Enviva Partners, LP (the “Partnership”) reported financial and operating results for the 1Q 2017. For the 1Q, gross margin improved to $18.5 million, an increase of $2.7 million from the corresponding period in 2016, and Enviva Partners, LP generated net income of $2.5 million compared to $5.5 million for the corresponding quarter of 2016.
Adjusted EBITDA improved to $22.9 million in the 1Q 2017, a $6.3 million, or 38.3%, increase compared to the corresponding period in 2016. The increases in gross margin and adjusted EBITDA were driven by increased product sales due to the Sampson Drop-Down and a favorable customer and shipping contract mix.
Adjusted gross margin per metric ton was $43.19 for the 1Q 2017, as compared to $40.42 for the 1Q 2016. Net income decreased primarily due to higher interest expense.
“Enviva delivered solid operating performance in what typically is our softest quarter,” said John Keppler, Chairman and CEO. “Combined with the benefit of our recently acquired Sampson plant and DONG Energy off-take contract, we are right on track, year over year. With the expected 4Q lift from the Wilmington terminal acquisition, we are pleased to increase our 2017 distribution guidance to at least $2.36 per unit.”
Enviva Partners, LP is a publicly traded master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets.
