For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Knot Offshore (KNOP) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.Knot Offshore is one of 122 individual stocks in the Transportation sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gau ...

Knot Offshore (KNOP) closed the last trading session at $6.80, gaining 4.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $13.17 indicates a 93.7% upside potential.The average comprises three short-term price targets ranging from a low of $12.00 to a high of $15.00, with a standard deviation of $1.61. While the lowest estimate indicates an increase of 76.5% from the current price ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. ANA Holdings Inc. (ALNPY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.ANA Holdings Inc. is one of 122 individual stocks in the Transpo ...

Core Viewpoint - The Zacks Transportation - Shipping industry is currently facing significant challenges due to high inflation, tariff-related tensions, and ongoing supply-chain disruptions, compounded by geopolitical and environmental issues [1] Industry Overview - The industry is cyclical and primarily involved in the marine transportation of liquefied natural gas and crude oil under long-term, fixed-rate contracts with major energy and utility companies [3] - The shift in the e-commerce landscape due to COVID-19 has led shippers to increasingly rely on third-party logistics providers, indicating a direct correlation between the industry's health and the overall economy [3] Shipping Industry Trends - Supply-chain disruptions and high operational costs continue to negatively impact shipping stocks, with increased costs expected to persist due to ongoing issues like the Red Sea crisis [4][5] - Tariff uncertainties remain a concern, as the shipping industry is likely to experience a demand slowdown until a long-term trade deal is established, leading to potential disruptions in trade routes [6] - Environmental challenges are significant, with the shipping industry being a major contributor to greenhouse gas emissions. The International Maritime Organization aims for a 20% reduction by 2030, but current disruptions may hinder progress [7] Industry Performance - The Zacks Transportation - Shipping industry ranks 171 within the broader Zacks Transportation sector, placing it in the bottom 30% of 244 Zacks industries, indicating poor near-term prospects [8][9] - The industry's earnings estimates for 2025 have decreased by 26.6% year-over-year, reflecting analyst pessimism regarding earnings growth [10] - Over the past year, the industry has underperformed the S&P 500, declining by 33% compared to the S&P 500's increase of 11.9% [11] Current Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 6.37X, significantly lower than the S&P 500's 21.94X and the sector's 14.09X [14] Investment Opportunities - FLEX LNG Ltd. (FLNG) is highlighted for its strong demand for LNG and commitment to shareholder dividends, with a Zacks Rank of 1 and a projected 8% increase in 2026 earnings [17] - Euroseas Limited (ESEA) benefits from profitable contracts and maintains a time charter equivalent rate exceeding $30,000 per day, currently holding a Zacks Rank of 2 with a 2.1% increase in 2025 earnings estimates [20] - KNOT Offshore Partners (KNOP) specializes in shuttle tankers for crude oil transport and has consistently surpassed earnings estimates, currently holding a Zacks Rank of 2 [23]

Shares of Knot Offshore (KNOP) have gained 0.3% over the past four weeks to close the last trading session at $6.39, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $13.17 indicates a potential upside of 106.1%.The average comprises three short-term price targets ranging from a low of $12 to a high of $15, with a standard deviation of $1.61. While the lowest estimate indicates a ...

Company Performance - Knot Offshore (KNOP) has gained approximately 15.6% year-to-date, significantly outperforming the Transportation sector, which has returned an average of -8.3% [4] - The Zacks Consensus Estimate for KNOP's full-year earnings has increased by 34% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Comparison - Knot Offshore is part of the Transportation - Shipping industry, which consists of 36 individual stocks and currently ranks 173 in the Zacks Industry Rank. This industry has experienced an average loss of 6.3% year-to-date, further highlighting KNOP's superior performance [5] - In contrast, LATAM (LTM), another stock in the Transportation sector, has achieved a year-to-date return of 37% and belongs to the Transportation - Airline industry, which is ranked 136 and has declined by 10.6% year-to-date [4][6] Zacks Rank - Knot Offshore currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock in the near term [3] - LATAM has a Zacks Rank of 1 (Strong Buy), with its current year EPS consensus estimate increasing by 22% over the past three months [5]

KNOT Offshore Partners (KNOP) Q1 2025 Earnings Call May 21, 2025 09:30 AM ET Company Participants Derek Lowe - CEO & CFOLiam Burke - Managing DirectorJames Altschul - PresidentPavel Oliva - Managing Partner & FounderMario Epelbaum - Portfolio Manager-PartnerCliment Molins - Head of Shipping Research Conference Call Participants None - Analyst Operator Hello, and welcome, everyone, to the KNOT First Quarter twenty twenty five Earnings Call. My name is Maxine, and I'll be coordinating the call today. I will n ...

KNOT Offshore Partners (KNOP) Q1 2025 Earnings Call May 21, 2025 09:30 AM ET Speaker0 Hello, and welcome, everyone, to the KNOT First Quarter twenty twenty five Earnings Call. My name is Maxine, and I'll be coordinating the call today. I will now hand over to Derek Lowe, Chief Executive Officer. Please go ahead. Speaker1 Thank you, Maxine, and good morning, ladies and gentlemen. My name is Derek Lowe, and I'm the Chief Executive and Chief Financial Officer of Connaught Offshore Partners. Welcome to the Part ...

1Q 2025 (NYSE:KNOP) Forward-looking statements This presentation contains certain forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) that reflect management's current view and involve known and unknown risks and are based upon assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of KNOT Offshore Partners LP ("KNOP"). Actual results may differ materially from those expr ...

