KNOT Offshore Partners LP(KNOP)

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KNOT Offshore Partners LP(KNOP) - 2024 Q3 - Quarterly Report
2024-12-04 21:17
Financial Performance - Generated total revenues of $76.3 million in Q3 2024, an increase from $74.4 million in Q2 2024, driven by higher charter and bareboat revenues[10] - Adjusted EBITDA for Q3 2024 was $45.1 million, with a net loss of $3.8 million compared to a net loss of $12.9 million in Q2 2024[4][10] - Total revenues for Q3 2024 reached $76.292 million, compared to $72.683 million in Q3 2023, marking a year-over-year increase of 4.5%[27] - Net income for the three months ended September 30, 2024, was a loss of $3,773,000 compared to a profit of $12,641,000 for the same period in 2023[39] - Net income for the nine months ended September 30, 2024, was a loss of $9,185 thousand, compared to a loss of $29,046 thousand for the same period in 2023, indicating an improvement in performance[36] - Adjusted EBITDA for the nine months ended September 30, 2024, was $138,025,000, slightly down from $139,992,000 in the same period of 2023[39] Operational Performance - Fleet utilization was 98.8% for scheduled operations in Q3 2024, maintaining strong operational performance[5] - The average margin paid on outstanding debt during Q3 2024 was approximately 2.26% over SOFR, with total interest-bearing obligations of $947.3 million[12] - Vessel operating expenses increased to $29.453 million in Q3 2024 from $23.164 million in Q3 2023, reflecting a rise of 27.1% year-over-year[27] - Depreciation expenses remained stable at approximately $27,902,000 for the three months ended September 30, 2024, compared to $27,472,000 in 2023[39] Liquidity and Capital Structure - As of September 30, 2024, the Partnership had $77.2 million in available liquidity, including $67.2 million in cash and cash equivalents[11] - Cash and cash equivalents increased from $63,921 thousand at the beginning of the period to $67,225 thousand at the end, reflecting a growth of approximately 3.8%[36] - Long-term debt decreased from $857,829 thousand to $766,895 thousand, a reduction of approximately 10.6%[33] - Current liabilities increased significantly from $127,577 thousand to $209,889 thousand, marking an increase of approximately 64.4%[33] - The total partners' capital decreased from $523,169 thousand at December 31, 2023, to $506,178 thousand at September 30, 2024, a decline of approximately 3.2%[34] Market Outlook - The outlook for the offshore oil market in Brazil is improving, with robust demand and increasing charter rates driven by Petrobras' high production levels[7] - The medium and long-term outlook for the shuttle tanker market remains favorable, supported by committed capital from industry participants and supply-demand factors[22] - Shuttle tanker demand in the North Sea has been subdued due to COVID-19-related project delays, with expectations for improvement as new oil production projects come online[21] Charter Contracts and Fleet Management - The Partnership has secured just under 96% of charter coverage for the whole of 2024, indicating strong demand in the market[6] - The charters for Tordis Knutsen and Lena Knutsen were extended by one year, with options to extend for up to three additional years, now running until 2028[4] - The Partnership has entered into multiple long-term charter contracts with Petrobras, including a new fifteen-year contract for a vessel to be delivered in late 2025 and three ten-year contracts for vessels expected to be delivered between 2026 and 2027[25] - The Partnership plans to build liquidity and maintain long-term visibility from its charter contracts to capitalize on an improving shuttle tanker market[22] Impairment and Expenses - The company recorded an impairment of $16,384 thousand for the nine months ended September 30, 2024, compared to $49,649 thousand for the same period in 2023, indicating a significant reduction in impairment losses[36] - Interest expense decreased to $16,857,000 for the three months ended September 30, 2024, from $18,493,000 in the same period of 2023[39] - Impairment charges for the nine months ended September 30, 2024, were $16,384,000, down from $49,649,000 in the same period of 2023[39] Future Strategies - The company anticipates growth strategies focused on expanding its market presence and enhancing operational efficiencies[43] - KNOT Offshore Partners is exploring opportunities for long-term charters of five years or more to stabilize revenue streams[43] - Future capital expenditures are planned to enhance fleet capabilities and operational capacity[44] - KNOT Offshore Partners is committed to maintaining long-term relationships with major users of shuttle tonnage to ensure consistent demand[44]
Here's Why Investors Should Bet on KNOT Offshore Stock Now
ZACKS· 2024-10-03 17:25
Group 1: Company Overview - KNOT Offshore Partners LP (KNOP) is experiencing positive momentum due to the bullish tanker market and a shareholder-friendly approach, leading to impressive share performance [1] - KNOP's shares have appreciated significantly, gaining 27.6% over the past six months, outperforming the industry growth of 9.7% [2] Group 2: Financial Performance - The Zacks Consensus Estimate for KNOP's current-quarter earnings has increased by 50% in the last 60 days, with a 75% upward revision for the December quarter, indicating strong broker confidence [4] - KNOP currently holds a Zacks Rank 1 (Strong Buy), reflecting its solid market position [4] Group 3: Industry Context - The tanker industry, to which KNOP belongs, has a Zacks Industry Rank of 91 out of 252, placing it in the top 36% of industries, which is crucial for stock performance [5] - The performance of the industry group significantly influences stock price movements, with strong groups likely to elevate mediocre stocks [5] Group 4: Growth Drivers - KNOP is benefiting from healthy product tanker rates and the normalization of economic activities post-COVID-19, which is enhancing its top-line performance [6] - Disruptions in maritime trade due to attacks by Yemen's Houthi militants have led KNOP to adopt longer shipping routes, resulting in increased freight rates and improved bottom line due to lower capacity [7]
KNOT Offshore Partners LP(KNOP) - 2024 Q2 - Quarterly Report
2024-09-03 20:23
Exhibit 99.1 KNOT OFFSHORE PARTNERS LP EARNINGS RELEASE—INTERIM RESULTS FOR THE PERIOD ENDED JUNE 30, 2024 Financial Highlights For the three months ended June 30, 2024 ("Q2 2024"), KNOT Offshore Partners LP ("KNOT Offshore Partners" or the "Partnership"): ● Generated total revenues of $74.4 million, operating income of $1.3 million and net loss of $12.9 million, after recording a combined $16.4 million non-cash impairment in respect of the vessels Dan Cisne and Dan Sabia. When adjusted to remove the impact ...
