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KNOT Offshore Partners LP (KNOP)
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KNOT Offshore Partners (KNOP) AI Stock Analysis

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KNOP

KNOT Offshore Partners

(NYSE:KNOP)

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Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
$10.50
▲(19.45% Upside)
KNOT Offshore Partners receives a strong score due to its solid financial performance, attractive valuation, and positive earnings call highlights. The company's strategic initiatives and high dividend yield further enhance its investment appeal, despite concerns over high leverage.

KNOT Offshore Partners (KNOP) vs. SPDR S&P 500 ETF (SPY)

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 charters of its vessels to major oil companies and other operators in the offshore oil and gas sector. The company typically enters into fixed-rate contracts, which provide stable cash flows and predictable earnings. Revenue is derived from the operational performance of the fleet, with earnings bolstered by a mix of time charters and spot market contracts. Additionally, strategic partnerships with leading oil and gas companies enhance its market position and contribute to its revenue stability. The company's financial health is further supported by its focus on fleet utilization and cost management, ensuring competitive pricing and operational efficiency.

KNOT Offshore Partners Earnings Call Summary

Earnings Call Date:Sep 26, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, high fleet utilization, successful expansion activities, and increased charter coverage. While there are ongoing concerns about debt obligations and older vessels, the overall outlook is positive with strategic initiatives like fleet expansion and a buyback program in place.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Revenues were $87.1 million, operating income of $22.2 million, and net income of $6.8 million. Adjusted EBITDA stood at $51.6 million, with available liquidity increasing by $4 million compared to the previous quarter.
High Fleet Utilization
Achieved 96.8% fleet utilization, taking into account the start of 2 drydockings.
Successful Fleet Expansion
Refinanced Tove Knutsen with a sale and leaseback transaction that netted $32 million in cash. Acquired Daqing Knutsen with a $95 million combination of cash and debt.
Increased Charter Coverage
Extended charter coverage through new agreements, including the Brasil Knutsen going on charter to Equinor and Repsol Sinopec extending the Raquel Knutsen charter through June 2028.
Initiation of Buyback Program
Initiated a $10 million unit buyback program, purchasing 226,000 common units at an average price of $7.24 per unit.
Negative Updates
Debt Obligations
Continuing to repay debt at $95 million or more per year, with an average margin on debt at 2.23% over SOFR.
Older Vessel Concerns
Concerns over older vessels such as Fortaleza and Recife, with discussions ongoing regarding their future use or potential disposal.
Company Guidance
During the KNOT Offshore Partners' second quarter 2025 earnings call, CEO Derek Lowe provided guidance on several key financial metrics and business developments. The company reported revenues of $87.1 million, operating income of $22.2 million, and net income of $6.8 million, with an adjusted EBITDA of $51.6 million. As of June 30, 2025, KNOT Offshore Partners had $104 million in available liquidity, comprising $66.3 million in cash and cash equivalents, and $38.5 million in undrawn credit facilities, reflecting a $4 million increase from the previous quarter. The company achieved a 96.8% utilization rate, accounting for two drydockings. A cash distribution of $0.026 per common unit was declared and paid in August. The partnership also announced a sale and leaseback of the Tove Knutsen, netting $32 million, and the acquisition of the Daqing Knutsen for $95 million, with a cash component of $25 million. The Daqing Knutsen is on a time charter with PetroChina until July 2027. Additionally, the company initiated a $10 million unit buyback program, purchasing 226,000 common units at an average price of $7.24 per unit. The fleet expanded to 19 vessels with an average age of 9.7 years, and the company targets debt repayment of $95 million or more per year. The shuttle tanker market is showing tightening conditions, with an extended backlog of $895 million in fixed contracts averaging 2.6 years.

