EarningsQ2 2026 Earnings Report
DE:KO4 Q2 2026 EPS Results
Actual EPS€0.09
Consensus EPS-€0.03
Beat/MissBeat by +€0.12
One Year Ago EPS€0.18
DE:KO4 Q2 2026 Revenue Results
Actual Revenue€86.37M
Expected Revenue€79.12M
Beat/MissBeat by +€7.25M
YoY Revenue Growth+11.16%
Earnings Announcement Details
QuarterQ2 2026
Date09/03/2026
TimeAfter Close
Conference CallThursday, September 3, 2026
DE:KO4 Upcoming Earnings
KNOT Offshore Partners's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:KO4 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported solid financial results, higher liquidity, an increased distribution, successful fleet expansion, additional long-term charter coverage, lower-cost refinancing, tightening market conditions, and substantial forward coverage. The main challenges were reduced overall utilization following scheduled drydocking, the removal of two vessels from the drop-down inventory, an upcoming Lena Knutsen facility maturity, and lower firm coverage in 2028 before options are included.Company Guidance
Solid Second-Quarter Financial Results
Q2 revenues were $96.8 million, operating income was $15.6 million, net income was $3.4 million, and Adjusted EBITDA was $57.6 million.
Improved Liquidity Position
As of June 30, 2026, available liquidity was $143.3 million, consisting of $95.3 million in cash and cash equivalents and $48 million of undrawn capacity. Liquidity was $2.6 million higher than at March 31.
Distribution Increased
KNOP declared and paid a cash distribution of $0.075 per common unit in August, up from $0.05 in the prior quarter and $0.026 per quarter for several years before that.
Hilde Knutsen Acquisition Adds Fleet Growth and Contracted Cash Flow
On September 1, 2026, KNOP purchased the Hilde Knutsen from KNOT for $113 million, assuming an $89.4 million debt facility and $0.8 million of capitalized financing fees, resulting in a net cash cost of $24.4 million. The vessel is on time charter to Petrobras through November 2034, with an additional five years of charter options. Management said the acquisition diversifies and extends the long-term contract pipeline, reduces average fleet age, and adds exposure to the in-demand shuttle tanker asset class.
Additional Long-Term Charter Coverage Secured
KNOP executed a three-year fixed time charter for Hilda Knutsen with ENI beginning in June 2027, with three one-year charterer options; a two-year fixed time charter for Recife Knutsen with Transpetro beginning in Q3 2026; and a three-year fixed time charter for Ingrid Knutsen with ENI beginning in October 2026, with three one-year options. The Ingrid Knutsen charter directly continues the existing ENI charter and replaces its existing options.
Successful Debt Refinancing at Lower Margin
KNOP refinanced the loan secured by Taurus, Fygdas, Lena, Anna, and Brasil Knutsen through a new $225 million five-year senior secured term loan arranged by DNB. The interest rate was reduced meaningfully to SOFR plus 1.65%.
Tightening Shuttle Tanker Markets
Management said markets in both Brazil and the North Sea continue to tighten, driven by a robust multiyear FPSO pipeline, production growth, and continuing investments in exploration and existing project expansion. Shuttle tanker service volumes increased across both markets, tightening the supply-demand balance even as new vessels were delivered.
Strong Contract Backlog
KNOP had $881.2 million of fixed contracts at quarter end, averaging 2.5 years in duration, with charterer options averaging an additional four years.
Fleet Age Improved Through Acquisition
At quarter end, KNOP's fleet of 19 vessels had an average age of 10.7 years. Management said the acquisition of Hilde Knutsen reduces the average fleet age by nearly half a year.
Ongoing Debt Repayment and Refinancing Progress
KNOP is continuing to repay debt at approximately $95 million per year, which management considers prudent for a depreciating asset base. The partnership was also well advanced in refinancing the $65 million facility secured by Lena Knutsen, which is due later in October.
Broad Lender Access and Favorable Financing History
Management said KNOP has historically benefited from access to a wide pool of lenders and attractive bank financing, including refinancing experience during significantly weaker shuttle tanker markets than the current market. The average margin on floating-rate debt during Q2 was 2.21% over SOFR.
Strong Forward Charter Coverage
KNOP is fully chartered for the remainder of 2026. For 2027, firm coverage is 92%, or 96% including charterer options. For 2028, firm coverage is 65%, or 93% including charterer options. Management said it expects the charterer options to be picked up based on current charter market strength.
Potential for Continued Distribution Growth
Management said accretive drop-downs and an improving charter market should support multiple gradual distribution increases over the coming quarters and years, while materially extending the partnership's long-term cash-generation runway.
Positive Offshore Production Outlook
Management highlighted Petrobras commentary pointing to record production, a strong and expanding offshore production outlook, and continued FPSO deployment.
Favorable Structural Market Dynamics
Management said offshore extraction continues to take market share from traditional onshore production, while shuttle tanker service for FPSOs remains dominant compared with constructing new pipelines. Brazilian and North Sea offshore build-outs were described as having strong momentum.
Limited and Non-Speculative Shuttle Tanker Order Book
Management said the shuttle tanker order book remains non-speculative and insufficient to meet anticipated demand levels, supporting KNOP's view that it is well positioned to pursue long-term growth opportunities.
DE:KO4 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed