KNOT Offshore Q4 revenue beats estimates on higher fleet utilization

Overview

• Shuttle tanker operator's Q4 revenue rose, beating analyst expectations

• Company posted Q4 net loss after $20.3 mln non-cash impairment on Bodil Knutsen

• Company completed $3 mln unit buyback program during the period

Outlook

• Company has secured 98% charter coverage for H1 2026, 88% for H2 2026

• Knot Offshore expects shuttle tanker market to remain favorable medium and long term

• Company will increase vessel depreciation charges from Q1 2026 due to revised useful life estimates

Result Drivers

• IMPAIRMENT CHARGE - Q4 operating income and net income were reduced by a $20.3 mln non-cash impairment on Bodil Knutsen

• INSURANCE RECOVERIES - Lower adjusted operating income and net income versus Q4 2024 were mainly due to absence of extraordinary loss of hire insurance recoveries that benefited the prior year

• HIGH FLEET UTILIZATION - Fleet operated with 99.5% utilization for scheduled operations in Q4 2025, supporting revenue stability

Company press release: ID:nBwlTng9a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy."

• Wall Street's median 12-month price target for Knot Offshore Partners LP is $12.00, about 21.3% above its March 24 closing price of $9.89

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

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