Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $96.9 million, with operating income at $30.6 million and net income at $15.1 million. Adjusted EBITDA was reported at $61.6 million [4][9] - Available liquidity as of September 30, 2025, was $125.2 million, consisting of $77.2 million in cash and cash equivalents and $48 million in undrawn credit facilities, which is $20.4 million higher than at the end of Q2 2025 [4][9] Business Line Data and Key Metrics Changes - The company operated with a utilization rate of 99.9%, accounting for scheduled dry docking, resulting in an overall utilization of 96.5% [4] - The company extended its backlog to $963 million in fixed contracts, averaging 2.6 years, with potential for more if all options are exercised [9][12] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by FPSO startups and ramp-ups, which have positively impacted shuttle tanker demand growth [8][12] - Petrobras' five-year plan for 2026 to 2030 indicates that overall production volumes and project startup timelines are in line with or above prior expectations, suggesting a favorable outlook for the Brazilian offshore market [12] Company Strategy and Development Direction - The company has initiated a buyback program, purchasing nearly 385,000 common units at an average price of $7.87 per unit, which concluded in October [5][26] - The company is focused on prudent debt repayment, targeting $95 million or more per year, to manage its depreciating asset base effectively [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the charter market, indicating that charterers' options are likely to be exercised due to favorable market conditions [11] - The company is optimistic about the future demand for shuttle tankers, anticipating a medium-term shortage against forthcoming production [13] Other Important Information - The company received an unsolicited and non-binding offer from its sponsor, KNOT, to buy publicly owned common units for $10 each, which is currently under evaluation by the Conflicts Committee [3][4] - The company has completed refinancing of two facilities, including a $71 million loan secured by the Synnøve Knutsen and a $25 million revolving credit facility [7][10] Q&A Session Summary Question: Can you provide insight on the potential rate change for Fortaleza when it moves to KNOT? - Management refrained from commenting on specific rates but indicated satisfaction with the expected rate [18][19] Question: Will G&A expenses remain stable despite the acquisition of Dan Cisne? - Management confirmed that G&A is not expected to change materially, maintaining around $1.6 million per quarter [21] Question: Has the unit buyback program concluded? - Management confirmed that the buyback program has concluded, stopping at approximately $3 million instead of the full $10 million authorization [24][26] Question: What is the expected timeframe for the independent committee's evaluation process? - Management stated that all available information has been disclosed, and further details will depend on the Conflicts Committee's discussions with KNOT [27][29]