24M | 2.79 | 11.88% | ― | 16.54% | 42.56% | |
71 Outperform | $121.02M | 2.74 | 16.96% | 11.08% | 51.91% | 2984.06% | |
70 Outperform | $282.20M | 6.85 | 7.69% | 9.48% | 7.46% | 8.41% | |
70 Neutral | $227.10M | 31.27 | 2.31% | 1.60% | 9.59% | ― | |
66 Neutral | $355.81M | 4.07 | 11.99% | 5.90% | 8.17% | 35.92% | |
63 Neutral | $4.27B | 11.36 | 5.38% | 214.64% | 4.14% | -9.01% | |
55 Neutral | $170.18M | 25.00 | 2.56% | 11.56% | -12.93% | -86.34% |
* Industrials Sector Average
Performance Comparison
KNOP
KNOT Offshore Partners
6.43
1.17
22.24%
DSX
Diana Shipping
1.46
-1.33
-47.67%
SB
Safe Bulkers
3.38
-1.53
-31.16%
SHIP
Seanergy Maritime
5.79
-2.91
-33.45%
GASS
StealthGas
5.40
-0.80
-12.90%
PANL
Pangaea Logistics Solutions
4.06
-2.70
-39.94%
KNOT Offshore Partners Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2024)
| % Change Since: 15.86%|
Next Earnings Date:May 21, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with strong financial performance, high operational efficiency, and a positive market outlook. However, there are challenges in refinancing debt and securing future charter coverage.Q4-2024 Updates
Positive Updates
Strong Financial Performance in Q4 2024
Revenues were $91.3 million, operating income $34.7 million, net income $23.3 million, and adjusted EBITDA was $63.1 million. The partnership closed Q4 with $90 million in available liquidity.
High Utilization and Operational Efficiency
The company operated at 98.3% utilization with no impact from planned drydocking, indicating high operational efficiency.
Positive Market Outlook and Upcoming Projects
Significant growth is anticipated in production in fields serviced by shuttle tankers, especially in Brazil and the North Sea, with new FPSOs starting production.
Strong Contracted Revenue Position
The partnership has a strong contracted revenue position of $870 million at the end of Q4, with average contract durations of 2.4 years and additional charterers' options averaging 4.8 years.
Successful Vessel Swap
The swap of the Dan Sabia for Live Knutsen brought nearly 5 years of fixed or guaranteed future charter revenue, enhancing fleet growth without new funding.
Insurance Claim Settlement
Closeout of the insurance claim for Torill Knutsen totaling $6 million was completed, providing financial closure on this matter.
Negative Updates
Debt Facilities Moving to Current Liabilities
Four debt facilities moved from long-term to current liabilities due to upcoming maturities, requiring attention to refinancing.
Future Charter Coverage Concerns
While 94% of 2025 is covered by fixed charters, coverage drops to 75% for 2026, indicating the need for ongoing commercial efforts to secure future contracts.
Market Volatility Concerns
Acknowledgment of a more volatile market environment, which could impact debt renegotiations and future operations.
Company Guidance
In the KNOT Offshore Partners Fourth Quarter 2024 earnings call, CEO and CFO Derek Lowe provided comprehensive guidance, highlighting financial metrics and operational achievements. The company reported revenues of $91.3 million, operating income of $34.7 million, and a net income of $23.3 million for Q4, with an adjusted EBITDA of $63.1 million. KNOT Offshore concluded the quarter with $90 million in available liquidity, comprising $67 million in cash and cash equivalents and $23 million in undrawn credit facilities. The company achieved a 98.3% utilization rate, with no planned drydocking affecting vessel availability. A cash distribution of USD 0.026 per common unit was declared, paid in February. The partnership's contracted revenue stood at $870 million, with fixed contracts averaging 2.4 years in duration and charterers' options averaging an additional 4.8 years. Financial resilience was emphasized, with a debt paydown rate of $90 million annually and strategic asset swaps enhancing fleet growth without new funding. The outlook remains positive, with expected growth in shuttle tanker demand, driven by new FPSO deployments in Brazil and the North Sea.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.