KNOT Offshore Partners (KNOP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues were $96.8 million, operating income $15.6 million, net income $3.4 million, and adjusted EBITDA $57.6 million, with utilization at 96.8% (92.4% including drydocking).

• Available liquidity at quarter end was $143.3 million, up $2.6 million from March 31, with $95.3 million in cash and $48 million undrawn credit.

• Declared a cash distribution of $0.075 per common unit for Q2 2026, up from $0.05 in the prior quarter.

• Acquired Hedda Knutsen for a net cash cost of $24.4 million, expanding the fleet and reducing average vessel age; vessel on long-term charter to Petrobras.

• Maintained a constructive backlog and market outlook, with $881.2 million in fixed contracts averaging 2.5 years in duration.

Financial highlights

• Revenues for Q2 2026 were $96.8 million, operating income $15.6 million, net income $3.4 million, and adjusted EBITDA $57.6 million.

• Available liquidity at quarter-end was $143.3 million, with $95.3 million in cash and $48 million undrawn credit.

• Debt repayments continue at ~$95 million per year.

• Refinanced a $225 million five-year senior secured term loan at SOFR plus 165 basis points.

• Total assets as of June 30, 2026, were $1.64 billion; total liabilities $1.02 billion.

Outlook and guidance

• Fully chartered for the remainder of 2026; 92% firm coverage for 2027 (96% with options), and 65% for 2028 (93% with options).

• $881.2 million in contracted forward revenue as of June 30, 2026, with average fixed charter duration of 2.5 years and options for an additional 4.0 years.

• Shuttle tanker demand in Brazil and the North Sea remains robust, with a positive medium- and long-term market outlook.

• Anticipates multiple gradual distribution increases in coming quarters and years.

• Next debt refinancing: $65 million facility due October 2026.