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Overview of KNOT Offshore Partners LP (KNOP)
KNOT Offshore Partners LP (KNOP) is a publicly traded master limited partnership strategically positioned in the offshore oil logistics industry. Operating in the high-stakes environmental settings of the North Sea and Brazil, the company specializes in owning, operating, and acquiring shuttle tankers under long-term charters. By delivering reliable crude oil loading, transportation, and storage services, KNOP addresses the pivotal need for safe, efficient oil transport in challenging offshore regions. Keywords such as shuttle tankers, long-term charters, and crude oil transport underpin its day-to-day operations, reflecting its core business model and operational focus.
Business Model and Operational Dynamics
At the heart of its business, KNOP operates through a fleet of shuttle tankers that are chartered on long-term arrangements, ensuring a steady flow of revenue while mitigating market volatility. The company utilizes both time charter and bareboat charter agreements, offering flexibility in how vessels are operated and managed. This model not only provides operational stability but also enhances the overall asset utilization, making the fleet a key strategic asset for the partnership.
These long-term agreements enable KNOP to secure predictable cash flows, even as the broader oil market experiences fluctuations. The focus on shuttle tanker operations positions KNOP in a niche yet vital segment of offshore logistics, where precision, safety, and adherence to international maritime standards are paramount.
Strategic Partnerships and Support Structure
One of the defining features of KNOP's operational strategy is its close association with its sponsor, Knutsen NYK Offshore Tankers. This sponsor is itself the product of a joint venture between two globally diversified shipping powerhouses -- the Knutsen Group and the NYK Group. This relationship provides KNOP with critical material support across operations, administration, and business development. The deep industry expertise and global reach of its sponsors empower KNOP with advanced navigational support, capital investment insights, and operational best practices.
The alignment with such established industry players not only ensures that KNOP benefits from proven methodologies in vessel management but also reinforces its ability to navigate the complexities of the offshore oil transportation market.
Market Position and Competitive Landscape
Operating exclusively in the shuttle tanker segment, KNOP maintains a specialized niche not frequently penetrated by general tanker operators. Its operational focus in well-established oil production regions like the North Sea and Brazil means that the company is deeply embedded in markets known for their operational complexities and high regulatory standards. Shuttle tanker operations involve meticulous planning and strict adherence to environmental and safety regulations, which KNOP manages through robust operational protocols and industry best practices.
Within the competitive landscape, KNOP differentiates itself through its stable long-term charter business and strategic sponsor support. While competitors may offer diversified shipping services, KNOP’s targeted operational model and strategic infrastructure provide it with a distinct value proposition in the marine fuel transportation sector.
Operational Excellence and Risk Management
KNOP operates in a high-risk yet critical segment of the marine transportation industry. Its operational framework is built around continuous adherence to international safety and environmental protocols, ensuring that each voyage in offshore and deep-water environments is executed with precision. The controlled exposure to market volatility is achieved through long-term charter commitments, which serve as a safeguard against short-term disruptions and economic swings.
The company also emphasizes rigorous maintenance, technical oversight, and industry-standard risk management practices, which collaboratively safeguard operational continuity and asset value. By integrating advanced monitoring systems and regular compliance audits, KNOP maintains high reliability and performance standards throughout its fleet operations.
Key Service Offerings
- Shuttle Tanker Operations: Specialized vessel management including crude oil loading, transportation, and storage services.
- Long-Term Charter Agreements: Contracts that assure operational and revenue stability over extended periods.
- Asset Acquisition: Strategic acquisition initiatives to expand and modernize the fleet, optimizing operational benchmarks.
- Integrated Operational Support: Leveraging the extensive network and expertise from its sponsor to streamline administrative and operational functions.
Industry Insights and Operational Milieu
The offshore oil transportation market is inherently complex, with shuttle tanker operations being a critical yet specialized component. KNOP's operations reflect a focus on safety, efficiency, and meticulous planning, which are essential given the dynamic and unpredictable nature of the industry. The company's ability to meet stringent international maritime regulations and environmental standards underlines its commitment to operational excellence. Furthermore, its geographic focus on the North Sea and Brazil anchors it in regions with historically significant oil production but also areas that demand adherence to robust operational protocols and deep sector expertise.
Conclusion
KNOT Offshore Partners LP (KNOP) is a well-defined entity within the offshore oil logistics sector, characterized by its dedicated fleet of shuttle tankers and a business model deeply rooted in long-term charter operations. Its strategic partnership with Knutsen NYK Offshore Tankers enhances both its operational efficiency and competitive positioning, making it a significant participant in the niche market of offshore crude oil transportation. Through rigorous risk management, adherence to high safety standards, and a focus on operational excellence, KNOP continues to maintain a stable footing in a challenging industry environment, offering insights into a specialized segment that remains crucial to global energy logistics.
KNOT Offshore Partners LP (NYSE:KNOP) has announced its quarterly cash distribution for Q1 2025. The Partnership will distribute US$ 0.026 per common unit to unitholders of record as of April 28, 2025, with payment scheduled for May 8, 2025.
The company, which owns and operates shuttle tankers in Brazil and the North Sea's offshore oil production regions, primarily under long-term charters, emphasizes that accretive fleet investment and sustainable distribution remain key components of its strategy and value proposition. Though structured as a publicly traded master partnership, KNOP is classified as a for U.S. federal income tax purposes, issuing Form 1099 to unitholders instead of Form K-1.
KNOT Offshore Partners LP (NYSE: KNOP) has announced a change to its Board of Directors. Masami Okubo will replace Yasuhiro Fukuda on the Partnership's Board, effective April 1, 2025. Both individuals are employees of Nippon Yusen Kabushiki Kaisha (NYK).
Okubo brings significant experience to the role, currently serving as Managing Director of NYK Energy Transport (Atlantic) in London. His previous positions include Senior General Manager of NYK's LNG Group (April 2024-March 2025), General Manager (2022-2024), and Manager of NYK's Offshore Business Group (2016-2022). He joined NYK in 1999 and is a graduate of the University of Kyoto.
KNOT Offshore Partners operates shuttle tankers under long-term charters in Brazil and the North Sea's offshore oil production regions. The Partnership trades on NYSE as 'KNOP' and is structured as a publicly traded master partnership but classified as a for U.S. federal income tax purposes.
KNOT Offshore Partners LP (NYSE: KNOP) has announced the filing of its Annual Report on Form 20-F for the year ended December 31, 2024 with the SEC. The report is accessible through the Partnership's website under the 'Investors' section or directly on the SEC website.
The Partnership, which specializes in owning and operating shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea, is structured as a publicly traded master partnership but is classified as a for U.S. federal income tax purposes, issuing Form 1099 to unitholders instead of Form K-1.
KNOT Offshore Partners reported strong Q4 2024 financial results with total revenues of $91.3 million (including $5.9M insurance proceeds), operating income of $34.7 million, and net income of $23.3 million. The fleet maintained a high utilization rate of 98.3%.
The Partnership declared a quarterly cash distribution of $0.026 per common unit and $1.7 million for Series A Preferred Units holders. Available liquidity stood at $90.4 million, including $66.9M in cash and $23.5M in undrawn credit facility.
Several vessels secured new charters or extensions: Ingrid Knutsen (2-year with Eni), Hilda Knutsen (1-year with oil major), Torill Knutsen (3-year with Eni), Carmen Knutsen (1-year extension with Repsol), and Brasil Knutsen (new 2-year charter with Equinor starting Q3 2025). The Partnership has secured over 94% charter coverage for 2025 and 75% for 2026.
KNOT Offshore Partners LP (NYSE:KNOP) has announced a strategic vessel swap transaction, exchanging its smaller 2012-built Dan Sabia for the larger, modern 2021-built Live Knutsen shuttle tanker. The Live Knutsen, a 153,000-deadweight ton DP2 Suezmax class vessel, will be acquired for $100 million less $73.39 million of outstanding debt.
