Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $96.5 million, with an operating income of $8.4 million on a fully reported basis, or $28.6 million when excluding the impact of the impairment on Bodil Knutsen [4] - Net income on a fully reported basis was a loss of $6.2 million, whereas it was net income of $14 million when excluding the impairment [4] - Adjusted EBITDA was $59.3 million, and as of December 31, 2025, the company had $137 million in available liquidity, consisting of $89 million in cash and cash equivalents, plus $48 million in undrawn capacity on credit facilities [4] Business Line Data and Key Metrics Changes - The company operated with a 99.5% utilization rate, accounting for the scheduled dry docking of Synnøve Knutsen, resulting in an overall utilization of 96.4% [5] - A cash distribution of $0.026 per common unit was declared following Q4, paid in February [5] Market Data and Key Metrics Changes - The markets in both Brazil and the North Sea are tightening, driven by FPSO startups, ramp-ups, expansions, and technology-driven production increases [8] - The backlog as of December 31, 2025, was sustained at $929 million in fixed contracts averaging 2.6 years, with potential for more if all options are exercised [8] Company Strategy and Development Direction - The company is focused on capital allocation decisions, including distributions, buybacks, and investments in the fleet, with no direct formula for prioritizing these options [26][36] - The company is encouraged by its refinancing experiences and the strong signal regarding lenders' continued appetite for financing [10] Management's Comments on Operating Environment and Future Outlook - Management noted a stronger financial position compared to previous years, with a focus on maintaining a solid balance sheet and generating significant cash flow [27] - The company anticipates that shuttle tanker demand will absorb the current order book, with a medium-term shortage of shuttle tankers expected against forthcoming production [13] Other Important Information - The company entered into a $71.1 million senior secured term loan facility to refinance Synnøve Knutsen during Q4 [5] - The discussions regarding the unsolicited offer from KNOT were terminated, with no transaction recommended [3][7] Q&A Session Summary Question: Has there been a valuation of KNOP in connection with the TSSI bond issue? - Management indicated that anyone interested in the bond's circumstances should refer to the offering materials, as they were not directly involved in valuation exercises [17] Question: What is the rationale behind reducing the useful life of vessels from 23 to 20 years? - Management explained that the reduction reflects market preferences for vessels under 20 years, as clients typically seek newer vessels [19] Question: What will it take for the dividend to come back? - Management stated that capital allocation is continually assessed by directors, with no direct formula for when distributions will be increased [26] Question: Are there any priorities for drop-downs versus dividends or accelerated debt repayment? - Management clarified that there is no working priority among different capital allocation options [36]

Financial Performance - Q3 2025 - Revenues reached $41.4 million, a 25.5% increase compared to $33.0 million in Q3 2024, driven by drybulk fleet additions[5] - Operating income increased significantly to $10.3 million in Q3 2025, a roughly 72% increase ($4.3 million) compared to Q3 2024 and a 22.6% increase ($1.9 million) compared to Q2 2025[6] - EBITDA for Q3 2025 was $17.9 million, a 46.7% increase compared to $12.2 million in Q3 2024[6] - Net income for Q3 2025 was $11.0 million, compared to $10.0 million in Q3 2024[6] Financial Performance - 9M 2025 - Net income for 9M 2025 reached $35.0 million[6] - EBITDA for 9M 2025 was $49.7 million[6] - Operating cash flow generation for 9M 2025 was $57.0 million[6] Liquidity and Fleet - Cash and cash equivalents, including time deposits, amounted to approximately $100 million as of September 30, 2025, with a current cash base of about $172 million[6] - The company concluded a capital raise of $60 million through a registered direct equity offering, intended for further fleet growth[6] - Fleet operational utilization for Q3 2025 was 88.7%, compared to 65.6% in Q3 2024[6] - Approximately 75% of the total fleet calendar days were dedicated to time charter activity, while about 25% were dedicated to spot activity[4]

Financial Data and Key Metrics Changes - The company generated net income of approximately $99 million for the third quarter, with additional net income reported at $98 million or $0.81 per share, and net income for the quarter around $93 million or $0.77 per share [2][3][4] - Total contracted revenues amount to $2.6 billion, with a remaining time charter duration of about 3.2 years [3][4] - Liquidity stands at about $560 million [4] Business Line Data and Key Metrics Changes - The company remains the sole shareholder of 69 containerships and the controlling shareholder of Neptune Maritime Leasing [2] - Eight vessels have been fixed with a forward start for periods ranging from 12 to 38 months, resulting in increased contracted revenues of about $310 million [2][4] - The fleet deployment is at 100% for 2025 and 80% for 2026 [2][4] Market Data and Key Metrics Changes - The charter market remains strong with an idle fleet of less than 1%, indicating a fully employed market [3][5] - Charter rates in the containership market are stable and healthy, supported by a vessel shortage and steady demand [3][5] - The positive outcome from trade discussions between the U.S. and China is expected to contribute to increased global trade flows [3] Company Strategy and Development Direction - The company has concluded newbuild contracts for two additional 3,100 TEU containerships, bringing the total newbuilding orders to six, with expected delivery in Q1 2028 [4] - The company is focusing on both newbuildings and potential second-hand acquisitions, indicating a proactive approach to fleet expansion [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the charter market remains healthy, with demand for ships easily absorbed, despite geopolitical events that may affect future conditions [10][11] - There is uncertainty regarding the sustainability of recent increases in freight rates, which may be influenced by external factors such as geopolitical tensions [17][19] Other Important Information - Neptune Maritime Leasing has funded or committed to fund 50 shipping assets for a total amount exceeding $650 million [3][5] - The company maintains a long uninterrupted dividend track record [5] Q&A Session Summary Question: How has chartering activity developed over the past couple of months? - Management indicated that box rates have been increasing, particularly on the US West Coast trade route, and that there is a shortage of ships, leading to a healthy charter market [10] Question: Is the recent increase in freight rates sustainable? - Management acknowledged that the increase may be due to front-running and cannot predict long-term sustainability, as historical trends show a negative trajectory [17][19] Question: Can you discuss the acquisition of the second-hand vessel and future opportunities? - The acquisition was a structured sale-and-leaseback deal with Maersk, and management expressed that there may be more opportunities in the future [12] Question: What is the likelihood of Maersk exercising charter options? - Management stated that it is up to the charterer to decide based on market conditions, and they have conservatively factored in a one-year time charter period [19]