search icon
      blog search icon

      Interim Results Drove KNOT Offshore (KNOP) Higher After-Hour

      By Fahim Awan

      Published on

      December 14, 2023

      8:53 AM UTC

      Interim Results Drove KNOT Offshore (KNOP) Higher After-Hour

      KNOT Offshore Partners LP (NYSE: KNOP) experienced a surge in market activity subsequent to the close of trading on Wednesday. The value of KNOT Offshore stock ascended an impressive 6.81%, reaching $5.80 in the extended trading session. The standard trading session concluded with KNOP stock at $5.43, reflecting a 1.69% increase. This surge was precipitated by the disclosure of the company’s interim quarterly results.

      For the three months concluding on September 30, 2023 (“Q3 2023”), KNOT Offshore unveiled robust financial performance. Notably, Q3 2023 featured a commendable 98% fleet utilization rate for scheduled operations, sustained revenue and operating income, and the successful refinancing mandated for 2023.

      During Q3 2023, KNOT Offshore achieved total revenues amounting to $72.7 million, accompanied by operating income of $20.6 million and net income totaling $12.6 million. The adjusted EBITDA for the quarter stood at $48.1 million, and the company boasted $58.2 million in liquid assets.

      The fleet operated at an impressive 98.8% utilization for scheduled operations in Q3 2023, with a slightly lower figure of 97.4% when accounting for the scheduled drydockings of the Brasil Knutsen and the Hilda Knutsen, both completed at the onset of Q3 2023.

      On October 12, 2023, KNOP declared a quarterly cash distribution of $0.026 per common unit for Q3 2023, disbursed on November 9, 2023, to all common unitholders recorded as of October 26, 2023. Concurrently, a quarterly cash distribution of $1.7 million was declared for holders of Series A Convertible Preferred Units with respect to Q3 2023.

      By November 15, 2023, KNOT Offshore had successfully concluded the refinancing of the second $25 million revolving credit facility, extending it until November 2025 on comparable terms. On September 13, 2023, a 100-day extension to the existing bareboat charter party for the Dan Cisne was inked with Transpetro, extending the vessel’s fixed employment until late December 2023.

      The company expects the redelivery of the Dan Cisne and Dan Sabia in December 2023 and January 2024, respectively, following the expiration of the existing bareboat charter parties. KNOT Offshore is actively marketing both vessels for new third-party employment and engaging in discussions with existing charterers, including its sponsor, Knutsen NYK Offshore Tankers AS (“Knutsen NYK”).

      More From Stocks telegraph