# KNOT Offshore Partners LP > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/KNOT Offshore Partners LP). ## Overview KNOT Offshore Partners LP owns, operates and acquires shuttle tankers that transport crude oil from offshore production fields to export terminals. The partnership’s fleet is deployed primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea, and its common units trade on the New York Stock Exchange. ## Products & services • Ownership and operation of shuttle tankers • Long-term time-charter vessel services • Vessel acquisition and fleet expansion • Offshore crude oil transport from field to shore • Charter-backed marine transportation capacity - **Shuttle tanker operations** (70%) — Operation of specialized tankers that move crude oil from offshore fields to terminals. - **Time charter contracts** (20%) — Long-term charter hire from vessels contracted to oil and energy customers. - **Vessel acquisition and deployment** (10%) — Purchase or ordering of vessels for placement into charter service. - Ownership and operation of shuttle tankers - Long-term time-charter vessel services - Vessel acquisition and fleet expansion - Offshore crude oil transport from field to shore - Charter-backed marine transportation capacity ## Customers The partnership serves oil and energy companies that produce crude from offshore fields and need dedicated shuttle tanker capacity to move that production to market. Its customers are typically charterers in Brazil and the North Sea that value reliable, long-duration transportation assets tied to field development and production schedules. - **Offshore oil producers** (primary) — Buy shuttle tanker capacity to move crude from offshore fields to terminals and export hubs. - **Integrated energy companies** (primary) — Charter vessels for specific offshore projects and production basins requiring reliable transport. - **Field operators in Brazil** (secondary) — Need long-term shuttle tanker service linked to deepwater production and export logistics. - **North Sea charterers** (secondary) — Use specialized tankers for mature offshore fields and regional crude transport routes. - Oil producers operating offshore fields - Charterers needing dedicated crude export capacity - Customers in Brazil and the North Sea - Energy groups seeking long-term vessel availability - Counterparties that prefer fixed charter visibility ## Geography The business is concentrated in two offshore oil-producing regions: Brazil and the North Sea. These locations matter because vessel demand, charter duration, and operating economics are driven by the production profile of each basin and the logistics of moving crude from offshore platforms to shore. - **Brazil** (50%) — Primary offshore operating region mentioned in company disclosures - **North Sea** (50%) — Regional offshore operating area; country mix is approximate - Primary operating regions are Brazil and the North Sea - Revenue depends on offshore oil production activity - Brazil exposure ties to deepwater field development - North Sea exposure links to mature offshore basins - Geography affects vessel deployment and charter visibility ## Strategy The partnership’s strategy centers on long-term charter visibility, fleet investment, and selective acquisitions that support stable cash flow generation. It also seeks to benefit from its established position in the shuttle tanker market while maintaining a sustainable distribution to unitholders. - **Long-term charter visibility** (short-term) — Long charter terms reduce revenue volatility and support planning for vessel deployment and capital allocation. - **Accretive fleet acquisitions** (medium-term) — Buying vessels that fit the charter profile can expand cash flow without relying only on spot market conditions. - **Sustainable distribution policy** (medium-term) — The partnership structure depends on cash generation that can support regular unitholder payouts. - Prioritize long-term charter coverage - Pursue accretive vessel acquisitions - Invest in fleet capacity tied to oil basins - Maintain a sustainable distribution profile - Use market position to capture improving shuttle demand ## Risks The business depends on offshore oil production levels, charter renewals, vessel availability, and the ability to operate safely and efficiently in regulated marine environments. Exposure is also shaped by capital spending, financing needs, and the partnership’s dependence on charterer credit quality and the timing of vessel deliveries or acquisitions. - **Dependence on offshore oil production activity** [high] — Shuttle tanker demand is tied to the level and longevity of offshore crude output in Brazil and the North Sea. - **Charter concentration and renewal risk** [high] — Long-term cash flows depend on charter contracts being renewed or replaced on acceptable terms. - **Operational and marine safety risk** [high] — Vessel downtime, accidents, or technical failures can interrupt service and increase costs. - **Regulatory and crew availability risk** [medium] — The business requires compliant operations, skilled crews, and adherence to maritime standards. - **Capital and liquidity risk** [medium] — Fleet acquisitions and vessel upkeep require ongoing funding and access to financing. - Charter renewals and long-term contract timing affect cash flow visibility - Offshore oil production trends drive demand for shuttle tankers - Operational downtime or vessel incidents can disrupt earnings - Crew availability, regulation and compliance add operating risk - Capital expenditure and financing needs affect acquisition capacity ## Accounting Revenue recognition is driven by time-charter arrangements, so contract duration, start dates and off-hire periods can influence quarterly comparisons. Vessel depreciation, possible impairment testing, lease and financing arrangements, and estimates around maintenance and dry-docking also matter because they affect reported earnings and asset values. - **Time-charter revenue recognition** — Can create uneven quarterly revenue if vessels enter or leave service mid-period - **Vessel depreciation and impairment** — May materially affect reported earnings and balance sheet values - **Dry-docking and maintenance accruals** — Affects operating expenses and period-to-period comparability - **Tax classification and distribution presentation** — Important for investor after-tax returns and payout interpretation - Time-charter revenue depends on contract timing and vessel availability - Off-hire periods can shift revenue between quarters - Vessel depreciation and impairment affect carrying values - Maintenance and dry-dock estimates influence expense timing - Financing and partnership structure affect tax and distribution presentation --- *Last updated: 2026-09-28T12:04:13.133663+00:00*