Enviva Partners' (the “Partnership”) net revenue increased by $36.6 million, or 17.9%, for the 1Q 2021 as compared to the 1Q 2020, primarily as a result of a $26.7 million increase in product sales and a $9.9 million increase in other revenue.
Gross margin for the 1Q 2021 decreased by $5 million, or 18.3%, as compared to the 1Q 2020 principally due to an increase of $6.8 million in depreciation and amortization expense associated with the acquisitions in July 2020 and $8 million less in changes in unrealized derivative instruments, which were primarily offset by a 14% increase in product sales volumes.
Adjusted EBITDA for the 1Q 2021 increased by $17.2 million, or 58.8%, as compared to the 1Q 2020, primarily due to higher sales volumes and higher pricing as a result of customer contract mix.
“Given that the 1Q of the year typically is our seasonally soft period, we were very pleased to report a 59% increase in adjusted EBITDA relative to the same period last year,” said John Keppler, Chairman and CEO. “Production and sales from the recently acquired Greenwood and Waycross plants and the performance of our commercial and operating teams, which has continued to ensure high-quality, uninterrupted deliveries to our customers, drove our solid financial results. Building on this foundation, we look forward to the commissioning and production ramps underway at the Northampton and Southampton plant expansions driving further margin increases throughout the year in support of our previously announced guidance.”
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.