2024-05-31 15:49:56 ET
Summary
- Last week, leading shuttle tanker operator KNOT Offshore Partners LP reported rather stable first quarter results, with increased revenues somewhat offset by higher operating expenses.
- The company generated $27.9 million in cash from operations and finished the quarter with $50.2 million in cash and cash equivalents and $925.3 million in debt.
- After the end of the quarter, the company secured two new long-term contracts in the North Sea and Brazil, which should lift the backlog quite meaningfully going forward.
- However, the company remains highly levered and continues to face uncertainties in both the North Sea and Brazil markets.
- With no major near-term catalysts in sight, I am reiterating my "Hold" rating on the common units.
Note:
I have covered KNOT Offshore Partners LP ( KNOP ) previously, so investors should view this as an update to my earlier articles on the company. ...
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KNOT Offshore Partners: Slow Progress Continues - Hold