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Mar 31
Knot Offshore Partners Q1 2025 Earnings Report
KNOT Offshore Partners reported stable financial results in Q1 2025, supported by high fleet utilization and consistent revenue generation.
Key Takeaways
KNOT Offshore Partners delivered solid operational performance in Q1 2025 with high vessel utilization and consistent earnings, despite a decline in operating income from the previous quarter.
Generated $84 million in total revenue for Q1 2025.
Achieved 96.9% fleet utilization, with 99.5% when adjusted for scheduled drydockings.
Reported $52.2 million in adjusted EBITDA and $7.6 million in net income.
Ended the quarter with $100.8 million in available liquidity.
Knot Offshore Partners
Knot Offshore Partners
Knot Offshore Partners Revenue by Geographic Location
Revenue by Geographic Location
Brazil Revenue
CapyFin.comNorth Sea Revenue
CapyFin.com Forward Guidance
The company remains optimistic about long-term shuttle tanker demand, particularly in Brazil, and plans to pursue dropdown acquisitions and increased charter coverage.
Positive Outlook
- Secured 96% of charter coverage for the remainder of 2025
- Brazilian shuttle tanker market showing tightening conditions and strong demand
- Growing FPSO activity expected to sustain high shuttle tanker utilization
- Opportunities for accretive dropdown transactions to boost long-term cash flow
- Continued focus on long-term employment with high-quality counterparties
Challenges Ahead
- North Sea market remains subdued due to lingering project delays
- High vessel operating expenses driven by maintenance and EU ETS costs
- Exposure to floating interest rate fluctuations remains significant
- Decline in operating income versus previous quarter
- Market value volatility from non-hedged derivative instruments