KNOT Offshore Partners (KNOP) investor relations material

Market overview and industry trends

• Shuttle tanker market is niche and highly concentrated, with both shipowners and charterers operating in a stable, long-term environment.

• Offshore oil extraction is gaining market share over traditional onshore, with FPSOs serviced by shuttle tankers remaining dominant versus new pipeline construction.

• Brazil and North Sea offshore buildouts are accelerating, driving demand for shuttle tankers.

• The shuttle tanker orderbook is non-speculative and insufficient to meet anticipated demand.

• FPSO fleet expansion globally, especially in Brazil, is a strong proxy for shuttle tanker demand, with a projected 125% increase from 2018 to 2028.

Business model and operational highlights

• Fixed-rate charter contracts provide revenue stability, unaffected by oil price or customer utilization.

• Shuttle tankers offer flexibility, better economics, and lower environmental impact compared to pipelines.

• Contracts are primarily long-term, minimizing charter market volatility and speculative ordering.

• Shuttle tankers are integral to offshore projects, recently servicing over 90% of offshore production in Brazil.

• Newbuilds typically secure 5-10 year charters, followed by shorter extensions and spot opportunities.

Strategic positioning and partnerships

• The group operates a young fleet with strong future earnings potential and maintains relationships with major energy companies.

• Knutsen Group and NYK Group, both with long histories and global reach, jointly control the sponsor entity, providing technical, financial, and operational support.

• KNOT is obligated to offer vessels with 5+ year contracts to the partnership, ensuring access to high-quality assets.

• 15 out of 19 vessels are positioned in the fast-growing Brazilian market, reinforcing sector leadership.