Core Points - KNOT Offshore Partners LP has declared a quarterly cash distribution of US$ 0.026 per common unit for the quarter ended September 30, 2025 [1] - The distribution will be paid on November 6, 2025, to unitholders of record as of the close of business on October 27, 2025 [1] - The Partnership maintains a positive outlook on key components of its operations [1]

Financial Performance - Operating revenues for Q2 2025 reached $87.06 million, a 17% increase from $74.42 million in Q2 2024[6] - Net income for the first half of 2025 was $14.39 million, compared to a net loss of $5.41 million in the same period of 2024[9] - The company reported an operating income of $22.18 million for Q2 2025, significantly up from $1.33 million in Q2 2024[6] - For the six months ended June 30, 2025, the net income was $14,391, compared to a net loss of $5,413 for the same period in 2024, indicating a significant turnaround[19] - For the three months ended June 30, 2025, the net income was $6.81 million, compared to a net loss of $12.85 million for the same period in 2024[115] - Net income for the three months ended June 30, 2025, was $6.8 million, a significant improvement of $19.7 million compared to a net loss of $12.9 million for the same period in 2024[190] Expenses and Liabilities - Total operating expenses decreased to $126.81 million in the first half of 2025, down from $130.02 million in the first half of 2024[6] - Total current liabilities decreased to $219.11 million as of June 30, 2025, from $287.12 million at the end of 2024[12] - Interest expense for Q2 2025 was $14.72 million, down from $16.32 million in Q2 2024, representing a decrease of 9.8%[50] - Total interest expense for the first half of 2025 was $30.22 million, a reduction of 12.3% compared to $34.33 million in the same period of 2024[50] - The Partnership's total other finance expense for the first half of 2025 was $351, compared to $92 in the same period of 2024[51] Assets and Cash Flow - Cash and cash equivalents as of June 30, 2025, were $66.32 million, slightly down from $66.93 million at the end of 2024[12] - Total assets increased to $1.62 billion as of June 30, 2025, compared to $1.57 billion at the end of 2024[12] - The partnership's net cash provided by operating activities for the six months ended June 30, 2025, was $67,980, compared to $60,572 for the same period in 2024, showing an increase of approximately 12.4%[19] - The partnership's cash and cash equivalents at the end of the period were $66,322, compared to $56,619 at the end of June 30, 2024, representing an increase of approximately 17.5%[19] Debt and Financing - Long-term debt rose to $735.45 million as of June 30, 2025, up from $648.08 million at the end of 2024[12] - The carrying amount of long-term debt as of June 30, 2025, was $918.59 million, compared to $909.65 million as of December 31, 2024[64] - The Partnership's long-term debt repayment schedule includes a total of $918.6 million, with significant repayments due in 2026 amounting to $373.7 million[84] - The Live Facility, which became a debt obligation upon the acquisition of Live Knutsen, has an outstanding amount of $73.4 million as of March 3, 2025, and bears interest at SOFR plus a margin of 2.01%[85][88] Acquisitions and Fleet - The acquisition of the Daqing Knutsen was completed on July 2, 2025, which will be accounted for as an asset acquisition and included in consolidated operations from that date[23] - The Partnership acquired KNOT's 100% interest in KNOT Shuttle Tankers 27 AS on March 3, 2025, as part of its market expansion strategy[78] - The Partnership acquired the Live Knutsen for a purchase price of $100 million, netting an initial cost of approximately $26.6 million after accounting for outstanding indebtedness and capitalized fees[172] - The Partnership's fleet consisted of eighteen shuttle tankers as of June 30, 2025, with charter contracts expiring between 2026 and 2031[22] Revenue and Contracts - Time charter revenues for the three months ended June 30, 2025, were $85,920,000, up 20.8% from $71,075,000 in 2024[39] - Minimum contractual future revenues from time charters and bareboat charters total $895,203,000, with $178,012,000 expected in 2025[39] - Time charter and bareboat revenues increased by $12.5 million to $85.9 million for the three months ended June 30, 2025, compared to $73.4 million for the same period in 2024, primarily due to the inclusion of the Tuva Knutsen and Live Knutsen in the fleet[190] Tax and Valuation - The effective tax rate for the three months ended June 30, 2025, is -2%, compared to 2% for the same period in 2024[73] - The Partnership recognized a valuation allowance against deferred tax assets of $3.0 million as of June 30, 2025, down from $3.2 million as of December 31, 2024[72] Other Financial Metrics - The Partnership's total assets pledged as security for long-term debt and interest rate swap obligations amounted to $1.513 billion as of June 30, 2025, up from $1.462 billion at December 31, 2024[110] - The total notional amount of outstanding interest rate swap contracts as of June 30, 2025, was $421.2 million, up from $417.9 million at the end of 2024[59] - The Partnership's interest rate swap contracts had a net asset value of $6.2 million as of June 30, 2025, down from $13.3 million at the end of 2024[59] Shareholder Returns - The Partnership reported cash distributions declared and paid per unit of $0.03 for the three months ended June 30, 2025, consistent with the same period in 2024[115] - The Partnership authorized a common unit repurchase program of up to $10 million over the next 12 months[146] - As of September 29, 2025, the Partnership repurchased 226,374 common units at an average price of $7.24 per unit, totaling $1.64 million[148]

