Enviva provides update of plant development, business structure

Enviva Partners LP released third quarter financial results on Nov. 3, reporting that construction of its pellet plant in Lucedale, Mississippi, is nearly complete, with commissioning expected to begin in the late fourth quarter of 2021.

Development of the export terminal at the Port of Pascagoula is also progressing, and remains on track to receive, store and load production from the Lucedale plant once that facility is operational, the company added.

Enviva also reported that the expansion project at its Northampton plant in North Carolina is complete. The expansion project at the Southampton plant in Virginia continues its commissioning ramp, the company added. Construction on the expansion project at Enviva’s Greenwood facility in South Carolina is also nearing completion. The company also said it has made significant investments in the multi-plant expansions commencing at the Sampson and Hamlet facilities, both located in North Carolina, with work at the Cottondale plant in Florida scheduled to follow.

Construction on the proposed pellet plant in Epes, Alabama, is expected to begin early next year, with an in-service date scheduled for mid-2023. Enviva said construction of a proposed plant in Bond, Mississippi, is the next facility likely to be developed by the company. Construction on the Bond plant is currently expected to commence once the Epes facility is operational. That schedule could be expedited, however, depending on the schedule and delivery requirements of additional off-take contact opportunities under negotiation and general market conditions, Enviva said.

The company also provided an update of its simplification transaction announced in mid-October. As part of that transaction, Enviva announced the acquisition of its former sponsor, Enviva Holdings LP, and the elimination of incentive distribution rights. The company also announced plans to convert from a master limited partnership to a corporation under the name Enviva Inc. by the end of the year. A unitholder meeting related to that conversion is scheduled for Dec. 17. The conversion is expected to take effect on Dec. 31.

Enviva reported net revenue of $237.4 million for the third quarter, up 5.2 percent when compared to the same period of last year. That growth is attributed to an increase in product sales. Gross margin for the third quarter was $26 million, a decrease of 1.6 percent.

Enviva generated a net loss of $100,000 for the third quarter, compared to a net income of $1.4million for the same period of last year. Adjusted net income was $28.3, up 75.8 percent. Adjusted EBITDA was $62.9 million, up 15.6 percent.