KNOP to Report Q2 Earnings: What's in Store for the Stock?
ZACKS· 2024-08-28 13:36
Company Overview - KNOT Offshore Partners LP (KNOP) is set to report its second-quarter 2024 results on September 4 before market open, with a Zacks Consensus Estimate for loss per unit remaining stable at 13 cents and revenues expected to decline 5.4% year over year to $69.8 million [1] Performance Expectations - The partnership's June-quarter performance is anticipated to reflect positive trends in the tanker market, with product tanker rates at healthy levels despite minor disruptions [2] - The normalization of economic activities and an increase in world trade following the lifting of COVID-19 restrictions are expected to enhance KNOP's top-line performance [2] Market Challenges - Recent attacks by Yemen's Houthi militants on vessels in the Red Sea have disrupted maritime trade, causing many shipping companies to halt transit through this route [3] - To ensure crew safety, KNOP is opting for a longer and more expensive route around the Cape of Good Hope instead of the Suez Canal, leading to increased freight rates due to reduced container availability [4] Cost Implications - While lower capacity is likely to have positively impacted the bottom line, rising oil prices and supply-chain issues are expected to have increased costs, potentially limiting bottom-line growth in the upcoming quarter [4] Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for KNOP this time, as the combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) does not increase the likelihood of exceeding estimates [5][6]
Should Value Investors Buy KNOT Offshore Partners (KNOP) Stock?
ZACKS· 2024-07-17 14:57
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at ...
What Makes Knot Offshore (KNOP) a Good Fit for 'Trend Investing'
ZACKS· 2024-06-21 13:50
While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...
What Makes Knot Offshore (KNOP) a Strong Momentum Stock: Buy Now?
ZACKS· 2024-06-11 17:00
Core Viewpoint - Knot Offshore (KNOP) is currently rated as a 1 (Strong Buy) stock with a Momentum Score of A, indicating strong potential for short-term price appreciation [2][6]. Performance Metrics - Over the past week, KNOP shares have increased by 12.7%, while the Zacks Transportation - Shipping industry has declined by 2.84% during the same period [6]. - In a longer time frame, KNOP's shares have risen by 33.21% over the past month, significantly outperforming the industry's 2.36% [6]. - Over the last quarter, KNOP shares have increased by 36.26%, and they are up 33.71% over the past year, compared to the S&P 500's gains of 5% and 26.33%, respectively [11]. Earnings Outlook - In the past two months, one earnings estimate for KNOP has been revised upward, while none have been revised downward, leading to an increase in the consensus estimate from -$0.31 to -$0.07 [7]. - For the next fiscal year, one estimate has moved upwards with no downward revisions in the same period [7]. Trading Volume - The average 20-day trading volume for KNOP is currently 147,533 shares, which serves as a useful baseline for price-to-volume analysis [3].
Here's Why 'Trend' Investors Would Love Betting on Knot Offshore (KNOP)
ZACKS· 2024-06-04 13:52
Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stocks [1]. Group 1: Recent Price Strength Screen - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - Stocks that pass this screen are trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [2]. Group 2: Knot Offshore (KNOP) Analysis - Knot Offshore (KNOP) has shown a solid price increase of 33.4% over the past 12 weeks, reflecting investor confidence in its potential upside [3]. - Over the last four weeks, KNOP's price increased by 34.4%, indicating that the upward trend is still intact [4]. - Currently, KNOP is trading at 88.2% of its 52-week high-low range, suggesting it may be on the verge of a breakout [5]. Group 3: Fundamental Strength - KNOP holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), indicating strong optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Broader Investment Opportunities - In addition to KNOP, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [7]. - The article suggests that investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [7].
