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KNOT Offshore Partners (KNOP)
NYSE:KNOP
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KNOT Offshore Partners
(NYSE:KNOP)
Rating:77Outperform
Price Target:
$8.50
▲(17.24% Upside)
KNOT Offshore Partners (KNOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$253.30M
Dividend Yield1.4%
Average Volume (3M)57.42K
Price to Earnings (P/E)17.5
Beta (1Y)-0.06
Revenue Growth10.07%
EPS GrowthN/A
CountryUS
Employees1
SectorEnergy
Sector Strength41
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.22
Shares Outstanding34,045,082
10 Day Avg. Volume48,076
30 Day Avg. Volume57,420
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap4.79
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit9.64
Enterprise Value/Ebitda6.47
Forecast
1Y Price Target
$10.25Price Target Upside41.38% 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 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:May 21, 2025
(Q1-2025)
| % Change Since: 11.88%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
KNOT Offshore Partners has delivered strong revenue and utilization rates, supported by a positive market outlook and successful operational strategies. However, the need to manage significant debt levels and expiring interest rate hedges, along with modest dividend payments, present challenges.Q1-2025 Updates
Positive Updates
Strong Revenue and Utilization
KNOT Offshore Partners reported Q1 2025 revenues of $84 million with an impressive 99.5% utilization rate, excluding dry dockings.
Positive Market Outlook
The company anticipates significant growth in shuttle tanker demand, driven by new FPSO projects in Brazil and the North Sea.
Strong Contracted Revenue
KNOT has a strong contracted revenue position of $854 million with an average contract duration of 2.3 years.
Successful Vessel Swap
The swap of Dan Sabia for Live Knutsen was completed, enhancing the fleet and operational capacity.
Negative Updates
Debt Levels and Refinancing Needs
The company took on $73 million in debt from a vessel acquisition, raising long-term debt by $47 million. Refinancing is needed for significant balloon payments due in 2025 and 2026.
Interest Rate Hedge Expiry
Interest rate hedges will expire over the next 1.5 years, potentially increasing interest expenses.
Limited Dividend Increase
Cash distribution remains low at $0.026 per common unit, with no immediate plans for significant increases.
Company Guidance
During KNOT Offshore Partners' First Quarter 2025 earnings call, guidance was provided on various financial metrics and operational updates. The partnership reported revenues of $84 million, an operating income of $23.4 million, and a net income of $7.6 million. Adjusted EBITDA was $52.2 million, with available liquidity closing at $101 million, comprising $67 million in cash and cash equivalents, plus $34 million in undrawn capacity on credit facilities. The utilization rate was 99.5%, considering two dry dockings, leading to an overall utilization of 96.9%. A cash distribution of $0.026 per common unit was declared, paid in early May. The contracted revenue position was strong at $854 million at the end of Q1, with fixed contracts averaging 2.3 years and additional options averaging 4.7 years. The partnership anticipates a $90 million debt paydown annually and sees potential growth opportunities in the Brazilian market due to the demand for shuttle tankers. Additionally, KNOT is focused on refinancing several facilities due this year while maintaining a robust financial and operational performance.KNOT Offshore Partners Financial Statement Overview
Summary
KNOT Offshore Partners demonstrates solid financial health with consistent revenue growth and strong operational efficiency. While the balance sheet reflects moderate leverage typical for the industry, the low ROE suggests limited profitability relative to shareholder equity. Robust cash flow generation supports financial stability, though profitability margins could be improved.Income Statement
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.80
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 |
| EBITDA | 190.68M | 144.64M | 210.19M | 183.00M | 187.63M |
| Net Income | 14.06M | -34.33M | 58.67M | 53.88M | 65.22M |
Balance Sheet | |||||
| Total Assets | 1.57B | 1.60B | 1.73B | 1.68B | 1.78B |
| Cash, Cash Equivalents and Short-Term Investments | 66.93M | 63.92M | 47.58M | 62.29M | 52.58M |
| Total Debt | 906.00M | 958.91M | 1.06B | 969.87M | 1.03B |
| 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
7.25
Price Trends
6.85
Positive
6.67
Positive
6.19
Positive
Market Momentum
0.07
Negative
58.40
Neutral
60.32
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 7.25 is above the 20-day moving average (MA) of 7.03, above the 50-day MA of 6.85, and above the 200-day MA of 6.19, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $253.30M | 17.50 | 2.33% | 1.40% | 10.07% | ― | |
76 Outperform | $152.38M | 9.64 | 5.93% | 9.05% | 1.66% | -46.13% | |
75 Outperform | $257.00M | 3.67 | 10.95% | ― | 14.08% | 28.84% | |
73 Outperform | $436.91M | 10.00 | 6.58% | 4.71% | -9.65% | -46.46% | |
67 Neutral | $330.78M | 23.20 | 2.37% | 6.90% | 15.09% | -71.58% | |
65 Neutral | $14.84B | 8.62 | 2.77% | 5.45% | 4.51% | -62.52% | |
61 Neutral | $181.76M | 12.04 | 4.23% | 6.77% | -4.90% | 21.09% |
* Energy Sector Average
Performance Comparison
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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.