KNOT Offshore Partners (NYSE:KNOP) announced its financial results for the fourth quarter ended December 31, 2025, detailing a period of high operational uptime and strategic refinancing despite a significant non-cash accounting charge.
The Partnership generated total revenues of $96.5 million for the quarter.
While the firm reported a net loss of $6.2 million, the result was heavily impacted by a $20.3 million non-cash impairment charge related to the vessel Bodil Knutsen.
Stripping out the impact of this impairment, the Partnership’s adjusted operating income stood at $28.6 million, with an adjusted net income of $14 million.
Adjusted EBITDA for the period was reported at $59.3 million.
Operationally, the fleet maintained a high standard of performance, achieving 99.5% utilization for scheduled operations.
When accounting for the scheduled drydocking of the Synnøve Knutsen—which concluded in mid-December 2025—overall utilization remained robust at 96.4%.
During this period, the subsidiary owning the Synnøve Knutsen also secured a new $71.1 million senior secured term loan facility with MUFG Bank, successfully replacing its previous debt facility.
KNOT Offshore enters 2026 with a liquidity position of $137 million, including $89 million in cash and cash equivalents.
The Partnership continues its commitment to capital returns, having declared a quarterly cash distribution of $0.026 per common unit for Q4 2025, which was paid to unitholders in early February.
Additionally, the firm concluded a $10 million buyback program in October 2025, through which it repurchased and cancelled 384,739 common units at an average cost of $7.87 per unit.