Units of KNOT Offshore Partners (NYSE: KNOP) are plummeting today, down by nearly 40% as of 10:30 a.m. ET. The sharp move lower came after the master limited partnership (MLP) focused on the shuttle tanker market made a significant distribution cut. 

KNOT Offshore Partners declared its fourth-quarter distribution payment. It's paying $0.026 per unit. That's a massive 95% reduction from the company's prior payout of $0.52 per unit each quarter. 

KNOT Offshore Partners had previously warned that it was having trouble finding work for its fleet in the North Sea. While the company made some progress securing additional charters for its fleet, many vessels are still looking for contracts. As a result, CEO Gary Chapman stated in the press release, "[W]e currently lack the forward visibility on earnings that we have historically had." 

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Source Fool.com