KNOT Offshore Partners (KNOP) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $92 million, with operating income of $14.7 million, net income of $2.6 million, and Adjusted EBITDA of $56.5 million.

• Fleet utilization was 97.2% before dry docking and 92% after scheduled dry dockings.

• Available liquidity increased to $140.7 million as of March 31, 2026, up $3.7 million from December 2025.

• A quarterly cash distribution of $0.05 per unit was declared and paid, marking an increase after a period of low payouts.

• The unsolicited $10 per unit buyout offer from Knutsen NYK was terminated after negotiations.

Financial highlights

• Revenues for Q1 2026 were $92 million, with operating income of $14.7 million and net income of $2.6 million.

• Adjusted EBITDA totaled $56.5 million.

• Available liquidity as of March 31, 2026, was $140.7 million, including $92.7 million in cash and $48 million undrawn credit.

• Debt repayments continue at approximately $90 million per year.

• Net income for Q1 2026 was $2.6 million, compared to a net loss of $6.2 million in Q4 2025.

Outlook and guidance

• Management anticipates gradual, sustainable increases in distributions, supported by accretive drop-downs and a strong charter market.

• No specific guidance on the magnitude of future distribution increases; decisions are made quarterly by the board.

• Market outlook remains constructive, with expectations for continued strong utilization and backlog.

• Fully chartered for H1 2026, with 97% coverage for H2 2026 and 81% for 2027 after scheduled drydockings.

• $857.9 million in remaining contracted forward revenue as of March 31, 2026.