KNOP Q3 2025 results

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KNOT Offshore Partners (KNOP) announced their Q3 2025 results on 12/05. The partnership results might be moot, given the details on Slide 3 i.e. the sponsor entities (Knutsen & NYK) have made a proposal to acquire the outstanding shares @ $10/unit.

Results are on Slide 4

  • Rev of $96.9M
  • Net Income of $15.1M
  • Distribution of $0.026/unit.

This case in some ways mirrors what occurred 10 - 15 years ago with Overseas Shipping Group (OSG). A then large tanker company peeled off a set of assets that primarily supported US Flag operations, and named the entity OSG America. After a few years, the latter folded back into the parent entity. In the KNOP case, the two sponsor entities are already doing the heavy-lift of managing the vessels, and arranging initial contracts, and follow-on contracts. Why not just fold the subsidiary back into the parent and reduce the logistics and planning side?

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BTW, the other entity that once had a sizable shuttle tanker fleet was Teekay Offshore (TOO). Teekay ran into challenges running the unit and eventually turned it over to Brookfield that renamed the unit Altera Infrastructure. The new owner also ran into problems, and eventually sold the shuttle tanker segment to Angelocoussis Group (more common company is Maran tankers). The other entity that has been growing its shuttle tanker fleet is Tsakos Energy (TEN) - with about 8 newbuild shuttle tankers to join the existing fleet of 5 or 6 existing shuttle tankers, and supporting a Petrobras contract.

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