Knot Offshore (KNOP) Q1 2026 Earnings Transcript

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DATE

Friday, May 29, 2026 astatine 9:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Derek Lowe

• Operator

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Full Conference Call Transcript

We statesman connected Slide 4 with the Q1 fiscal and operational headlines. Revenues were $92 cardinal Operating income was $14.7 million, Net income was $2.6 million. Adjusted EBITDA was $56.5 million. And arsenic of March 31, 2026, we had $140.7 cardinal successful disposable liquidity made up of $92.7 cardinal successful currency and currency equivalents, $48 cardinal successful undrawn capacity. This disposable liquidity was $3.7 cardinal higher than December 31. We operated astatine 97.2% utilization taking into relationship scheduled drydocking. Which amounts to 92% utilization wide pursuing the adust dockings of 2 Knutsen and then-- Following the extremity of the quarter, we declared a currency organisation of $0.05 per communal unit, which was paid successful May nether the 1.1 1000 structure.

And which represented an summation from the erstwhile level. We are pleased to person initiated the process of expanding the organisation aft an extended play of debased payouts during which we restored our charter sum improved our liquidity position, and addressed aggregate refinancings and adust dockings. On Slide 5, we person developments during the quarter. Prospectively from January 1, 2026 we changed the utile beingness estimation of our vessels from 23 years to 20 years reflecting longer word marketplace trends. This volition summation aboriginal depreciation 4th by quarter, that is not a currency item. This measurement besides does not forestall vessels from operating beyond 20 years. On Slide 6, we person commercialized developments.

We exercised our enactment to proceed the clip charter of Hilde Knutsen with Shell done March 2027, and subsequently agreed to caller clip charter with Eni commencing successful Q3 27 for 3 years fixed positive options up to a further 3 years. Total Energy has exercised their enactment to widen the charter of Anna Knutsen for 1 twelvemonth until May 2027. And we agreed a clip charter for Recife Knutsen with Transpetro to commence successful Q3 26 for a fixed play of 2 years. Turning to Slide 7 for a precocious level summary of our operating momentum. In some Brazil and the North Sea, we proceed to spot tightening markets driven by FPSO commencement ups.

Ramp ups, expansions, and caller developments. This summation successful shuttle tanker work volumes crossed some markets has been sustained and capable to tighten the proviso request balance. We person sustained a beardown backlog with $858 cardinal of fixed contracts averaging 2.4 years. And alternatively much if each options are exercised. At 4th end, our fleet of 19 vessels had an mean property of 10.5 years. And we are continuing to repay indebtedness astatine astir $90 cardinal per year, we see prudent with a depreciating plus base. And having addressed anterior refinancing activity, we present look up to a $220 cardinal installation successful September 2026, and the $65 cardinal installation successful October.