KNOT Offshore Partners (KNOP) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues were $96.9 million, operating income $30.6 million, net income $15.1 million, and Adjusted EBITDA $61.6 million, with 99.9% fleet utilization and a $0.026 per unit cash distribution paid in November.

• Received an unsolicited, non-binding $10 per unit buyout offer from sponsor KNOT, currently under review by the Conflicts Committee.

• Completed acquisition of Daqing Knutsen, sale-leaseback of Tove Knutsen, and multiple refinancing transactions.

• Available liquidity at quarter end was $125.2 million, up $20.4 million from Q2, with $77.2 million in cash and $48 million in undrawn credit.

• Buyback program completed, repurchasing nearly 395,000 units at an average $7.87 per unit, totaling just over $3 million.

Financial highlights

• Q3 2025 revenues were $96.9 million, operating income $30.6 million, net income $15.1 million, and Adjusted EBITDA $61.6 million.

• Revenues increased $9.8 million sequentially from Q2 2025, mainly from the Daqing Knutsen addition.

• Available liquidity at quarter-end was $125.2 million, with $77.2 million in cash and $48 million in undrawn credit.

• Declared a cash distribution of $0.026 per common unit, paid in November.

• Q3 2025 net income increased by $18.9 million year-over-year, reversing a net loss in Q3 2024.

Outlook and guidance

• Shuttle tanker market tightening in Brazil and the North Sea, driven by FPSO startups and ramp-ups, with strong demand and limited newbuilds.

• Petrobras' five-year plan and major pre-salt projects support continued strong demand for shuttle tankers.

• 93% of vessel time in 2026 and 69% in 2027 covered by fixed contracts; rises to 98% and 88% if all options are exercised.

• 100% charter coverage secured for Q4 2025 (excluding drydockings), and approximately 93% for 2026.

• Open days in 2026 and 2027 present upside potential if current market momentum persists.