Enviva Partners, LP Announces Chesapeake Terminal’s Return to Full Operation
BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE: EVA) (the “Partnership” or “we”) today
announced that the Partnership’s marine export terminal in the Port of
Chesapeake, Virginia has returned to full operation.
“I want to thank our operations and engineering teams for their
tremendous work safely returning the Chesapeake terminal back to
reliable operations on schedule,” said John Keppler, Chairman and Chief
Executive Officer of Enviva.
With the return to full operation following the previously reported fire
incident, the business continuity costs associated with the incident
have begun to wind down. As previously communicated, the Partnership
believes that substantially all of the costs resulting from the incident
will be recoverable through insurance or other contractual rights. As
was the case for the first quarter of 2018, the financial performance
for the second quarter of 2018 will be impacted by business continuity
costs related to the incident not recovered during the second quarter,
but expected to be recovered later in 2018. The Partnership has
continued to meet every customer delivery required under its off-take
agreements since the Chesapeake incident and, although specific
quarterly timing of shipments have been and likely will be affected by
the incident, it expects to meet all of its contractual requirements for
the full year 2018.
About Enviva Partners, LP
Enviva Partners, LP (NYSE: EVA) is a publicly traded master limited
partnership that aggregates a natural resource, wood fiber, and
processes it into a transportable form, wood pellets. The Partnership
sells a significant majority of its wood pellets through long-term,
take-or-pay agreements with creditworthy customers in the United Kingdom
and Europe. The Partnership owns and operates six plants with a combined
production capacity of nearly three million metric tons of wood pellets
per year in Virginia, North Carolina, Mississippi, and Florida. In
addition, the Partnership exports wood pellets through its owned marine
terminal assets at the Port of Chesapeake, Virginia, and the Port of
Wilmington, North Carolina and from third-party marine terminals in
Mobile, Alabama and Panama City, Florida.
To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, including
those regarding (i) the amounts and timing of the costs the Partnership
has incurred and will incur as a result of the Chesapeake incident, (ii)
the recoverability of such costs, including the expectation that the
Partnership’s claims under its insurance policies and its exercise of
other contractual rights are valid and counterparties will perform or
continue to perform their obligations thereunder, (iii) the continued
effectiveness of the Partnership’s logistics operations to meet customer
deliveries, and (iv) the Partnership’s expectation with respect to its
performance under its customer contracts, may constitute
“forward-looking statements.” The words “believe,” “expect,”
“anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,”
or other similar expressions are intended to identify forward-looking
statements, which are generally not historical in nature. These
forward-looking statements are based on the Partnership’s current
expectations and beliefs concerning future developments and their
potential effect on the Partnership. Although management believes that
these forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting the Partnership
will be those that it anticipates. The forward-looking statements
involve significant risks and uncertainties (some of which are beyond
the Partnership’s control) and assumptions that could cause actual
results to differ materially from the Partnership’s historical
experience and its present expectations or projections. Important
factors that could cause actual results to differ materially from
forward-looking statements include, but are not limited to: (i) the
volume and quality of products that we are able to produce or source and
sell, which could be adversely affected by, among other things,
operating or technical difficulties at our plants or deep-water marine
terminals; (ii) the prices at which we are able to sell our products;
(iii) failure of the Partnership’s customers, vendors, and shipping
partners to pay or perform their contractual obligations to the
Partnership; (iv) the creditworthiness of our contract counterparties;
(v) the amount of low-cost wood fiber that we are able to procure and
process, which could be adversely affected by, among other things,
operating or financial difficulties suffered by our suppliers; (vi)
changes in the price and availability of natural gas, coal, or other
sources of energy; (vii) changes in prevailing economic conditions;
(viii) our inability to complete acquisitions, including acquisitions
from our sponsor, or to realize the anticipated benefits of such
acquisitions; (ix) inclement or hazardous environmental hazards,
including extreme precipitation and flooding; (x) fires, explosions, or
other accidents; (xi) changes in domestic and foreign laws and
regulations (or the interpretation thereof) related to renewable or
low-carbon energy, the forestry products industry, the international
shipping industry, or power generators; (xii) changes in the regulatory
treatment of biomass in core and emerging markets; (xiii) our inability
to acquire or maintain necessary permits or rights for our production,
transportation, or terminaling operations; (xiv) changes in price and
availability of transportation; (xv) changes in foreign currency
exchange or interest rates, and the failure of our hedging arrangements
to effectively reduce our exposure to the risks related thereto; (xvi)
risks related to our indebtedness; (xvii) our failure to maintain
effective quality control systems at our production plants and
deep-water marine terminals, which could lead to the rejection of our
products by our customers; (xviii) changes in the quality specifications
for our products that are required by our customers; (xix) labor
disputes; (xx) the effects of the anticipated exit of the United Kingdom
from the European Union on our and our customers’ businesses; (xxi) our
ability to borrow funds and access capital markets; (xxii) our
mis-estimation of the amounts and timing of the costs the Partnership
has incurred and will incur as result of the Chesapeake incident; and
(xxiii) our ability to recover costs associated with the Chesapeake
incident fully and on a timely basis, including through claims under our
insurance policies and the exercise of our other contractual rights.
For additional information regarding known material factors that could
cause the Partnership’s actual results to differ from projected results,
please read its filings with the Securities and Exchange Commission (the
“SEC”), including the Annual Report on Form 10-K and the Quarterly
Reports on Form 10-Q most recently filed with the SEC. Readers are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date thereof. The Partnership undertakes no
obligation to publicly update or revise any forward-looking statements
after the date they are made, whether as a result of new information,
future events, or otherwise.