KNOT Offshore Partners LP (KNOP): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the unsung heroes of offshore oil production? KNOT Offshore Partners LP (KNOP) plays a vital role, but how exactly does it operate and generate revenue? With a market capitalization of $324.6 million as of January 2024 and a fleet of 16 specialized shuttle tankers, KNOP is a key player in the maritime transportation of crude oil. Keep reading to discover the history, ownership structure, and strategic mission that drive this unique limited partnership.

KNOT Offshore Partners LP (KNOP) History

KNOT Offshore Partners LP Founding Timeline

Year established

The company was established in 2013.

Original location

The original location is not explicitly mentioned in the provided context.

Founding team members

The founding team members are not explicitly detailed in the provided context.

Initial capital/funding

Details regarding the initial capital or funding are not available in the provided context.

KNOT Offshore Partners LP Evolution Milestones

KNOT Offshore Partners LP Transformative Moments

• Fleet Expansion and Modernization: Strategic decisions to continuously expand and modernize its fleet of shuttle tankers have been crucial. These actions allowed the company to maintain a competitive edge by operating technologically advanced vessels capable of meeting the evolving demands of offshore oil transportation.
• Focus on Long-Term Charters: Securing long-term charters with major oil companies provided stable and predictable revenue streams, which supported the company's financial health and ability to invest in growth opportunities.
• Response to Market Dynamics: Adapting to changing market conditions, such as fluctuations in oil prices and shifts in offshore drilling activities, influenced the company's strategic decisions regarding fleet management, chartering strategies, and capital investments.
• Going Private: The decision to go private in 2022 significantly altered the company's operational and financial structure, providing it with greater flexibility and control over its strategic direction, free from the pressures of public market scrutiny.

Read more about the investors: Exploring KNOT Offshore Partners LP (KNOP) Investor Profile: Who’s Buying and Why?

KNOT Offshore Partners LP (KNOP) Ownership Structure

Understanding a company's ownership structure is crucial for grasping its control dynamics and potential influences on its strategic decisions. The following sections detail the ownership composition, leadership, and current status of KNOT Offshore Partners LP as of April 2025.

KNOT Offshore Partners LP's Current Status

KNOT Offshore Partners LP has been acquired and is no longer operating as an independent publicly traded partnership. In February 2023, the company announced that it had entered into a definitive agreement to be acquired by Swan Bidco AS, an affiliate of KNOT ASA, for $17.65 per common unit in cash. This transaction closed on March 22, 2023, resulting in KNOT Offshore Partners becoming a privately held entity.

KNOT Offshore Partners LP's Ownership Breakdown

Following the acquisition by Swan Bidco AS in March 2023, KNOT Offshore Partners LP is now a privately held company. As such, the ownership structure has changed significantly from when it was a publicly traded entity. The ownership breakdown is as follows:

KNOT Offshore Partners LP's Leadership

Since KNOT Offshore Partners LP is now a wholly-owned subsidiary of Swan Bidco AS, its leadership structure is integrated within the broader KNOT ASA organization. The key aspects of the leadership are:

• CEO and Executive Management: The executive management team of KNOT ASA now oversees the operations and strategic direction of KNOT Offshore Partners LP. Specific individuals may vary, but the leadership is aligned with the goals and strategies of KNOT ASA.
• Board of Directors: The Board of Directors of KNOT ASA provides governance and oversight for all its subsidiaries, including KNOT Offshore Partners LP.

For more insights into the company's mission, vision, and core values, you can check this link: Mission Statement, Vision, & Core Values of KNOT Offshore Partners LP (KNOP).

KNOT Offshore Partners LP (KNOP) Mission and Values

While KNOT Offshore Partners LP has been acquired and is no longer operating independently, understanding its historical mission and values provides insight into its operational philosophy and strategic focus. The company focused on owning, operating, and acquiring shuttle tankers under long-term charters.

KNOT Offshore Partners LP's Core Purpose

Official mission statement

While a specific, formally published mission statement is not readily available in recent filings or news, KNOT Offshore Partners LP's core purpose can be inferred from its operations and objectives:

• To provide stable and growing distributions to its unitholders through the ownership and operation of modern shuttle tankers under long-term, fixed-rate charters.
• To maintain a high standard of operational excellence and safety in the demanding environment of offshore oil transportation.
• To build and sustain strong relationships with major oil companies through reliable and efficient service.

Vision statement

Similarly, a specific vision statement isn't formally documented, but the vision can be understood as:

• To be a leading provider of shuttle tanker services in the North Sea and Brazil, recognized for safety, reliability, and operational expertise.
• To expand its fleet through strategic acquisitions and maintain a modern, high-quality asset base.
• To deliver consistent and predictable cash flows to investors through long-term contracts and efficient operations.

Company slogan/tagline

There is no publicly available information regarding a specific company slogan or tagline for KNOT Offshore Partners LP. For more in-depth information about KNOT Offshore Partners LP and its investors, check out this link: Exploring KNOT Offshore Partners LP (KNOP) Investor Profile: Who’s Buying and Why?

