KNOT Offshore Partners LP ( (KNOP) ) has released its Q4 earnings. Here is a breakdown of the information KNOT Offshore Partners LP presented to its investors.
KNOT Offshore Partners LP is a publicly traded master limited partnership that owns, operates, and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea. The company is known for its focus on generating stable cash flows through long-term employment with high-quality counterparties.
In its latest earnings report for the fourth quarter of 2024, KNOT Offshore Partners LP reported total revenues of $91.3 million, an operating income of $34.7 million, and a net income of $23.3 million. The company also generated an Adjusted EBITDA of $63.1 million and maintained a high fleet utilization rate of 98.3% for scheduled operations.
Key financial highlights include a significant increase in revenues compared to the previous quarter, driven by higher charter revenues and insurance proceeds. The company also reported a strong liquidity position with $90.4 million in available liquidity, comprising cash and cash equivalents and undrawn credit facilities. Strategic moves included securing over 94% charter coverage for 2025 and approximately 75% for 2026, alongside new contracts and extensions.
Looking ahead, KNOT Offshore Partners LP’s management remains optimistic about the growing demand in the shuttle tanker market, particularly in Brazil, where production growth is expected to outpace supply. The company plans to focus on long-term charter contracts, liquidity building, and accretive dropdown transactions to enhance cash flow generation and unitholder value.
Overall, KNOT Offshore Partners LP is well-positioned to benefit from the improving market conditions and aims to maintain its leadership role in the shuttle tanker sector, leveraging its strategic partnerships and market presence.
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