KNOT Offshore Partners LP (NYSE: KNOP)

KNOT Offshore Partners LP (KNOP), a company listed on the NYSE under the symbol "KNOP," operates in the offshore shuttle tanker industry. The company's primary business objective is to generate stable cash flows and provide a sustainable quarterly distribution per unit to its unitholders.

KNOT Offshore Partners LP's main business activities involve owning and operating shuttle tankers under long-term charters. The company's fleet consists of 18 shuttle tankers, with a total capacity of approximately 2.5 million deadweight tons (dwt), and is spread across various countries in Europe, South America, and Africa. These vessels are used for the transportation of crude oil from offshore platforms to onshore terminals.

The company generates revenue primarily through the hire of its vessels and services related to the loading, transportation, and discharge of crude oil. KNOP's time charters typically have a fixed daily rate, with options for the customer to extend the charter. Under bareboat charters, the customer is responsible for all vessel operating expenses and voyage expenses.

KNOP is a significant player in the shuttle tanker market, with 27 vessels plus 2 newbuilds on order, making it the largest owner of shuttle tankers. The industry is capital intensive, and operational expertise is critical, creating high barriers to entry. KNOP's competitive advantages include a solid track record, knowledge of the market, and an experienced, well-trained crew.

The company's competitors in the shuttle tanker market include Altera Shuttle Tankers L.L.C. (formerly Teekay Offshore Partners L.P.), American Eagle Tankers (AET), and Petrobras, among others. KNOP's customers include Equinor, Transpetro, Repsol, Shell, TotalEnergies, and Petrorio.

KNOT Offshore Partners LP's brand names and/or trade names of its products and services include KNOT Shuttle Tanker and the KNOT Marine brand.