Enviva slips slightly into the red in third quarter

A sharp rise of around 64% to US$10.1m in payments for services from associated companies led to a reduction in the operating result of the US pellet manufacturer Enviva Partners L.P. (Enviva) to US$10.5m in the third quarter. In spite of the slightly lower interest payments of US$10.7m, the pre-tax and even the net result slipped slightly into the negative zone at -US$137,000 and -US$71,000, respectively. Taking higher acquisition and integration costs US$7.3m and MSA fee waivers of US$21.1m into account, the group recorded an adjusted net result of US$28.3m. Adjusted EBITDA was improved to US$62.9m.

Enviva sold 1.172m t of pellets in the period under review, 3.4% more than last year. The adjusted gross margin, on the other hand, was 3.5% down at US$48.38/t. Revenue generated from pellet sales rose slightly to US$229.7m. Total sales revenue was given as US$237.4m.
At the presentation of the figures in the latest business report, Enviva made a downward adjustment in its previous forecasts for the year as a whole. On the basis of the nine-month figures, the group is meanwhile reckoning with an adjusted EBITDA in the range of US$225-235m. The forecast for the net result now spans a range of US$4.0-14.0m.

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