Enviva's net revenue for the 1Q 2022 was $233.0 million as compared to $241.6 million and $241.0 million for the 1Q 2021 on a recast and non-recast basis, respectively. During the 1Q 2022, several factors contributed to lower year-over-year net revenue results, including plant level labor-related absenteeism associated with the Omicron variant of COVID-19, which lowered plant availability and reduced produced volumes, and supply chain labor-related and other challenges, which led to curtailed production at its plants when rail cars and trucks were not available to transport finished product to its port terminals.
Adjusted gross margin was $50.7 million for the 1Q 2022, as compared to $45.6 million and $49.1 million for the 1Q 2021, on a recast and non-recast basis, respectively. Adjusted gross margin per metric ton (“AGM/MT”) for the 1Q 2022 was $46.27, as compared to $39.73 and $42.73 per MT for the 1Q 2021 on a recast and non-recast basis, respectively. The year-over-year increase in both adjusted gross margin and AGM/MT was primarily driven by higher pricing due to customer contract mix and annual contract price escalators increasing revenue per MT.
Adjusted EBITDA for the 1Q 2022 was $36.6 million, as compared to $21.7 million and $46.3 million for the 1Q 2021 on a recast and non-recast basis, respectively.
“As I have often said, although we have been insulated from so many of the logistics, supply chain, pandemic, and now geopolitical-related challenges facing the broader global economy, we are not immune. As we previewed during our last earnings call in March, the 1Q 2022 likely was going to be a challenge for us, as our seasonally softest quarter was also impacted by dampened production due to Omicron-related absenteeism at our plants and labor-related and other pressures experienced by our rail and trucking providers,” said John Keppler, Chairman and CEO. “Although the effects were more impactful than we originally anticipated, we believe that the pandemic-related issues are largely behind us and are optimistic that the eorts that our logistics partners are making will soon put their challenges firmly in the rear-view mirror as well.”
Enviva is a leading global energy company specializing in sustainable wood bioenergy.