Financial Performance and Debt Management - The quarterly cash distribution was reduced to $0.026 per common unit, which may impact the company's ability to raise capital [32]. - Consolidated debt as of December 31, 2024, was approximately $909.7 million, limiting the company's flexibility in obtaining additional financing [39]. - Approximately $256.7 million of the company's debt is due to be repaid or refinanced in 2025 [40]. - The company's ability to service or refinance its debt is dependent on its current and future financial performance, which may be affected by economic conditions [41]. - Financing agreements require the company to maintain certain financial ratios, including positive working capital and a minimum liquidity [43]. - The company’s debt level may limit its flexibility in responding to changing business and economic conditions [44]. - The company can borrow money to pay distributions, which may reduce available credit for operational needs [167]. - Unitholders may have liability to repay distributions under certain circumstances, particularly if distributions exceed the fair value of assets [171]. Revenue Sources and Customer Dependence - The company relies on 13 customers for all of its time charter and bareboat revenues, indicating a lack of diversification [26]. - The company derives all of its time charter and bareboat revenues from 13 customers, with key customers accounting for approximately 24%, 17%, 14%, 13%, 9%, and 8% of revenues respectively [59]. - In 2024, subsidiaries of KNOT accounted for $28 million of the company's time charter revenues [64]. - Major customers include Shell (24%), Equinor (17%), Transpetro (14%), Repsol (13%), KNOT (9%), and TotalEnergies (8%), accounting for a significant portion of revenues for the year ended December 31, 2024 [218]. Operational Challenges and Costs - The company anticipates incurring at least 112 off-hire days due to scheduled drydockings in 2025, which could adversely affect cash available for distribution [36]. - The company must make substantial capital expenditures to maintain fleet operating capacity, which reduces cash available for distribution [35]. - The required drydocking of vessels could be more expensive and time-consuming than anticipated, impacting cash flow [36]. - The company experienced significant increases in costs for fuel, logistics, and crewing due to supply chain disruptions and inflation, impacting its financial condition [72]. - Supply chain constraints and labor shortages have led to higher operational costs, which may impact the company's ability to hire and retain crew and procure materials [72]. - The company may face operational problems with vessels that could reduce revenue and increase costs [55]. - The company anticipates ongoing supply chain pressures and inflationary impacts on its cost structure, which may affect its operations and financial results [72]. Market and Economic Conditions - The company’s growth depends on the demand for shuttle tanker transportation services, which is influenced by macroeconomic conditions and oil prices [26]. - Persistent low oil prices may adversely affect the company's growth prospects and ability to make cash distributions, with macroeconomic conditions like rising inflation and interest rates posing additional risks [68]. - Adverse economic conditions may impair customers' ability to pay for services, leading to decreased demand for the company's vessels and negatively impacting revenue [73]. - An increase in global shuttle tanker capacity without a corresponding increase in demand may adversely affect hire rates and vessel values, impacting the company's financial condition [79]. Regulatory and Compliance Risks - The International Maritime Organization (IMO) aims for a 40% reduction in carbon intensity for international shipping by 2030, compared to 2008 levels [1]. - The 2023 IMO GHG Strategy targets net-zero GHG emissions from international shipping by around 2050, with a goal of at least a 20% reduction in total annual GHG emissions by 2030 [1]. - Compliance with new climate-related regulations may increase operational costs and require installation of new emission controls [2]. - The SEC proposed rules requiring public companies to disclose material climate-related risks and GHG emissions, which could lead to increased compliance costs [4]. - The company may face reputational damage and financial impacts due to increased scrutiny on its Environmental, Social, and Governance (ESG) practices [3]. - Increased costs and risks associated with climate change regulations may hinder access to capital and affect investor relationships [3]. - Compliance with extensive environmental regulations, such as the IMO 2020 sulfur cap, may significantly increase operational expenses [112]. Corporate Governance and Ownership Structure - KNOT owns 28.4% of the company's common units and all Class B Units, creating potential conflicts of interest [137]. - The partnership agreement limits unitholders' voting rights, with only four out of seven board members elected by common unitholders [135]. - The partnership agreement allows KNOT to make decisions in its individual capacity, potentially favoring its interests over those of the company [143]. - Common unitholders are entitled to elect only four of the seven members of the board of directors, with the remaining three appointed by the general partner [1]. - The partnership agreement limits unitholders' ability to call meetings, nominate directors, and acquire operational information, which may diminish their influence [1]. Strategic Growth and Future Prospects - The company aims to generate stable cash flows and provide sustainable quarterly distributions to unitholders through strategic acquisitions and long-term charters [210]. - The company has established relationships with leading energy companies, which are expected to provide attractive opportunities for future growth [210]. - The company intends to expand operations in high-growth regions, particularly in the North Sea and Brazil [210]. - The company has a history of acquiring shuttle tankers, with significant acquisitions made from 2013 to 2025 [193][194][195][196][197][198][199][200][201][202]. Cybersecurity and Data Protection - A successful cyber-attack could materially disrupt the company's operations and lead to significant financial repercussions [130]. - Cybersecurity risks are increasing, requiring significant resources for protection and compliance with new regulations [132]. - The company is subject to evolving data protection laws, which may incur substantial compliance costs and legal liabilities [133]. - The company faces complex compliance challenges related to data privacy and cybersecurity laws, with potential penalties for noncompliance [133].