Enviva Inc. to expect reported financial results with respect to the 2Q 2022 to be similar to reported results for the 1Q 2022, as the company exited its seasonally soft period and is capitalizing on the substantially increased plant availability driven by the reduction of COVID-related absenteeism and improving performance by its logistics providers. Enviva also expects 2Q 2022 sales volumes to increase approximately 20% over 1Q 2022 actuals, as short-term supply chain issues continue to resolve. Although diesel costs remain elevated across the southeastern United States, the Company has mitigated the impact by reducing its procurement radius and thus the freight costs associated with transporting the fiber Enviva sources from the forests to its plant locations.
“Given the operational and supply chain improvements we have achieved thus far in the 2Q 2022, we expect to deliver full-year 2022 annual adjusted EBITDA in line with our previously announced guidance of $230 million to $270 million, and are forecasting approximately $35 million to $40 million in adjusted EBITDA for the 2Q 2022, consistent with the preview we provided during our last earnings call,” said John Keppler, Chairman and CEO. “We continue to expect the second half of 2022 to drive two-thirds of full-year 2022 adjusted EBITDA, as the third and fourth quarters of this year are expected to significantly benefit from both the continued production ramp at our Lucedale, Mississippi plant, and the higher production throughput we traditionally experience in our seasonally stronger back half.”
For full-year 2022, adjusted EBITDA is projected to increase by approximately 10% as compared to 2021 (using the midpoint of the 2022 guidance range), and dividend expectations of $3.62 per share also represent an increase of approximately 10% over 2021.
Looking forward into 2023, Enviva expects pricing strength and increased sales volumes to drive significant growth over 2022. Based on information available today regarding contracted volumes, pricing, and our cost tower, adjusted EBITDA for 2023 is projected to range from $305 million to $335 million, representing approximately a 28% increase over expectations for 2022, based on the midpoints of the guidance ranges. Additionally, AGM/MT is projected to be approximately $50 per MT for 2023, a notable increase from the $47.21 AGM/MT achieved in 2021.
Total capital expenditures for 2022 continue to be estimated in the range of $255 million to $275 million, but given the current strong contracting momentum driven by global decarbonization and energy security needs, the timing of construction of Enviva's next greenfield plant in Bond, Mississippi could be accelerated, which would lead to incremental growth capital expenditures during fiscal 2022.
Enviva is a leading global energy company specializing in sustainable wood bioenergy.