Group 1 - The focus has shifted from primarily tech stocks to include offshore drilling, supply industry, and shipping sectors such as tankers, containers, and dry bulk [1] - There is an emerging interest in the fuel cell industry, which is still in its nascent stage [1] Group 2 - The individual has a background in auditing with PricewaterhouseCoopers and transitioned to day trading nearly 20 years ago [2] - The experience includes navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Group 1 - The article does not provide any specific content related to a company or industry, as it appears to be a technical issue regarding browser settings and ad-blockers [1]

Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $87.1 million, with operating income at $22.2 million and net income at $6.8 million, while adjusted EBITDA was $51.6 million [3][11] - Available liquidity as of June 30, 2025, was $104 million, consisting of $66.3 million in cash and cash equivalents and $38.5 million in undrawn credit facilities, which is $4 million higher than at the end of Q1 [3][11] Business Line Data and Key Metrics Changes - The company achieved full utilization of its fleet, with an overall utilization rate of 96.8%, despite the start of two dry dockings [3] - The backlog as of June 30, 2025, was extended to $895 million in fixed contracts, averaging 2.6 years [9] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by Floating Production Storage and Offloading (FPSO) startups and ramp-ups [8][9] - The average age of the fleet was reduced from 10.1 years to 9.7 years with the addition of a new vessel [9] Company Strategy and Development Direction - The company is focused on fleet growth through acquisitions and maintaining high operational utilization, while also planning to increase distributions to unitholders [17][27] - The strategic acquisition of the Dakin Connexion is expected to enhance long-term contracts and fleet growth without drawing on cash reserves [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook, citing positive momentum in the shuttle tanker market and the company's ability to address debt maturities [12][16] - The company is optimistic about the demand for shuttle tankers, anticipating a medium-term shortage against forthcoming production [16] Other Important Information - A cash distribution of $0.026 per common unit was declared and paid in August 2025 [4] - The company initiated a $10 million unit buyback program, repurchasing 226,000 common units at an average price of $7.24 [6][10] Q&A Session Summary Question: Delivery timeline for Dakin Connexion - Management confirmed that the Dakin Connexion was delivered on July 2, 2025, the same day it was announced [19][20] Question: Future dropdowns and fleet growth - Management indicated that they do not have a specific timing for future dropdowns but will respond to opportunities as they arise, emphasizing the importance of financial capacity [22] Question: Contracting discussions for older vessels - Management clarified that their business model focuses on operating vessels rather than trading them, and they are actively discussing contracts for older vessels [26] Question: Balancing fleet growth and distribution increases - Management stated that fleet growth and returns to unitholders are both important and can be pursued simultaneously without conflict [27][28]

Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $87.1 million, with operating income at $22.2 million and net income at $6.8 million, while adjusted EBITDA was $51.6 million [3][11] - Available liquidity as of June 30, 2025, was $104 million, consisting of $66.3 million in cash and cash equivalents and $38.5 million in undrawn credit facilities, which is $4 million higher than at the end of Q1 [3][11] Business Line Data and Key Metrics Changes - The company achieved full utilization of its fleet, with an overall utilization rate of 96.8%, despite the start of two dry dockings [3] - The backlog of fixed contracts increased to $895 million, averaging 2.6 years, with potential for more if all options are exercised [9] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by Floating Production Storage and Offloading (FPSO) startups and ramp-ups [8][9] - The average age of the fleet was reduced from 10.1 years to 9.7 years with the addition of a new vessel [9][28] Company Strategy and Development Direction - The company is focused on fleet growth through acquisitions and maintaining high operational utilization, while also planning to increase distributions to unitholders [17][27] - The strategy includes a combination of accretive growth and returns of capital to unit holders, with a $10 million unit buyback program initiated [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook, citing positive momentum in the shuttle tanker market and the company's ability to address debt maturities [12][16] - The company is optimistic about the demand for shuttle tankers, anticipating a medium-term shortage against forthcoming production [16] Other Important Information - The company declared a cash distribution of $0.026 per common unit, paid in August [4] - The Dakin Connexion was purchased for $95 million, with a cash component of approximately $25 million, and is on time charter with PetroChina until July 2027 [5][6] Q&A Session Summary Question: Delivery timeline for Dakin Connexion - Management confirmed that the Dakin Connexion was delivered on July 2, 2025, the same day it was announced [19][20] Question: Future dropdowns and fleet growth - Management indicated that they do not have a specific timing for future dropdowns but will respond to opportunities as they arise, emphasizing the importance of financial capacity [20][22] Question: Contracting discussions for older vessels - Management stated that their business model focuses on operating vessels rather than trading them, and they are actively discussing contracts for older vessels with clients [26] Question: Balancing fleet growth and distribution increases - Management explained that fleet growth and returns to unit holders are both important and can be pursued simultaneously, with the buyback program being a smaller component compared to fleet acquisitions [27][28]

Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $87.1 million, with operating income at $22.2 million and net income at $6.8 million, while adjusted EBITDA was $51.6 million [3][11] - Available liquidity as of June 30, 2025, was $104 million, consisting of $66.3 million in cash and cash equivalents and $38.5 million in undrawn credit facilities, which is $4 million higher than at the end of Q1 [3][11] Business Line Data and Key Metrics Changes - The company operated with full utilization, achieving an overall utilization rate of 96.8%, despite the start of two dry dockings [3] - The backlog as of June 30, 2025, was extended to $895 million in fixed contracts, averaging 2.6 years [9] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by Floating Production Storage and Offloading (FPSO) startups and ramp-ups [8][9] - The average age of the fleet was reduced from 10.1 years to 9.7 years with the addition of a new vessel [9][28] Company Strategy and Development Direction - The company aims to continue growth through acquisitions while maintaining high operational utilization and safe operations [17] - The strategy includes increasing the pipeline of long-term contracts, fleet growth, and reducing the average fleet age [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook, citing positive momentum in the shuttle tanker market and the company's ability to address debt maturities [12] - The company is focused on capital allocation towards both growth and returns to unit holders, indicating a balanced approach to fleet expansion and distribution increases [27] Other Important Information - The company declared a cash distribution of $0.026 per common unit, paid in August [4] - A $10 million unit buyback program was initiated, with 226,000 common units repurchased at an average price of $7.24 per unit [6][10] Q&A Session Summary Question: Delivery timeline for Dakin Connexion - Management confirmed that the Dakin Connexion was delivered on July 2, 2025, the same day it was announced [19][20] Question: Future dropdowns and fleet growth - Management indicated that they do not have a specific timing for future dropdowns but will respond to opportunities as they arise, emphasizing the importance of financial capacity [20][22] Question: Contracting discussions for older vessels - Management stated that their business model focuses on operating vessels rather than trading them, and they are actively discussing contracts for older vessels with clients [26] Question: Balancing fleet growth and distribution increases - Management explained that fleet growth and returns to unit holders are both important and can be pursued simultaneously, with the buyback program being a smaller component compared to fleet acquisitions [27][28]

