Enviva: Chesapeake terminal impacted by Feb. 27 fire

By Enviva Partners LP | March 05, 2018

Enviva Partners LP reports that a fire commenced at its deep-water marine terminal in Chesapeake, Virginia, late on Feb. 27. The fire was quickly controlled due to the efforts of onsite personnel and the Chesapeake terminal’s fire suppression and mitigation processes, with assistance from local fire departments and other first responders.

While the Chesapeake terminal is being returned to safe, full commercial operations, the partnership expects to utilize several storage alternatives to minimize the impact of the incident, including excess capacity at its deep-water marine terminal in Wilmington, North Carolina and other temporary storage facilities. The fire may impact the timing and number of shipments in the first quarter of 2018 and the partnership expects to incur cost and liabilities associated with the event, which may impact the first quarter’s financial results. However, due to the partnership’s portfolio of production plants and export terminals and the fulfilment flexibility in its off-take contracts and shipping schedule, the partnership does not expect the fire to impact the guidance provided in its earnings release on Feb. 22 for full-year 2018 adjusted EBITDA and distributable cash flow, subject to recoveries under insurance policies it maintains to mitigate against certain risks and other contractual rights.