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

KNOT Offshore Partners (NYSE:KNOP) announced its earnings results on Friday. The shipping company reported $0.10 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.03) by $0.13, Zacks reports. KNOT Offshore Partners had a net margin of 3.90% and a return on equity of 5.72%. The business had revenue of $96.78 million during the quarter, compared to the consensus estimate 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 Stock Up 1.2%

Shares of NYSE:KNOP opened at $11.37 on Friday. The firm has a market capitalization of $382.71 million, a PE ratio of 25.84 and a beta of -0.05. 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 has a 52-week low of $7.74 and a 52-week high of $11.78. The firm has a fifty day moving average of $10.58 and a 200 day moving average of $10.53.

KNOT Offshore Partners Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Monday, July 27th were given 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 presently 55.56%.

Insider Transactions at KNOT Offshore Partners

In other news, Director Trygve Seglem acquired 1,250,000 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was purchased at an average cost of $20.00 per share, for a total transaction of $25,000,000.00. Following the acquisition, the director owned 1,458,333 shares of the company’s stock, valued at $29,166,660. This trade represents a 600.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.

Institutional Trading of KNOT Offshore Partners

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Russell Investments Group Ltd. raised its stake in shares of KNOT Offshore Partners by 115.0% during the second quarter. Russell Investments Group Ltd. now owns 9,042 shares of the shipping company’s stock worth $58,000 after acquiring an additional 4,836 shares in the last quarter. Occudo Quantitative Strategies LP bought a new position in shares of KNOT Offshore Partners during the 2nd quarter valued at $68,000. Osaic Holdings Inc. grew its holdings in shares of KNOT Offshore Partners by 220.3% during the 2nd quarter. Osaic Holdings Inc. now owns 16,557 shares of the shipping company’s stock valued at $104,000 after purchasing an additional 11,388 shares during the last quarter. Cetera Investment Advisers purchased a new position in KNOT Offshore Partners in the 4th quarter worth $125,000. Finally, Acadian Asset Management LLC purchased a new position in KNOT Offshore Partners in the 1st quarter worth $130,000. Hedge funds and other institutional investors own 26.82% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Wall Street Zen lowered KNOT Offshore Partners from a “hold” rating to a “sell” rating in a research report on Saturday, August 29th. Weiss Ratings restated a “hold (c)” rating on shares of KNOT Offshore Partners in a report on Wednesday, July 29th. Finally, Zacks Research upgraded KNOT Offshore Partners from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, KNOT Offshore Partners currently has an average rating of “Moderate Buy” and a consensus price target of $14.00.

About KNOT Offshore Partners

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.