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KNOT Offshore Partners (KNOP)
NYSE:KNOP
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KNOT Offshore Partners
(NYSE:KNOP)
Rating:66Neutral
Price Target:―
KNOT Offshore Partners (KNOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$226.40M
Dividend Yield1.6%
Average Volume (3M)54.84K
Price to Earnings (P/E)15.6
Beta (1Y)-0.06
Revenue Growth10.07%
EPS GrowthN/A
CountryUS
Employees1
SectorIndustrials
Sector Strength90
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.22
Shares Outstanding34,045,082
10 Day Avg. Volume60,024
30 Day Avg. Volume54,839
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.37
Price to Sales (P/S)0.00
P/FCF Ratio1.67
Enterprise Value/Market Cap4.71
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit11.27
Enterprise Value/Ebitda1.61
Forecast
1Y Price Target
$12.35Price Target Upside90.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
KNOT Offshore Partners Business Overview & Revenue Model
Company DescriptionKNOT Offshore Partners (KNOP) is a leading limited partnership company focused on owning, operating, and acquiring shuttle tankers on long-term charters in the offshore oil production regions of the North Sea and Brazil. The company plays a crucial role in the transportation of crude oil from offshore oil fields to onshore terminals and refineries. KNOP's fleet of shuttle tankers is designed to operate in harsh weather conditions and is equipped with advanced technology to ensure safe and efficient operations.
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, with a stable financial outlook. However, high leverage and a low net profit margin highlight potential risks. The balance sheet stability is moderate, with opportunities to enhance equity and reduce debt.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 |
| 190.68M | 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
Negative
6.48
Price Trends
6.44
Negative
6.04
Positive
6.18
Positive
Market Momentum
0.04
Positive
43.30
Neutral
31.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNOP, the sentiment is Negative. The current price of 6.48 is below the 20-day moving average (MA) of 6.55, above the 50-day MA of 6.44, and above the 200-day MA of 6.18, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 31.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
Outbreaks of epidemics and pandemics may adversely affect our business. Q4, 2023
KNOT Offshore Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $197.47M | 2.70 | 11.88% | ― | 16.54% | 42.56% | |
72 Outperform | $290.70M | 12.98 | 4.05% | 8.47% | 13.10% | -54.75% | |
71 Outperform | $123.95M | 2.81 | 16.96% | 10.71% | 51.91% | 2984.06% | |
68 Neutral | $382.13M | 5.42 | 9.82% | 5.35% | -2.98% | -0.96% | |
66 Neutral | $226.40M | 15.64 | 2.33% | 1.60% | 10.07% | ― | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
60 Neutral | $173.66M | 25.51 | 2.56% | 11.33% | -12.93% | -86.34% |
* Industrials Sector Average
Performance Comparison
KNOP
KNOT Offshore Partners
6.30
0.32
5.35%
DSX
Diana Shipping
1.43
-1.52
-51.53%
SB
Safe Bulkers
3.66
-1.55
-29.75%
SHIP
Seanergy Maritime
5.93
-5.08
-46.14%
GASS
StealthGas
5.34
-2.03
-27.54%
PANL
Pangaea Logistics Solutions
4.60
-2.75
-37.41%
KNOT Offshore Partners Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| % Change Since: -0.46%|
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.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.