KNOT Offshore Partners (KNOP) is a tanker company with a shuttle tanker focus. Despite the name, the company issue a 1099 (for tax purposes). Company fell off my radar after it drastically slashed its payout.
Results for Q2 2024
- Rev of $74.4M
- Operating Income of $1.3M (Figure jumps to $17.7M if one factors out vessel impairments)
- Net Loss of $12.9M (again, that impairment)
- Declared dividend of 2.6c/unit
Subsequent event occurred last month (Sept 2024) - KNOP traded an older shuttle tanker (Dan Cisne) for a newer vessel (Tuva Knutsen) that belonged to its two sponsor entities- Knutsen & NYK.
Shuttle tankers are a challenging niche sector. An owner needs to lock in a good long-term charter for a vessel at the right time. Looking at the slide with charter coverage (Slide 12), things don’t look too bad. Only 2 or 3 vessels need fixtures in 2025. However, some of the existing charters are with the sponsor, and at reduced rates.
With the tiny dividend, KNOP definitely more of a trading idea than a holding idea.