KNOT Offshore Partners is preparing for an upturn in the shuttle tanker market as it braces itself for a “bumpy” second half.

The Scotland-based, New York-listed shipowner on Wednesday reported a profit of $9.9m for the three months ending 30 June, versus a $10.9m loss for the same period of last year.

KNOT Offshore reported $64m in revenue, down from $70.9m a year earlier.

During the quarter, the company fixed three of its ships on charters for a year or longer, and two on shorter-term deals.

“We have also recently agreed multiple interim charters and extensions to increase our substantial contracted forward revenue, though it remains the case that we expect the shuttle tanker charter market to be bumpy for at least the duration of 2022,” said chief executive Gary Champan, noting that oil companies were still ramping up production after shut-ins due to Covid-19.

“We remain focused on securing further employment as the expected medium-term market tightening draws closer, driven by the limited shuttle tanker orderbook and the offshore production growth plans evidenced by large oil major capital expenditure outlays for new FPSOs in Brazil in particular.”

KNOT Offshore said Brazil is showing increased signs of activity, but it said the North Sea situation was a “cause for concern” with less drilling activity there.

The 156,559-dwt Vigdis Knutsen (built 2017) replaced the 162,258-dwt Windsor Knutsen (built 2006) on charter to PetroChina when it came back from dry dock in June, with PetroChina exercising a one-year extension on its charter.

The Windsor Knutsen is set for a one-year charter beginning in January 2023 with an unnamed counterparty, with a one-year extension. KNOT Offshore is negotiating a one-year charter for the 153,684-dwt Brasil Knutsen (built 2013).

The 111,634-dwt Ingrid Knutsen (built 2013) is set for redelivery at the end of the year from a charter with Eni, but KNOT was able to fix the ship for three years beginning in January 2024 with a further three-year extension.

The 156,559-dwt Tordis Knutsen (built 2016) was fixed to TotalEnergies for three months beginning in September 2022 with an extension available for nine more months.

The 156,559-dwt Lean Knutsen (built 2017) was also fixed to Total Energies for six months with a further six-month extension available.

KNOT Offshore is also currently marketing the 111,997-dwt Hilda Knutsen (built 2013) after Eni decided to return the vessel next month.