KNOT Offshore Partners LP Issues Strategic and Operational Update

  • Partnership to Acquire 2022-Built DP2 Suezmax Shuttle Tanker Daqing Knutsen
  • Sale and Leaseback of Tove Knutsen to Unlock Approximately $32 Million in Proceeds
  • Partnership Launches $10 Million Common Unit Buyback Program

KNOT Offshore Partners Provides Strategic and Operational Update on Fleet Growth, Refinancing, and Capital Return Initiatives

KNOT Offshore Partners LP (NYSE: KNOP) (“the Partnership”) today announced a comprehensive strategic and operational update, highlighting key developments in fleet expansion, refinancing, chartering activity, and capital return measures, including a new unit buyback program.

Key Highlights:

  • Sale and Leaseback of Tove Knutsen:
    The Partnership is finalizing a sale and leaseback agreement for the Tove Knutsen, expected to generate approximately $32 million in net proceeds. The deal is anticipated to close by September 16, 2025, following the execution of definitive documentation. The 10-year leaseback will be executed through a Japanese-based lessor.
  • Acquisition of Daqing Knutsen:
    KNOP has agreed to acquire the 2022-built, 154,000 DWT DP2 Suezmax shuttle tanker Daqing Knutsen from Knutsen NYK Offshore Tankers AS for a total cost of approximately $24.8 million after adjustments. The vessel is currently on charter to PetroChina in Brazil through July 2027, with KNOT guaranteeing the charter hire rate through 2032, effectively securing seven years of fixed revenue.
  • $10 Million Common Unit Buyback Program:
    The Partnership’s Board has authorized the repurchase of up to $10 million of its common units over the next 12 months. Purchases may be made on the open market or via private transactions, subject to liquidity, market conditions, and other applicable factors.
  • Stable Quarterly Distribution:
    KNOP has declared a quarterly cash distribution of $0.026 per common unit for Q2 2025, payable on August 7, 2025, to unitholders of record as of July 28, 2025.

CEO Commentary:

CEO Derek Lowe stated, “With improving market fundamentals and greater operational clarity, we’re taking decisive steps to grow and enhance long-term value for our unitholders. The acquisition of the Daqing Knutsen and the refinancing of the Tove Knutsen reflect our disciplined capital approach and strengthen our fleet and charter profile. Additionally, the newly approved buyback program underscores our confidence in the Partnership’s intrinsic value.”

He continued, “These developments allow us to grow accretively, preserve liquidity, and return capital to investors, while continuing to focus on securing long-term charters with high-quality counterparties.”

Operational and Financial Update:

  • Liquidity Position:
    As of June 30, 2025, available liquidity stood at approximately $104 million, comprising $66 million in cash and $39 million in undrawn revolving credit facility capacity.
  • Chartering Updates:
    • Raquel Knutsen’s charter with Repsol Sinopec has been extended through June 2028.
    • Brasil Knutsen has extended its charter with PetroRio through September and will begin work with Equinor thereafter.
    • Windsor Knutsen commenced a new charter with ExxonMobil on June 4 following her scheduled drydocking.
    • Tove Knutsen is en route for a scheduled mid-July drydock after completing a conventional charter voyage to Europe.

KNOP remains focused on enhancing fleet value, optimizing charter coverage, and maintaining a sustainable distribution policy. The combination of accretive fleet investments, strengthened financial flexibility, and disciplined capital return initiatives position the Partnership to deliver continued value to unitholders.

About KNOT Offshore Partners LP

KNOT Offshore Partners LP owns, operates and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea.

KNOT Offshore Partners LP is structured as a publicly traded master limited partnership but is classified as a corporation for U.S. federal income tax purposes, and thus issues a Form 1099 to its unitholders, rather than a Form K-1. KNOT Offshore Partners LP’s common units trade on the New York Stock Exchange under the symbol “KNOP”.

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