Enviva withdraws guidance, sees significantly lower sales price in Q4

Enviva said this morning, “Due to the liquidity factors and comprehensive review outlined above, together with lower commercial activity in the third quarter of 2023 and the first part of the fourth quarter of 2023, the Company is withdrawing previous sales price per MT, net loss, adjusted EBITDA, and total capital expenditures guidance for 2023 and future years. Enviva generally experiences an uptick in biomass consumption in the fourth quarter of each year as winter heating demand coupled with seasonal impacts to the amount of solar and wind energy available to power grids drives higher commercial value and allows the Company to capitalize on increased wood pellet demand and higher spot prices. This dynamic, which was particularly pronounced in the fourth quarter of 2022, has not materialized to date in 2023. The Company is therefore expecting a significantly lower sales price per MT in the fourth quarter of 2023.”