KNOT Offshore Partners (KNOP) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues reached $87.1 million, with operating income of $22.2 million and net income of $6.8 million.

• Adjusted EBITDA was $51.6 million, and available liquidity at quarter end was $104.8 million, including $66.3 million in cash.

• Fleet utilization was 100% for scheduled operations (96.8% overall), reflecting strong operational performance despite dry dockings.

• A cash distribution of $0.026 per common unit was declared and paid in August 2025.

• Charter coverage was extended, and the fleet grew to 19 vessels with an average age reduced to 9.7 years after the Daqing Knutsen acquisition.

Financial highlights

• Revenues for Q2 2025 were $87.1 million, up from $84.0 million in Q1 2025.

• Operating income was $22.2 million, and net income was $6.8 million, a significant improvement from Q2 2024.

• Adjusted EBITDA reached $51.6 million.

• Available liquidity at June 30, 2025, was $104.8 million, including $66.3 million in cash and $38.5 million undrawn credit.

• Total assets stood at $1.62 billion, with total liabilities of $1.00 billion.

Outlook and guidance

• 89% of vessel time in 2026 is covered by fixed contracts, with strong likelihood of charterers exercising options.

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

• Medium-term shortage of shuttle tankers expected as new FPSO units come online.

• Focus remains on safe operations, high utilization, and opportunistic capital deployment.

• Plans to pursue further dropdown transactions and long-term charters to enhance cash flow and fleet value.