KNOT Offshore Q2: $96.8M Revenue, Hedda Knutsen Acquisition Closes, $225M Refinancing
KNOP sits 48% above its 52-week low of $7.74.
Summary
KNOT Offshore Partners reported Q2 2026 revenue of $96.8 million and net income of $3.4 million, closed the Hedda Knutsen acquisition, refinanced $225 million of debt, and extended multiple charters. Forward coverage is 97% for H1 2027.
Key Events · Earnings and Guidance · KNOP
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Q2 Revenue Up 5% Sequentially
Total revenues of $96.8 million in Q2 2026, up from $92.0 million in Q1 2026, driven by $1.9 million in loss-of-hire insurance recoveries and fewer off-hire days. Net income was $3.4 million, up from $2.6 million in Q1.
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Hedda Knutsen Acquisition Closed
On September 1, 2026, the Partnership acquired the 2024-built shuttle tanker Hedda Knutsen for $113.0 million, less $89.4 million of assumed debt, for a net initial cost of approximately $24.4 million. The vessel is on charter to Petrobras through November 2034.
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$225M Refinancing Completed
A new $225 million senior secured credit facility with DNB Bank ASA refinances five vessels at SOFR + 1.65%, with a $111.1 million balloon due June 2031. This replaces term loans that were due to mature in September 2026.
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Charter Extensions and New Agreements
Galp Sinopec extended the Live Knutsen charter to December 2029; Equinor extended the Synnøve Knutsen to February 2029; Eni agreed to a new 3-year charter on the Ingrid Knutsen starting October 2026; Eni also signed a 3-year charter for the Hilda Knutsen starting June 2027.
Analysis · KNOP · Energy & Transportation
KNOT Offshore Partners delivered a solid Q2 with revenue up 5% sequentially to $96.8 million and net income of $3.4 million, but the real story is the fleet expansion and balance sheet repositioning. The Hedda Knutsen acquisition closed September 1 at a net cost of $24.4 million, adding a vessel on charter to Petrobras through 2034. A new $225 million credit facility refinances five vessels at SOFR + 1.65%, pushing maturity to 2031 and removing near-term refinancing risk. Forward charter coverage stands at 97% for H1 2027 and 87% for H2 2027, giving strong revenue visibility. The Partnership also signaled intent to acquire up to 10 additional dropdown vessels from sponsor Knutsen NYK over the next 4-5 years, a meaningful growth pipeline. Trading near its 52-week high, the market is already pricing in much of this optimism, but the combination of accretive acquisition, refinancing, and charter extensions supports the thesis of stable, growing cash flows.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 35.8% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, KNOP was trading at $11.44 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $388M. The 52-week trading range was $7.74 to $11.78. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.