Knot Offshore Stock Sails Higher On Q4 Revenue Beat, Retail Feels More Bullish
The company said that the outlook is improving even further in Brazil, its top offshore oil market.
FollowKnot Offshore Partners (KNOP) stock gained 12.3% on Friday after the company’s fourth-quarter revenue topped Wall Street’s estimates.
The company, which operates shuttle tankers under long-term charters, posted quarterly revenue of $91.3 million for the three months ended Dec. 31, while analysts expected it to report $76.50 million, according to FinChat data.
The UK-based company reported a net income of $23.2 million for the fourth quarter, compared with a net loss of $3.77 million a year earlier.
“We have now secured over 94% of charter coverage for the remainder of 2025 and approximately 75% for 2026,” CEO Derek Lowe said.
The company said that in Brazil, its top offshore oil market, the outlook is improving even further, with robust demand and increasing charter rates driven by Petrobras’ continued high production levels.
“We continue to believe that growth of offshore oil production in shuttle tanker-serviced fields across both Brazil and the North Sea is on track to outpace shuttle tanker supply growth throughout the coming years,” Lowe added,
The company said that increasing the number of shuttle tankers reaching or exceeding the typical retirement age would also help tighten the market.
Retail sentiment on Stocktwits moved higher into the ‘bullish’ (73/100) territory than a day ago, while retail chatter was ‘high.’
KNOP’s Sentiment Meter and Message Volume as of 02:15 a.m. ET on March 21, 2025 | Source: Stocktwits
One retail trader said there is more than a 50% chance of the company hiking its dividend for the first quarter as the “rate of cash generation is now elevated and holding.”
Knot Offshore shares have gained nearly 16% year-to-date (YTD).
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