KNOT Offshore Partners reported a net loss of $6.2 million for the fourth quarter ended December 31, 2025, following a $20.3 million non-cash impairment for the vessel Bodil Knutsen. This result compares to a profit of $14 million that would have been recorded if the impairment was excluded, according to the company.
Total revenues for the final three months of the year reached $96.5 million, representing a slight decrease from the $96.9 million recorded in the third quarter. The company attributed a rise in vessel operating expenses to $34.7 million primarily to bunker fuel costs for a vessel undergoing a scheduled drydocking.
The company announced on March 19, that it had terminated discussions regarding a non-binding takeover proposal from Knutsen NYK Offshore Tankers. This unsolicited offer, which was received on October 31, 2025, proposed to acquire all publicly held common units for $10 in cash per unit.
Utilisation for scheduled operations reached 99.5 per cent, though the overall figure was 96.4 per cent when accounting for the drydocking of the Synnøve Knutsen.
KNOT Offshore Partners noted that the Vigdis Knutsen began a bareboat charter with Shell on November 4, 2025, which is set to expire in 2030.
Derek Lowe, Chief Executive Officer and Chief Financial Officer, stated, “We remain focused on further strengthening our fleetwide charter coverage and seizing those periodic opportunities that exist to re-charter vessels in the current tight market environment.” He added that the board of directors is focusing on optimising the value creation strategy and weighing capital allocation alternatives.
A diesel generator failure on the Tordis Knutsen on February 16, 2026, has resulted in the vessel going off-hire for repairs. The company said it is expected to return to service in May 2026.
In Brazil, the deployment of floating production storage and offloading units has led to a significant tightening of the shuttle tanker market. KNOT Offshore Partners reported that oil production levels in the region have exceeded anticipated maximums.
Production growth is anticipated by the partnership to outpace vessel supply growth, allowing the market to absorb upcoming newbuild deliveries. Eight new shuttle tankers are scheduled for delivery to Knutsen NYK between 2026 and 2028.
Available liquidity stood at $137 million on December 31, 2025, comprised of $89 million in cash and $48 million in credit facility capacity. Total interest-bearing obligations reached $960 million at the end of the year.
