Enviva provides operational, financial update after Chesapeake Terminal fire
In a letter to investors, John Keppler, chairman and CEO of Enviva, provided an update on the operational and financial implications of the recent fire at the partnership's marine export terminal in the Port of Chesapeake, Virginia. "Thanks to the extraordinary work of the Enviva team onsite at our Chesapeake terminal following the February 27th fire, we currently expect the terminal to return to full operation by June 30, 2018," said Keppler. "Moreover, given the flexibility that our portfolio of multiple plants and ports provides, we have met and expect to continue meeting every customer delivery required this year under our off-take agreements. Importantly, as we believe substantially all the costs of the incident are recoverable, we are reaffirming full-year 2018 per unit distribution guidance of at least $2.53, with continued quarter-over-quarter increases expected throughout the year. The flexibility and risk mitigation provided by our portfolio of plants and ports have enabled us to meet every customer delivery required under our off-take agreements since the incident. Our plants are running and our ports are shipping at rates that we believe position us to meet all of our contractual requirements for the balance of the year, although specific timing of shipments may be affected from one quarter to the next. Turning to the financial impact of the incident, we do not believe the underlying profitability or cost position of our business will be affected once the Chesapeake terminal returns to full operation. The events that took place in Chesapeake are financial and operational risks we identified as part of our industrial risk management process, and we believe substantially all of the costs resulting from the incident are recoverable through our insurance or other contractual rights."