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 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]