The transaction involves a net payment of $1.21 million from KNOP to KNOT, with completion expected by February 28, 2025. The Live Knutsen operates in Brazil under a charter contract with Galp Sinopec through November 2026, with KNOT guaranteeing the hire rate until November 2029. This strategic move aims to modernize KNOP's fleet and secure stable, long-term revenue streams.
KNOT Offshore Partners LP (NYSE: KNOP) has announced its upcoming 4th Quarter 2024 earnings release and conference call schedule. The financial results will be released before market opening on Thursday, March 20, 2025. A conference call to discuss the results will follow at 9:30 AM Eastern Time on the same day.
Stakeholders can participate via webcast through the company's website or by dialing specific numbers: 1-833-470-1428 (US), 1-833-950-0062 (Canada), or +1-404-975-4839 (international), using access code 060094. The earnings presentation will be available on the company's website before the call, and a recording will be accessible until March 27, 2024.
KNOT Offshore Partners LP specializes in owning, operating, and acquiring shuttle tankers, primarily under long-term charters in the North Sea and Brazil offshore oil production regions. The company trades on the NYSE under 'KNOP' and issues Form 1099 to unitholders as a for U.S. tax purposes.
KNOT Offshore Partners LP (NYSE:KNOP) has announced its quarterly cash distribution for Q4 2024. The Partnership will distribute US$ 0.026 per common unit to unitholders of record as of January 27, 2025, with payment scheduled for February 6, 2025.
The company reaffirms its strategic focus on accretive fleet investments and maintaining long-term, sustainable distributions. KNOT Offshore Partners operates shuttle tankers under long-term charters in Brazil and the North Sea's offshore oil production regions. While structured as a master partnership, it is classified as a for U.S. federal income tax purposes, issuing Form 1099 to unitholders.
KNOT Offshore Partners reported Q3 2024 financial results with total revenues of $76.3 million, operating income of $17.2 million, and a net loss of $3.8 million. The fleet operated with 98.8% utilization for scheduled operations. The Partnership declared a quarterly cash distribution of $0.026 per common unit and $1.7 million for Series A Preferred Units.
Key developments include multiple vessel charter extensions and new agreements: Shell extended charters for Tordis Knutsen and Lena Knutsen until 2028 with options until 2031; new time charters were secured for Ingrid Knutsen, Hilda Knutsen, and Torill Knutsen. The Partnership completed a vessel swap, acquiring Tuva Knutsen while selling Dan Cisne. Available liquidity stood at $77.2 million, including $67.2 million in cash and $10 million in undrawn credit facility.
KNOT Offshore Partners LP (NYSE:KNOP) has announced its upcoming 3rd Quarter 2024 earnings results conference call, scheduled for Thursday, December 5, 2024. The financial results will be released before market opening, followed by a conference call at 9:30 AM Eastern Time. Investors can access the call via webcast through the company's website or by dialing specific numbers for US, Canada, and international participants. The earnings presentation will be available on the company's website, and a recording will be accessible until December 12, 2024.
KNOT Offshore Partners LP (NYSE:KNOP) has announced its quarterly cash distribution for the third quarter of 2024. The Board of Directors has declared a distribution of US$ 0.026 per common unit for the quarter ended September 30, 2024. This distribution will be paid on November 7, 2024, to unitholders of record as of the close of business on October 28, 2024.
KNOT Offshore Partners LP is a publicly traded master partnership that owns, operates, and acquires shuttle tankers. These tankers primarily operate under long-term charters in the offshore oil production regions of Brazil and the North Sea. The company's common units trade on the New York Stock Exchange under the symbol 'KNOP'. Although structured as a master partnership, KNOT Offshore Partners LP is classified as a for U.S. federal income tax purposes and issues Form 1099 to its unitholders instead of Form K-1.
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