KNOT Offshore Partners - Distribution Cut Close At Hand Now

Nov. 30, 2022 5:29 PM ETKNOT Offshore Partners LP (KNOP)TNP125 Comments
Henrik Alex profile picture
Henrik Alex


  • Company reports weak Q3 results with the distribution coverage ratio well below 1.00 for the third quarter in a row now.
  • Results continue to be pressured by an elevated number of scheduled drydockings with additional impact expected in the current quarter and also for next year.
  • Q4 results are likely to be equally weak due to a mix of scheduled and unscheduled offhire days and the North Sea fleet operating at reduced rates or sitting idle.
  • Company is considering trading some of its North Sea vessels in the conventional tanker market but warns investors of potentially insufficient returns.
  • A near-term distribution cut appears to be close at hand now. Given the ugly near-term outlook, investors should consider selling existing positions and moving on.
Von einem Schiff, das in der Arktis segelt. Landschaft der Arktis

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On Tuesday, leading shuttle tanker operator KNOT Offshore Partners (NYSE:NYSE:KNOP) reported another set of weak quarterly results with Q3 representing the third consecutive quarter with a distribution coverage ratio of well below 1.00:

Key Financial Metrics

Company Press Releases

Results continue to

This article was written by

Henrik Alex profile picture
I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research at no charge to followers and the entire Seeking Alpha community.

Disclosure: I/we have a beneficial short position in the shares of KNOP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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