Enviva marks 24th consecutive quarterly distribution increase
August 5, 2021
Enviva Partners has reported its 24th consecutive quarterly distribution increase. It declared a distribution of $0.815 per common unit, a 6.5 per cent increase over the second quarter of 2020 and its 24th consecutive quarterly distribution increase since its IPO.
It reported net income of $2.6 million for the second quarter of 2021, adjusted net income of $9.8 million, and adjusted EBITDA of $48.9 million. Adjusted EBITDA increased by 30.7 per cent over the same period in 202.
Enviva completed the previously announced acquisitions of the fully contracted Lucedale plant and Pascagoula terminal and associated equity financing. It reaffirmed full-year 2021 and 2022 financial guidance, which includes per-unit distributions of at least $3.30 and $3.62, respectively, each before considering the benefit of any additional drop-downs or other acquisitions.
Its sponsor announced the signing of a new 17-year take-or-pay off-take contract to supply a major Japanese trading house with 210,000 metric tons per year (MTPY) of wood pellets. Deliveries under the contract are expected to commence in 2025.
Enviva’s sponsor also announced the signing of a memorandum of understanding (MOU) with a major European utility for the supply of approximately 60,000 MTPY of wood pellets to a facility in the Netherlands for a term of 12 years, starting in early 2024.
“During the second quarter of 2021, Enviva delivered results in line with our expectations for the quarter and laid the foundation for a very strong back half of the year,” John Keppler, chairman and chief executive officer, said. “With the benefit of the commissioning and ramp of our Northampton, Southampton, and Greenwood plant expansions, continued progress on our multi-plant expansions, and the substantial contracted cash flow acquired with the drop-downs of the Lucedale plant and Pascagoula terminal, we were pleased to increase our guidance for 2021, announce guidance for 2022, and complete a sizeable equity raise. We believe Enviva is firmly on track to deliver a strong full-year 2021 and an even more robust 2022.”
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