Enviva: Impairment of derivatives depresses margin

09.08.2018 − 

Despite the fire-related failure of the Chesapeake storage and handling terminal in Norfolk/Virginia, Enviva Partners sold around 699,000 tonnes of pellets in the second quarter, around 11.3% more than in the prior-year quarter. The resulting quarterly sales rose by 6.6% to US$129.7m. While gross profit of US$16.3m was at the previous year's level, the average margin per tonne of pellets sold declined by 16.5% to US$37.74.

In addition to further expenses in connection with the reconstruction of the Chesapeake storage and transshipment terminal, which was severely damaged by a fire on February 27 and only came back into operation on June 28 of this year, in the amount of US$ 804,000, the result in the reporting period was mainly burdened by adjustments to the fair value of derivatives in the amount of approximately US$3.5m. Adjusted EBITDA decreased accordingly by just under 10 % to US$21.1m.

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