Enviva Partners’ profit impaired by acquisition costs

30.11.2020 − 

Higher acquisition and integration costs, depreciation, amortisation, and interest payments caused the net profit of Enviva Partners to fall sharply in the third quarter. In connection with acquisition of Georgia Biomass at the beginning of August and the transfer of the 500,000 t works of Enviva Pellets Greenwood Holdings to Enviva Partners, the group recorded acquisition and integration costs of US$4.9 and US$9.3m in additional depreciation in the period under review. The result was impaired all the more by an in increase in interest payments to US$12.0m and significantly lower income-tax refunds than a year earlier at US$1.1m. Due to these effects, Enviva Partners recorded a reduction in net profit from US$8.9m to US$1.4m in the period under review.

During the course of the third quarter, Enviva Partners sold a total of 1.133m t of pellets, almost 40 % more than a year earlier. Revenue generated from pellet sales rose to a comparable extent to US$216.2m. Although the adjusted gross margin per sold tonne of pellets was only slightly lower than last year at US50.13, the volume effect caused the gross result to fall by 3.4 % to US$25.6m. Adjusted for non-recurring items, Enviva Partners recorded EBITDA of US$54.5m for the reporting period, an increase of 38 % against last year.

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