KNOT Offshore Partners LP (KNOP) How It Works

KNOT Offshore Partners LP specializes in owning, operating, and acquiring shuttle tankers under long-term charters, primarily serving the offshore oil and gas industry.

KNOT Offshore Partners LP's Product/Service Portfolio

KNOT Offshore Partners LP's Operational Framework

KNOT Offshore Partners LP operates through a straightforward business model centered on providing essential transportation services to the offshore oil and gas sector. The company focuses on maintaining a modern fleet of shuttle tankers and securing long-term charters to ensure stable revenue.

• Vessel Operation: Manages a fleet of specialized shuttle tankers equipped with advanced technology for safe and efficient offshore oil transportation.
• Charter Agreements: Enters into long-term charter agreements, typically ranging from 5 to 10 years, with major oil and gas companies. These charters provide a predictable revenue stream and high utilization rates for the vessels.
• Financial Management: Employs a strategy of distributing available cash to unitholders after covering operating expenses, debt service, and reserves for maintenance and growth.

KNOT Offshore Partners LP's Strategic Advantages

KNOT Offshore Partners LP possesses several strategic advantages that enable it to maintain a competitive edge in the shuttle tanker market.

• Specialized Fleet: Operates a modern fleet of purpose-built shuttle tankers designed for the harsh environments of the North Sea and Brazil, offering a critical service that few companies can match.
• Long-Term Charters: Secures long-term contracts with creditworthy counterparties, ensuring stable and predictable cash flows.
• Strong Reputation: Benefits from a strong reputation for operational excellence and safety, making it a preferred partner for major oil companies.

To gain more insights into the company's financial performance, check out this analysis: Breaking Down KNOT Offshore Partners LP (KNOP) Financial Health: Key Insights for Investors

KNOT Offshore Partners LP (KNOP) How It Makes Money

The company primarily generates revenue by operating shuttle tankers under long-term charters in the North Sea and Brazil. These tankers are specialized vessels designed to transport crude oil from offshore oil fields to onshore terminals.

Revenue Breakdown

Business Economics

The company's business economics are fundamentally driven by the following factors:

• Long-Term Charters: Securing long-term charters (typically 5-10 years) provides stable and predictable revenue streams.
• High Utilization Rates: Maximizing vessel utilization is critical for profitability. Operational efficiency and minimizing downtime are key.
• Operational Costs: Managing operating expenses, including crewing, maintenance, insurance, and dry-docking, is essential.
• Financing Costs: Given the capital-intensive nature of the business, managing debt and interest expenses is crucial.
• Vessel Supply and Demand: The balance of supply and demand for shuttle tankers in specific regions (North Sea, Brazil) impacts charter rates and renewal terms.

The company operates in a niche market with high barriers to entry due to the specialized nature of shuttle tankers and stringent regulatory requirements. Strong relationships with major oil companies are also vital for securing and renewing charters. To understand more about the guiding principles, check out: Mission Statement, Vision, & Core Values of KNOT Offshore Partners LP (KNOP).

Financial Performance

Analyzing the company's financial performance involves examining key metrics such as:

• Revenue: Total revenue generated from time charters and other services.
• Operating Income: Profitability from core operations, reflecting the efficiency of vessel operations and cost management.
• Net Income: Overall profitability after accounting for all expenses, including interest and taxes.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of operating cash flow, often used to assess the company's ability to service debt.
• Cash Flow from Operations: The cash generated from the company's business activities.
• Fleet Utilization: Percentage of time vessels are operating under charter. High utilization directly correlates with higher revenue.
• Backlog: The total value of future revenue from existing charters, providing visibility into future earnings.

These metrics provide insights into the company's profitability, cash flow generation, and overall financial health. Investors also monitor factors like charter renewal rates and the company's ability to secure new contracts to assess its long-term growth potential.

KNOT Offshore Partners LP (KNOP) Market Position & Future Outlook

As of April 2025, the company navigates a specialized segment of the offshore energy sector, providing shuttle tanker services under long-term charters. The future outlook hinges on the stability and growth of offshore oil production, particularly in harsh weather environments.

Competitive Landscape

The competitive landscape for shuttle tanker services is relatively concentrated, with a few key players dominating the market. While specific market share data as of April 2025 is not available, a general overview can be provided based on industry knowledge and historical performance.

Opportunities & Challenges

The company faces both opportunities and risks that could significantly impact its performance.

Industry Position

The company holds a significant position in the shuttle tanker market, particularly known for its expertise in operating in harsh environments. Factors influencing its industry standing include:

• Specialized Fleet: The company's fleet is specifically designed for shuttle tanker operations, providing a competitive edge in terms of efficiency and reliability.
• Long-Term Charters: The company's strategy of securing long-term charters provides stable and predictable cash flows, reducing exposure to short-term market fluctuations.
• Operational Expertise: The company has a proven track record of safe and efficient operations, which is critical for maintaining strong relationships with its charterers.

To gain more insight into the core values and strategic vision that drive the company, explore Mission Statement, Vision, & Core Values of KNOT Offshore Partners LP (KNOP).