The US-based pellet producer Enviva Partners LP marketed 843,000 t of pellets in the first quarter. Compared to the same quarter of the previous year, this represents an increase of 30%.
The proceeds from the pellet sales increased by US $ 156.6 million, according to the quarterly report released by the Group. Including other revenues of $ 1.8 million, total revenue was $ 158.4 million, up 26.4%.
Adjusted EBITDA of $ 21.6 million exceeded the prior-year figure by 22.7%. Gross profit has doubled to $ 9.9 million. After deducting general and administrative expenses of $ 9.8 million, operating income of $ 0.1 million was achieved; In the same quarter of the previous year, the Group still reported a loss of US $ 11.8 million. Including interest expense of $ 9.6 million versus other income of $ 0.6 million, net income was $ -8.9 million; Compared to the previous year, the loss was more than halved.
At the end of the first quarter, $ 9.9 billion of take-off contracts utilized Enviva's production capacity for 10.5 years. Taking into account the Hamlet plant, which is due to be completed by the joint venture partner John Hancock Life Insurance, which is scheduled to go into regular production in June, orders worth US $ 14.4 billion will ensure capacity utilization for 12.2 years.
Recently, Enviva entered into an off take contract with RWE Supply & Trading, which will run for five years from 2020, with a total volume of 1 million tonnes or 200,000 tonnes of pellets per year. In addition, Enviva has announced that it has entered into an off take contract with the Japanese Sumitomo Forestry. Starting in 2022, 440,000 t of pellets / year will be delivered to the new biomass power plant in Fukushima Prefecture over a period of 18 years.
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