KNOT Offshore Partners LP Q3 FY2025 earnings call

• On July 2, purchased the Daqing Knutsen from the sponsor with 7 years of a guaranteed higher rate and announced a buyback program, purchasing just under 385,000 common units at an average of $7.87 per unit, completed in October.
• Completed 2 refinancings in Q3: a $25 million revolving credit facility with NTT and a sale and leaseback for Tove Knutsen increasing capital by net $32 million.
• Secured extensions: August extension with Shell for Hilda Knutsen (3 months firm, then options) and September extension with Equinor for Bodil Knutsen (contracted through March 2029 with options).
• In Q4: Received an unsolicited nonbinding offer from the sponsor to buy publicly owned common units at $10 per unit; completed $71 million loan secured by Synnøve Knutsen and rolled over $25 million revolving credit facility; signed time charter with KNOT for Fortaleza Knutsen (1-year fixed, then 2 options); announced annual meeting on December 15, nominated Ms. Pernille Østensjø as Independent Director.

In Q3 2025, revenues were $96.9 million. Operating income was $30.6 million, net income was $15.1 million, and adjusted EBITDA was $61.6 million. As of September 30, 2025, available liquidity was $125.2 million, consisting of $77.2 million in cash and cash equivalents and $48 million in undrawn capacity on credit facilities, which was $20.4 million higher than at June 30. Utilization was 99.9% with scheduled drydocking of Tove Knutsen, resulting in 96.5% overall utilization. A cash distribution of $0.026 per common unit was declared and paid in November.

• The ongoing evaluation of the sponsor's unsolicited nonbinding offer by the Conflicts Committee of the Board, with uncertainties around the process and potential outcomes.

Q: Just a couple of questions. One on the Fortaleza. Can you give me an appreciation for the potential rate change versus the current time charter with Transpetro when it moves over to KNOT?

A: We don't comment on individual rates, but we're satisfied with the rate; timing of new contract vs previous, market conditions changed.

Q: Looking at '26 for dry dockings, it looks like it's a pretty active year with at least what, probably 4, potentially 5 dry docks?

A: Yes.

Q: G&A didn't go up at all with addition of Daqing. Is that something to continue to look at G&A at $1.6 million per quarter range?

A: Not expecting material change, acquisition of one vessel doesn't materially increase administrative burdens in G&A.

Q: Did I hear you correctly that the unit buyback program had concluded?

A: That's right, concluded with purchasing just under 385,000 common units at ~$7.87 per unit.

Q: Ballpark time frame for independent committee process evaluating sponsor's offer?

A: All info available is from Nov 3 press release and 13D filing; no further comment beyond that.