BETHESDA, Md.-- Enviva Inc. (NYSE: EVA) (“Enviva,” the “Company,” “we,” “us,” or “our”) today announced financial and operating results and declared a dividend for the second quarter of 2022.
Enviva also announced four contract additions, including the conversion of a previously announced memorandum of understanding (“MOU”) and a letter of intent (“LOI”) to binding contracts, a new German contract, and the upsizing of an existing contract.
- Reported a net loss of $27.3 million for the second quarter of 2022, as compared to $24.9 million for the second quarter of 2021, and reported adjusted EBITDA for the second quarter of 2022 of $39.5 million as compared to $25.7 million for the second quarter of 2021; Enviva declared a dividend of $0.905 per share for the second quarter of 2022, an 11% increase over the distribution for the second quarter of 2021
- Reaffirmed full-year 2022 financial guidance, which includes net income (loss) in the range of a $30 million net loss to $10 million of net income, adjusted EBITDA in the range of $230 million to $270 million, and full-year 2022 dividend of $3.62 per share
- Announced four contract additions, with customers across a range of use cases, with terms and conditions reflecting the current strong pricing environment for wood biomass:
- Conversion of an MOU with an industrial products customer to a take-or-pay off-take contract, with a tenor of 15 years and deliveries starting in 2023; volumes anticipated to ramp to approximately 600,000 metric tons per year (“MTPY”) by 2031
- Conversion of an LOI with a German manufacturer to a take-or-pay off-take contract, with a tenor of 10 years and deliveries starting in the third quarter of 2022, with volumes expected to be approximately 60,000 MTPY
- First take-or-pay off-take contract with a new German customer that delivers wood pellets into the European thermal heating market; contract tenor is 5 years, with deliveries expected to commence by the end of 2022, and then volumes ramping to approximately 150,000 MTPY
- A new tranche of contracted deliveries to a longstanding European Union-based customer which is expected to total 720,000 incremental metric tons (“MT”) through 2027
“For the second quarter of 2022, Enviva delivered results at the top end of our expectations, and I’m pleased to report that many of the short-term challenges we experienced in the first half of the year are proving either transitory or manageable over time,” said John Keppler, Chairman and Chief Executive Officer. “While the broader energy markets continue to demonstrate volatility and uncertainty, we are excited to highlight the success we are realizing in near-term, higher priced sales, and converting new customer opportunities into long-term, take-or-pay supply contracts with durable pricing increases, including terms and conditions that should enable us to extend our track record of delivering stable cash flows that grow sustainably well into the future. As a result, we are not only on track to deliver a very strong back half of the year, but, as previously described, we see material margin expansion for the business not only in 2023, but also in 2024 and beyond.”
Keppler continued, “The sheer volume and size of market opportunities with high-quality counterparties across a range of use cases, from renewable energy generation to displacement of fossil fuel-based carbon in hard-to-abate industries, is creating an unprecedented pace of contracting for us, which in turn is underwriting the acceleration of our capacity expansions. We have recently commenced construction of our plant in Epes, Alabama, we are making swift progress on our plans to start construction of a new plant in Bond, Mississippi, and we have recently filed for a permit for a highly accretive expansion of our Ahoskie, North Carolina plant. The growth in our production volume outlook, coupled with the strong pricing environment for biomass, is driving our expectations for an adjusted EBITDA compound annual growth rate of over 25% from 2022 to 2024. This tremendous, fully contracted growth profile, combined with the strong, stable dividend we are paying, makes us well positioned to continue our track record of generating significant returns for our investors, even in an environment of potential economic contraction.”
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