Financial Data and Key Metrics Changes - Revenues for Q2 2025 were reported at $87.1 million, with operating income of $22.2 million and net income of $6.8 million. Adjusted EBITDA stood at $51.6 million. Available liquidity as of June 30, 2025, was $104 million, comprising $66.3 million in cash and cash equivalents and $38.5 million in undrawn credit facilities, which is $4 million higher than at the end of Q1 2025 [3][11][12] Business Line Data and Key Metrics Changes - The company achieved full utilization of its fleet, with an overall utilization rate of 96.8%, despite the start of two dry dockings. The charter coverage was extended through various new chartering agreements and options exercised by charterers [3][4][9] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by Floating Production Storage and Offloading (FPSO) startups and ramp-ups. The company has extended its backlog to $895 million of fixed contracts, averaging 2.6 years, with the average age of the fleet decreasing from 10.1 years to 9.7 years following the addition of a new vessel [8][9][15] Company Strategy and Development Direction - The company is focused on growth through acquisitions and maintaining a high operational utilization rate. It aims to increase earnings visibility and liquidity while also considering unit buybacks as a means to enhance shareholder value. The strategy includes replenishing the fleet with younger vessels and securing long-term contracts [7][10][17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive momentum for both the company and the wider sector, indicating that the financial impact of chartering typically arrives after an upturn in sentiment or spot market activity. They noted that the shuttle tanker demand is expected to absorb the current order book, with a medium-term shortage anticipated [10][12][15] Other Important Information - The company declared a cash distribution of $0.026 per common unit, which was paid in August 2025. Additionally, a $10 million unit buyback program was initiated, with 226,000 common units repurchased at an average price of $7.24 per unit [4][6][16] Q&A Session Summary Question: Delivery timeline for Dakin Connexion - Management confirmed that the Dakin Connexion was delivered on the day of the announcement, July 2, 2025 [19] Question: Future dropdowns and financing flexibility - Management indicated that they do not have a specific timing for future dropdowns but will respond to opportunities as they arise, based on financial capacity and terms offered [20][21] Question: Contracting discussions for older vessels - Management stated that their business model focuses on operating vessels rather than trading them, and they are actively discussing contracting opportunities for all vessels, including older ones [26] Question: Balancing fleet growth and distribution increases - Management emphasized that fleet growth and returns to unit holders are both important and can be pursued simultaneously, with acquisitions necessary to maintain a rejuvenated fleet [27][28]

Financial Performance (2Q 2025) - Revenues reached $87.1 million[10], with an operating income of $22.2 million[10] and a net income of $6.8 million[10] - Adjusted EBITDA stood at $51.6 million[10] - Available liquidity as of June 30, 2025, was $104.8 million, including $66.3 million in cash and cash equivalents and $38.5 million in undrawn credit facility, increased by $4.0 million since March 31, 2025[10] Fleet and Operations - Fleet operated with 100% utilization, or 96.8% overall when considering scheduled drydockings[10] - The company purchased the Daqing Knutsen on July 2, 2025, for a net cash cost of $24.8 million[14], which included $95 million less $70.5 million of outstanding debt plus $0.3 million of capitalized fees[14] Contractual Agreements and Extensions - Repsol Sinopec exercised their option to extend their time charter on the Raquel Knutsen for three years, until June 2028[11] - Agreement was reached with Shell to extend the term of the current time charter for the Hilda Knutsen by 3 months firm (to June 2026) plus a further 9 months at our option (to March 2027)[16] - Agreement was reached with Equinor to extend the term of the current time charter for the Bodil Knutsen to a fixed term ending in March 2029, followed by two charterer's options each of one year[18] Capital Allocation - A common unit buyback program was established on July 2, 2025, with a capacity for $10 million of purchases over the subsequent 12 months[15] - By September 25, 2025, 226k common units had been repurchased at an aggregate cost of $1.64 million, at an average price of $7.24 per common unit[15] - Refinancing of the Tove Knutsen was completed on September 16, 2025, via sale & leaseback generating $32 million of net proceeds[16] Forward-Looking Statements and Backlog - Contractual backlog expanded to $895 million of fixed contracts averaging 2.6 years, with charterers' options averaging a further 4.2 years (as at June 30, 2025)[26]

Financial Performance - KNOT Offshore Partners LP generated total revenues of $87.1 million for Q2 2025 [1] - The company reported an operating income of $22.2 million and a net income of $6.8 million for the same period [1] - Adjusted EBITDA for Q2 2025 was $51.6 million [1] Liquidity Position - As of June 30, 2025, KNOT Offshore Partners LP had available liquidity of $104.8 million, which included cash and cash equivalents [1]