BETHESDA, Md.--Enviva Inc. (NYSE: EVA) (“Enviva,” “we,” “us,” or “our”) today provided a business update in advance of planned investor meetings that included the reaffirmation of full-year 2022 financial guidance, preliminary expectations for second-quarter 2022 adjusted EBITDA, and the announcement of a new European contract.
Highlights:
- Reaffirming full-year 2022 financial guidance, including net income (loss) of $30 million net loss to $10 million net income, and adjusted EBITDA of $230 million to $270 million. Full-year 2022 adjusted EBITDA is forecasted to increase by approximately 10% as compared to 2021, using the midpoint of the guidance range. Full-year 2022 dividend expectations of $3.62 per share remain unchanged, representing a 10% increase as compared to 2021
- Expecting second-quarter 2022 sales volumes to increase approximately 20% over first-quarter 2022 actuals, as short-term supply chain issues continue to resolve
- Announcing the signing of a 60,000 metric ton per year (“MTPY”), 12-year, take-or-pay off-take contract with an existing customer, a large European utility, for industrial heat generation, with deliveries expected to commence during 2026
- Announcing the start of construction of Enviva’s fully contracted wood pellet production plant in Epes, Alabama; when fully ramped, the plant is expected to generate approximately $65 million in annual adjusted EBITDA, resulting in an expected investment multiple of approximately 5 times; exploring debt financing options for the Epes plant, including tax-exempt bond programs
“Given the operational and supply chain improvements we have achieved thus far in the second quarter of 2022, we expect to deliver full-year 2022 annual adjusted EBITDA in line with our previously announced guidance of $230 million to $270 million, and are forecasting approximately $35 million to $40 million in adjusted EBITDA for the second quarter of 2022, consistent with the preview we provided during our last earnings call,” said John Keppler, Chairman and Chief Executive Officer. “We continue to expect the second half of 2022 to drive two-thirds of full-year 2022 adjusted EBITDA, as the third and fourth quarters of this year are expected to significantly benefit from both the continued production ramp at our Lucedale, Mississippi plant, and the higher production throughput we traditionally experience in our seasonally stronger back half.”
“Continued global commitments to the energy transition combined with the current geopolitical backdrop are creating a highly constructive pricing environment for near-term deliveries and long-term contracts at favorable headline pricing levels not previously seen. Our sales and marketing teams in Europe, Japan, and the United States are making great progress toward executing new long-term agreements and converting previously announced memorandums of understanding to binding take-or-pay off-take contracts. Given the continuing structural shortage in wood pellet supply that remains in our industry, where long-term demand continues to outstrip supply capacity, there has never been a better time to be in this business and we are excited to be positioned for highly accretive, durable growth.”
Source: Enviva
