Had forgotten about this name. KNOT Offshore Partners (KNOP), is a shuttle tanker company that is backed by two major shipping entities (Knutsen & NYK). The partnership reported Q1 2025 results on 05/21/25.
Results include
- Revenue of $84M
- Adj EBITDA $52.2M
- Net Income of $7.6M
- Cash distribution of 2.6c/sh (Type C, so shares)
- Completed a swap transaction with parent entities and gained a new vessel, Live Knutsen (2021-build) Slide 6
Years ago, got burned by KNOP investment as they struggled to manage their debt. There is a couple of slides that discuss their debt. For me, the relevant one is Slide 12, that shows balloon payments in 2025 and 2026. For me, the risk is not that KNOP will fail. The risk is the sponsors will step in to bail out KNOP - shareholders would get diluted, or a low-ball offer for their shares.