Enviva sees FY23 adjusted EBITDA $305M-$335M

Sees FY23 net loss $48M-$18M. Sees FY23 Adjusted EBITDA $305M-$335M, reaffirms previously provided preliminary outlook estimates.The company said, "Similar to prior years, adjusted EBITDA is expected to be weighted towards the second half of the year, with approximately one third earned during the first half of 2023, and two thirds earned in the second half of 2023. Enviva’s quarterly income and cash flow are subject to seasonality and the mix of customer shipments made, which varies from period to period. Our business usually experiences higher seasonality during the first quarter of the year as compared to subsequent quarters, as colder and wetter winter weather modestly increases costs of procurement and production at our plants. We expect this to be the case in 2023. Our 2023 guidance assumes a small number of transactions during first-quarter 2023 could be subject to accounting treatment similar to the Deferred Gross Margin Transactions, which could defer gross margin from first-quarter 2023 to future periods. Dividend per common share for 2023 is forecasted to be the same as 2022, with 90.5c per share expected to be declared quarterly, for an aggregate annual dividend payout of $3.62 per share. Enviva forecasts that total capital expenditures will range from $365M-$415M for 2023, with investments in the following projects: Greenfield site development and construction projects, ranging from $295M-$325M; Accretive capital-light projects, ranging from $50M-$70M; Maintenance capital for existing asset footprint expected to be approximately $20M; Total capital expenditures are scheduled to be back-end weighted for 2023." "Several capacity improvements across our manufacturing facilities, including debottlenecking and process throughput upgrades, were completed during 2022, and we have upcoming capital-light projects, both of which are expected to result in production rates that translate into around 6 million produced tons in 2023. When increased production is combined with our improving supply chain conditions and the constructive contract pricing environment we are in, particularly in Europe, we are projecting substantial cash flow growth for 2023 and beyond," said Thomas Meth, President and CEO. "Going forward, our capital allocation policy is focused on reinvesting retained cash flows into our business, while maintaining ample liquidity, conservative leverage for companies like ours with long-term contracted cash flows, and preserving a stable dividend that has the opportunity to grow over time. We look forward to further discussing in more detail our growth outlook, our efficiency improvements initiatives, and our financing plans and financial targets at our upcoming Investor Day, on April 3, 2023."