Are Investors Undervaluing KNOT Offshore Partners (KNOP) Right Now?
zacks.com· 2024-05-29 14:46
These are only a few of the key metrics included in KNOT Offshore Partners's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KNOP looks like an impressive value stock at the moment. One company value investors might notice is KNOT Offshore Partners (KNOP) . KNOP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. Value investors also frequently use the P/S ratio. This metric is found by divid ...
KNOT Offshore Partners LP(KNOP) - 2024 Q1 - Earnings Call Transcript
2024-05-23 16:13
Financial Data and Key Metrics - Q1 2024 revenues were $76.6 million, operating income was $19.7 million, net income was $7.4 million, and adjusted EBITDA was $47.5 million [11] - The company ended Q1 with $55 million in available liquidity, consisting of $50 million in cash and cash equivalents plus $5 million in undrawn credit facilities [11] - Vessel utilization was 97.6% in Q1, with no impact from planned drydocking [11] - A cash distribution of $0.026 per common unit was declared and paid in early May [11] Business Line Data and Key Metrics - In Brazil, Vigdis Knutsen was delivered to Shell in March for a three-year time charter, and Anna Knutsen's charter with TotalEnergies was extended to April 2026 [5] - Ingrid Knutsen and Torill Knutsen will commence charters with Eni in Q4 2024, with Ingrid Knutsen's charter deferred from April to October [6] - Torill Knutsen is undergoing repairs to a broken generator rotor, expected to be completed in Q2 or Q3, with repair costs and loss of hire covered by insurance [6] - Dan Sabia is due for redelivery in June, with focus on near-term deployment for Dan Cisne, Dan Sabia, and Hilda Knutsen [7] Market Data and Key Metrics - In the North Sea, Hilda Knutsen, Torill Knutsen, and Bodil Knutsen continued to operate under time charters to Knutsen NYK, with Bodil Knutsen delivered to Equinor at the end of March [12] - Dan Cisne was deployed on short-term conventional tanker work after redelivery in December 2023, with upgrades for North Sea shuttle tanker work planned [13] - Significant growth is anticipated in production fields served by shuttle tankers, with reported orders of around six vessels in early 2024, including three by the sponsor for delivery in 2026 and 2027 [14] Company Strategy and Industry Competition - The company remains positive on industry dynamics and its positioning, with significant growth expected in production fields served by shuttle tankers [14] - A material shortage of shuttle tanker capacity is projected in the coming years, with new build orders expected to service large new production volumes [8] - The company has a strong contracted revenue position of $683 million at the end of Q1, with fixed contracts averaging two years in duration and options averaging a further two years [15] Management Commentary on Operating Environment and Future Outlook - Management highlighted the consistency of revenues and operating income across quarters and 12-month periods [9] - The company remains financially resilient with a strong contracted revenue position and sufficient cash generation for operations and debt repayment [15] - The average age of the fleet is 9.9 years, well within the useful life model of 23 years [16] Other Important Information - The company completed refinancing of the loan secured by Hilda Knutsen, reducing overall liabilities by $42 million [17] - $880 million out of $925 million in debt facilities are secured by vessels, with two revolving credit facilities totaling $50 million unsecured [20] - The company has five existing vessels and five under construction eligible for purchase by the partnership, subject to board approval [22] Q&A Session Summary Question: North Sea Market Activity - Management anticipates significant demand increase in the North Sea once new FPSOs come online, with focus on marketing Hilda Knutsen and Dan Cisne [33][36] Question: Incremental Demand from New FPSOs - Management expects sufficient incremental demand to cover under-utilized vessels, with Hilda Knutsen and Dan Cisne available for North Sea work [44][45] Question: Dan Cisne Upgrades - Upgrades for Dan Cisne are expected to take around a month to six weeks, with costs not material to financial results [52][53] Question: Dan Sabia Market Position - Dan Sabia is being marketed in Brazil despite not being ideally sized, with potential for client demand [55] Question: Torill Knutsen Downtime - Torill Knutsen experienced around a month of downtime in Q1 due to a broken generator rotor, with earnings impacted but not fully lost [58] Question: Opex and G&A Trends - Opex increased slightly due to voyage expenses, with G&A remaining stable [64] Question: Interest Rate Hedges - The company added a small amount of interest rate hedges in Q1, staying within policy range for fixed-rate debt [66][67] Question: New Build Pricing Impact - New build pricing does not significantly impact existing fleet pricing, with demand dynamics being the primary driver [73][74] Question: Share Buybacks - The company prioritizes filling contract gaps and improving liquidity before considering share buybacks [79][82] Question: Dividend and Debt Reduction - Shareholders expressed support for maintaining the current dividend and aggressively reducing debt, with no immediate plans for drop-down acquisitions [89][93]