KNOT Offshore Partners (KNOP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $84.0 million, operating income $23.4 million, net income $7.6 million, and Adjusted EBITDA $52.2 million.

• Fleet utilization was 99.5% for scheduled operations and 96.9% overall; cash distribution of $0.026 per common unit paid in May 2025.

• Fleet expanded to 18 vessels (average age 9.8 years) after a swap: Dan Sabia sold, Lever/Live Knutsen acquired.

• Contracted revenue backlog stands at $854 million, with average firm charter duration of 2.3 years and options for 4.7 more.

• 96% of 2025 and 75% of 2026 are covered by fixed charters, supporting long-term earnings visibility.

Financial highlights

• Q1 2025 revenues: $84.0 million; operating income: $23.4 million; net income: $7.6 million; Adjusted EBITDA: $52.2 million.

• Available liquidity at March 31, 2025: $100.8 million (cash $67.3 million, undrawn credit $33.5 million).

• Debt outstanding: $949 million, with $96 million due within 12 months; average margin 2.23% over SOFR.

• Debt repayments are approximately $90 million per year, with strong run-rate of paydown.

• Q1 2025 revenue and EBITDA declined from Q4 2024 due to one-off insurance proceeds in the prior quarter.

Outlook and guidance

• Shuttle tanker market remains tight, with strong demand in Brazil and the North Sea, and limited newbuild supply.

• Contracted revenue backlog is $854 million, with average fixed charter duration of 2.3 years and options for 4.7 years.

• 96% of 2025 and 75% of 2026 are covered by fixed charters, though open positions increase later in 2026.

• Management expects continued tightness in shuttle tanker supply and is optimistic about securing additional charter coverage.

• Plans to pursue dropdown transactions and accretive fleet investments to support long-term cash flow and potential distribution increases.