Enviva changes leadership, announces review of capital structure

Enviva Inc. released financial and operating results for third-quarter 2023, announced a comprehensive review of its capital structure to improve the company’s financial position, and announced a realignment of leadership, including the appointment of Glenn Nunziata, chief financial officer, as Enviva’s interim chief executive officer as the company focuses on executing a multi-faceted transformation plan.

The company reported a net loss of $85.2 million for third-quarter 2023, as compared to a net loss of $18.3 million for third-quarter 2022; net loss for third-quarter 2023 included $21.2 million of asset impairments, $22.1 million of interest expense on repurchase accounting, and $6.3 million of restructuring costs that were not incurred during the same period last year.

Enviva reported adjusted EBITDA for third-quarter 2023 of $36.6 million as compared to $60.6 million for third-quarter 2022; adjusted EBITDA for third-quarter 2023 is lower than the same period last year primarily due to lower revenue from commercial activities.

The company progressed it operational transformation plan:

• Increased metric tons sold by approximately 14 per cent and 10 per cent during third-quarter 2023 as compared to third-quarter 2022 and second-quarter 2023, respectively
• Reduced delivered at port costs per metric ton (MT) for third-quarter 2023 by $9 per MT to $152, down from $161 for second-quarter 2023.

Enviva realigned leadership positions to strategically focus executive resources and skill sets on highest impact initiatives to address the company’s most important priorities. It has engaged advisors to assist Enviva with a comprehensive review of alternatives to strengthen its capital structure, augment liquidity, address contractual liabilities, and increase long-term profitability.

Read the full third-quarter report here.