KNOT Offshore Partners Financial Statement Overview

Summary
KNOT Offshore Partners shows solid financial health with consistent revenue growth and strong operational efficiency. The balance sheet reflects moderate leverage typical for the industry, but with a relatively low ROE. Cash flow generation is a significant strength, supporting the company's operations and financial stability. While profitability margins could be improved, the company is well-positioned to sustain its current trajectory.
Income Statement
72
Positive
KNOT Offshore Partners has demonstrated a steady increase in revenue, with a TTM revenue growth rate of 4.28% compared to the previous year. The gross profit margin for the TTM is 38.63%, indicating efficient cost management. However, the net profit margin is relatively low at 4.36%, suggesting potential challenges in controlling non-operating expenses. The EBIT margin of 23.51% and EBITDA margin of 57.58% reflect strong operational efficiency.
Balance Sheet
65
Positive
The company's debt-to-equity ratio is 1.54, indicating a moderate level of leverage, which is typical for the marine shipping industry. The return on equity (ROE) for the TTM is 2.31%, which is relatively low, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 37.31%, indicating a balanced capital structure with a reasonable proportion of equity financing.
Cash Flow
78
Positive
KNOT Offshore Partners has shown robust cash flow management, with a free cash flow growth rate of 6.67% in the TTM. The operating cash flow to net income ratio is 10.30, highlighting strong cash generation relative to net income. The free cash flow to net income ratio is 10.23, indicating efficient conversion of earnings into cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue326.00M312.63M290.72M268.58M281.13M279.22M
Gross Profit125.97M200.51M80.93M72.32M109.46M128.47M
EBITDA187.71M190.68M144.64M210.19M183.00M187.63M
Net Income14.21M14.06M-34.33M58.67M53.88M65.22M
Balance Sheet
Total Assets1.65B1.57B1.60B1.73B1.68B1.78B
Cash, Cash Equivalents and Short-Term Investments67.26M66.93M63.92M47.58M62.29M52.58M
Total Debt948.36M906.00M958.91M1.06B969.87M1.03B
Total Liabilities1.04B961.03M989.01M1.08B1.00B1.08B
Stockholders Equity616.11M611.13M607.48M652.21M673.01M697.55M
Cash Flow
Free Cash Flow145.28M136.20M128.86M97.63M154.88M168.90M
Operating Cash Flow146.37M137.15M131.64M100.94M166.41M169.24M
Investing Cash Flow559.00K-338.00K-2.78M-35.51M-11.54M-21.43M
Financing Cash Flow-129.70M-133.32M-112.51M-79.97M-145.15M-139.26M

KNOT Offshore Partners Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.79
Price Trends
50DMA
8.34
Positive
100DMA
7.56
Positive
200DMA
6.80
Positive
Market Momentum
MACD
0.11
Positive
RSI
52.79
Neutral
STOCH
71.16
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 8.79 is below the 20-day moving average (MA) of 8.81, above the 50-day MA of 8.34, and above the 200-day MA of 6.80, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 71.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNOP.

KNOT Offshore Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$314.09M9.105.61%1.18%14.11%1641.62%
69
Neutral
$1.58B3.5813.38%3.96%5.63%-17.54%
68
Neutral
kr991.58M14.775.85%-14.77%-44.86%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
64
Neutral
$1.33B4.579.89%0.44%-0.47%-22.23%
62
Neutral
$2.02B16.645.11%4.53%2.95%-61.74%
60
Neutral
$931.82M26.923.35%14.77%3.51%-74.09%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KNOP
KNOT Offshore Partners
8.79
2.66
43.39%
DAC
Danaos
85.94
7.24
9.20%
NMM
Navios Maritime Partners
45.00
-12.04
-21.11%
SFL
SFL Corporation
6.84
-2.81
-29.12%
SBLK
Star Bulk Carriers
17.45
-0.85
-4.64%
ECO
Okeanis Eco Tankers Corp.
31.09
3.55
12.90%

KNOT Offshore Partners Corporate Events

KNOT Offshore Partners Completes Strategic Share Sale in July 2025
Sep 29, 2025

On July 2, 2025, KNOT Offshore Partners LP completed a significant transaction involving the sale of shares in KNOT Shuttle Tankers 37 AS to KNOT Shuttle Tankers AS. This move is part of a strategic realignment, potentially impacting the company’s operational focus and financial structure. The transaction, valued at USD 95 million, reflects KNOT’s efforts to optimize its asset portfolio and strengthen its market position in the shuttle tanker sector.

KNOT Offshore Partners Reports Strong Q2 2025 Results and Strategic Developments
Sep 25, 2025

KNOT Offshore Partners LP reported strong financial performance for Q2 2025, with revenues of $87.1 million and a net income of $6.8 million. The company achieved nearly full fleet utilization and declared cash distributions for common and preferred units. Significant events included the acquisition of a new shuttle tanker, a unit buyback program, and various charter extensions. The company is optimistic about future growth, driven by increased offshore oil production in Brazil and the North Sea, and anticipates that new shuttle tanker orders will meet rising demand.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 15, 2025