KNOT Offshore Partners (NYSE:KNOP) Issues Earnings Results, Beats Expectations By $0.13 EPS

KNOT Offshore Partners (NYSE:KNOP) announced its quarterly earnings data on Friday. The shipping company reported $0.10 earnings per share for the quarter, topping the consensus estimate of ($0.03) by $0.13, Zacks reports. KNOT Offshore Partners had a return on equity of 5.72% and a net margin of 3.90%.The firm had revenue of $96.78 million during the quarter, compared to analysts’ expectations of $88.65 million.

Here are the key takeaways from KNOT Offshore Partners’ conference call:

• Fleet growth and distribution increase: KNOP acquired the Hedda Knutsen for a net cash cost of $24.4 million, adding a newer shuttle tanker backed by a Petrobras charter through November 2034. The partnership also increased its quarterly distribution to $0.075 per common unit from $0.05.
• Strong contract coverage: KNOP secured new or extended charters for Hilda Knutsen, Recife Knutsen and Ingrid Knutsen, while reporting $881.2 million of fixed-contract backlog. The fleet is fully covered for the remainder of 2026, with 92% firm coverage in 2027 and 65% in 2028.
• Improved financing profile: The partnership refinanced $225 million of debt at SOFR plus 165 basis points, meaningfully below prior terms, while continuing to repay approximately $95 million of debt annually. Management said refinancing activity remains well advanced for the $65 million Sindre Knutsen facility due in October.
• Solid quarterly operations amid a constructive market: Second-quarter revenue was $96.8 million, adjusted EBITDA was $57.6 million and available liquidity totaled $143.3 million. Utilization was 96.8% excluding scheduled drydocking, or 92.4% including the Fortaleza Knutsen drydock; management expects sustained demand from Brazilian and North Sea offshore production and FPSO growth.

KNOT Offshore Partners Trading Up 1.2%

KNOP opened at $11.37 on Friday. The firm’s fifty day moving average is $10.58 and its two-hundred day moving average is $10.53. The firm has a market cap of $382.71 million, a PE ratio of 25.84 and a beta of -0.05. KNOT Offshore Partners has a twelve month low of $7.74 and a twelve month high of $11.78. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.24 and a current ratio of 0.25.

KNOT Offshore Partners Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Monday, July 27th were issued a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 2.6%. This is a boost from KNOT Offshore Partners’s previous quarterly dividend of $0.05. The ex-dividend date was Monday, July 27th. KNOT Offshore Partners’s dividend payout ratio (DPR) is 55.56%.

Insider Activity at KNOT Offshore Partners

In other KNOT Offshore Partners news, Director Trygve Seglem acquired 1,250,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were acquired at an average price of $20.00 per share, with a total value of $25,000,000.00. Following the purchase, the director owned 1,458,333 shares of the company’s stock, valued at $29,166,660. This represents a 600.00% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Institutional Investors Weigh In On KNOT Offshore Partners

A number of hedge funds have recently modified their holdings of the business. Renaissance Technologies LLC grew its position in shares of KNOT Offshore Partners by 2.7% in the 4th quarter. Renaissance Technologies LLC now owns 1,227,035 shares of the shipping company’s stock valued at $12,700,000 after purchasing an additional 32,369 shares during the period. Millennium Management LLC raised its holdings in KNOT Offshore Partners by 56.5% during the 4th quarter. Millennium Management LLC now owns 145,483 shares of the shipping company’s stock worth $1,506,000 after buying an additional 52,538 shares during the period. Trexquant Investment LP acquired a new position in shares of KNOT Offshore Partners in the fourth quarter valued at approximately $520,000. Jane Street Group LLC acquired a new stake in shares of KNOT Offshore Partners during the fourth quarter worth $313,000. Finally, XTX Topco Ltd bought a new stake in KNOT Offshore Partners in the 4th quarter valued at $277,000. Institutional investors and hedge funds own 26.82% of the company’s stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Wall Street Zen upgraded KNOT Offshore Partners from a “sell” rating to a “hold” rating in a research report on Sunday. Zacks Research upgraded KNOT Offshore Partners from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 4th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of KNOT Offshore Partners in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $14.00.

KNOT Offshore Partners Company Profile

KNOT Offshore Partners LP is a publicly traded limited partnership formed in 2013 to own and operate shuttle tankers under long‐term charters in the offshore oil industry. Listed on the New York Stock Exchange under the symbol KNOP, the partnership specializes in the transportation of crude oil from offshore production facilities to onshore refineries. Its fleet comprises moderne shuttle tankers equipped with dynamic positioning systems, enabling safe transfer operations in harsh weather and sea conditions.

The partnership’s vessels primarily serve fields in the North Sea, Brazil and West Africa, where they operate under multi‐year contracts with major energy producers.