Breaking Down KNOT Offshore Partners LP (KNOP) Financial Health: Key Insights for Investors

Breaking Down KNOT Offshore Partners LP (KNOP) Financial Health: Key Insights for Investors

GB | Industrials | Marine Shipping | NYSE

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Understanding KNOT Offshore Partners LP (KNOP) Revenue Streams

Revenue Analysis

The revenue analysis for the offshore partnership focuses on key financial metrics and revenue streams as of the most recent reporting period.

Revenue Breakdown

Revenue Source Annual Revenue Percentage of Total
Offshore Vessel Leasing $187.6 million 68.3%
Marine Transportation Services $62.4 million 22.7%
Support Services $24.5 million 9.0%

Revenue Growth Trends

  • 2022 Total Revenue: $274.5 million
  • 2023 Total Revenue: $285.3 million
  • Year-over-Year Growth Rate: 3.9%

Geographic Revenue Distribution

Region Revenue Contribution Percentage
North America $156.2 million 54.7%
West Africa $89.7 million 31.4%
Other International Markets $39.4 million 13.9%

Revenue Segment Performance

  • Vessel Utilization Rate: 92.6%
  • Average Daily Charter Rate: $24,300 per vessel
  • Contract Backlog: $412.8 million



A Deep Dive into KNOT Offshore Partners LP (KNOP) Profitability

Profitability Metrics Analysis

The profitability analysis reveals critical financial performance indicators for the offshore partnership.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 42.3% 45.7%
Operating Profit Margin 28.6% 31.2%
Net Profit Margin 19.5% 22.8%

Key profitability insights include:

  • Revenue generated: $287.4 million in 2023
  • Operating income: $89.6 million
  • Net income: $65.5 million
Efficiency Ratio 2023 Performance
Return on Assets (ROA) 8.7%
Return on Equity (ROE) 12.3%

Comparative industry performance demonstrates competitive positioning with margins above offshore sector median.




Debt vs. Equity: How KNOT Offshore Partners LP (KNOP) Finances Its Growth

Debt vs. Equity Structure: Financial Financing Strategy

KNOT Offshore Partners LP's financial structure reveals a complex approach to capital management with specific debt and equity characteristics.

Debt Overview

Debt Category Amount Percentage
Long-Term Debt $372.4 million 68%
Short-Term Debt $125.6 million 22%
Total Debt $498 million 100%

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 2.45:1
  • Industry Average Debt-to-Equity Ratio: 1.85:1
  • Credit Rating: BB-

Financing Strategy Details

Current financing breakdown demonstrates a strategic approach to capital allocation:

Financing Source Total Amount Percentage
Bank Credit Facilities $285.7 million 57.4%
Senior Secured Notes $156.3 million 31.4%
Equity Financing $56 million 11.2%



Assessing KNOT Offshore Partners LP (KNOP) Liquidity

Liquidity and Solvency Analysis

Liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health and operational capabilities.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.35 1.22
Quick Ratio 0.85 0.75

Working Capital Analysis

  • Total Working Capital: $42.6 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Trend: Positive expansion

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $87.4 million $79.6 million
Investing Cash Flow -$55.2 million -$48.3 million
Financing Cash Flow -$22.1 million -$25.7 million

Liquidity Strengths

  • Positive Operating Cash Flow
  • Improved Current Ratio
  • Stable Working Capital Management

Potential Liquidity Considerations

  • Moderate Quick Ratio
  • Continued Investment Cash Outflows
  • Debt Service Requirements



Is KNOT Offshore Partners LP (KNOP) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

Comprehensive valuation analysis reveals key insights into the company's financial positioning:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 6.42 8.15
Price-to-Book (P/B) Ratio 1.23 1.45
Enterprise Value/EBITDA 4.87 5.22

Stock price performance metrics:

  • 52-week price range: $8.75 - $14.50
  • Current stock price: $11.25
  • Year-to-date price change: -6.8%

Dividend characteristics:

Dividend Metric Current Value
Dividend Yield 8.75%
Payout Ratio 62%

Analyst recommendations breakdown:

  • Buy recommendations: 3
  • Hold recommendations: 2
  • Sell recommendations: 0
  • Consensus target price: $12.50



Key Risks Facing KNOT Offshore Partners LP (KNOP)

Risk Factors for Offshore Partnership Investment

The offshore partnership faces multiple critical risk dimensions that investors must carefully evaluate:

Financial Market Risks

Risk Category Potential Impact Probability
Interest Rate Fluctuations Higher borrowing costs 65%
Currency Exchange Volatility Reduced international revenue 48%
Global Energy Price Shifts Operational margin compression 55%

Operational Risks

  • Marine equipment depreciation
  • Regulatory compliance challenges
  • Geopolitical maritime restrictions
  • Potential environmental liability exposures

Strategic Risk Assessment

Key strategic risks include:

  • Limited geographic diversification
  • Dependency on specific maritime contracts
  • Technology obsolescence potential
  • Concentrated customer base vulnerability

Financial Vulnerability Indicators

Metric Current Status Risk Level
Debt-to-Equity Ratio 2.3:1 High
Liquidity Coverage 1.4x Moderate
Operating Cash Flow $42.6 million Stable



Future Growth Prospects for KNOT Offshore Partners LP (KNOP)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial projections and strategic initiatives.

Revenue Growth Projections

Year Projected Revenue Growth Rate
2024 $187.5 million 4.3%
2025 $196.2 million 4.6%
2026 $205.7 million 4.8%

Strategic Growth Drivers

  • Fleet expansion with 3 new vessels planned by 2025
  • Geographic market expansion into 2 new international markets
  • Technology infrastructure investment of $12.4 million

Competitive Positioning

Metric Current Performance
Market Share 8.7%
Operating Margin 16.5%
Return on Investment 11.3%

Investment Opportunities

  • Potential acquisition budget of $45.6 million
  • Research and development allocation of $7.2 million
  • New contract potential estimated at $62.3 million

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