Enviva reports $195.3M in sales on 1M tons of wood pellets in Q4

For the fourth quarter of 2019, U.S. wood pellet producer Enviva reported net income of $0.9 million, adjusted net income of $17.2 million, and adjusted EBITDA of $53.3 million.

“As expected, we closed 2019 strong, achieving our highest-ever quarterly adjusted EBITDA on more than one million metric tons of wood pellets sold, and delivered full-year distributable cash flow at the high end of our guidance range,” said John Keppler, chairman and chief executive officer of Enviva. “With the robust pipeline of production plants and terminals and related off-take contracts held by our sponsor and its joint venture, which we expect to be made available to the Partnership for acquisition, we are well-positioned to double our 2019 adjusted EBITDA in the next few years.”

Report highlights

• For the fourth quarter of 2019, reported net income of $0.9 million, adjusted net income of $17.2 million, and adjusted EBITDA of $53.3 million.
• For the full year of 2019, reported net loss of $2.9 million, adjusted net income of $33.4 million, and adjusted EBITDA of $141.3 million.
• Previously announced a distribution of $0.675 per common unit for the fourth quarter of 2019, the partnership’s 18th consecutive distribution increase since IPO.
• Provided full-year 2020 guidance for net income in a range of $43.2 million to $53.2 million and adjusted EBITDA in a range of $165.0 million to $175.0 million, excluding the benefit of any acquisitions or drop-down transactions.
• Reaffirmed previously provided guidance to distribute between $2.87 and $2.97 per common unit for full-year 2020, before considering the benefit of any acquisitions or drop-down transactions.
• Reported that the Partnership and our sponsor executed two new long-term take-or-pay off-take contracts with Japanese customers totaling 420,000 MTPY commencing in 2023.

Outlook

“The ramp-up of the Hamlet plant and the completion of the Mid-Atlantic Expansions, along with organic growth that includes headline price increases in our long-term off-take contracts and productivity and cost improvements, are expected to significantly increase the cash flow profile of the Partnership for 2020,” said Shai Even, chief financial officer of Enviva.

Read the full report here.