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 a non-cash impairment related to the 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 and $48 million in undrawn capacity on credit facilities, which was $11.8 million higher than September 30 [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 increases in production [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 expressed confidence in the tightening market and expanding backlog, indicating a positive momentum heading into spring 2026 [7] - The company noted that Petrobras continues to deploy significant capital expenditures into a long-term FPSO pipeline, which is expected to increase shuttle tanker demand [12][13] Other Important Information - The company entered into a $71.1 million senior secured term loan facility to refinance Synnøve Knutsen early in Q4 [5] - The discussions regarding the unsolicited offer from KNOT to buy publicly owned common units were concluded with no transaction recommended [3] 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 aware of any valuation exercises on KNOP [17] Question: What is the rationale behind reducing the useful life of vessels from 23 to 20 years? - Management explained that the useful life is a measure of how long a vessel is expected to stay with the current owner, and clients typically prefer vessels under 20 years [19] Question: What will it take for the dividend to come back? - Management stated that capital allocation is continually assessed by directors, and there is no direct formula for when to increase distributions [26] Question: Will the annual general meeting be scheduled for this year? - Management confirmed the intention to satisfy the obligation to hold a meeting during 2026 [28] Question: How is the company prioritizing adding vessels to the fleet? - Management noted that there is no direct priority among capital allocation options, and all are considered simultaneously [36]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $84 million, with operating income at $23.4 million and net income at $7.6 million. Adjusted EBITDA was £52.2 million [4] - The company closed Q1 with $101 million in available liquidity, consisting of £67 million in cash and cash equivalents, plus £34 million in undrawn capacity on credit facilities [4] - The company operated with a 99.5% utilization rate, accounting for the start of two drydockings, resulting in an overall utilization of 96.9% [4] Business Line Data and Key Metrics Changes - The partnership has a strong contracted revenue position of $854 million at the end of Q1, with fixed contracts averaging 2.3 years in duration [6] - The economic rationale for exercising transfer options has strengthened, with expectations for these options to be taken up due to market tightness [6] Market Data and Key Metrics Changes - Significant growth is anticipated in production fields relying on shuttle tankers, particularly in Brazil and the North Sea [5] - The company noted a continued shortage of shuttle tanker capacity projected in the coming years, necessitating newbuild orders [5] Company Strategy and Development Direction - The company aims to pursue long-term charter visibility and accretive dropdowns to support long-term cash flow generation [14] - The strategy includes increasing revenue backlog while lowering the average fleet age through dropdowns from the sponsor [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding industry dynamics and the partnership's positioning to benefit from market conditions [4] - The company is cautiously optimistic about securing additional coverage in the current tight market, either through extensions or new charters [12] Other Important Information - The company has a typical pattern of refinancing debt facilities on comparable terms, with a good track record of refinancing success [10] - The average maturity of interest rate hedges is one and a half years, with new hedges being put in place as suitable terms arise [29] Q&A Session Summary Question: Timing of potential dropdowns from the sponsor - Management stated that each potential transaction is reviewed individually, and there is no clear timing for dropdowns as it depends on when vessels are offered [22] Question: Anticipated refinancing terms - Management indicated they are working towards refinancing at similar or better terms, with ongoing discussions with lenders [24] Question: Impact of interest rate hedges expiring - Management noted that while interest rate hedges will expire, new hedges are put in place on a rolling basis when attractive terms are available [30] Question: Long-term debt increase explanation - The increase in long-term debt was primarily due to a vessel swap transaction that involved assuming $73 million of debt, but the net increase was only $47 million due to debt repayments [72] Question: Future charter rates and renewals - Management could not comment on specific charter rates but indicated that there is typically a small escalation in option terms at renewals [86] Question: Market conditions and demand for shuttle tankers - Management acknowledged that the market is currently tight, which positions the company favorably for future contracts [92] Question: Comparison of dropdowns versus share buybacks - Management emphasized that the board's focus is on fleet growth and capital value rather than share buybacks, although they consider both options [105]