Enviva plunges after short report Blue Orca dubs as ‘ESG’s ‘latest farce’ (NYSE: EVA)

Wood pellets in hand

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Update 8:10pm: Add Enviva responses to short reports.

Enviva (NYSE:EVA) -twelfth% in Wednesday’s trading after a negative report from Blue Orca Capital, says they are shorting the stock because “EBITDA is inflated, it will cuts its dividend, and newly discovered data shows … the company is explicitly boycotting its timber procurement. “

Enviva’s (EVAClaiming to be a purely ESG player is “nonsense in every way,” according to Blue Orca, “a product of Europe’s insane climate subsidies that encourage deforestation,” said Blue Orca. of the United States so that European power companies can check a bureaucratic box.”

The company is “a serial fundraiser with dangerous debt,” said Blue Orca.

Enviva (EVA) answered in a Press Release end of Wednesday for a short report.

“The report contains numerous errors, repeats previously unsupported speculations and grossly flawed analyses, and draws false, misleading conclusions,” Enviva said in the statement.

Raymond James analyst Pavel Molchanov said in a note Wednesday that the ecological claims in the short report are “old news” and the financial allegations are “false”.

“Blue Orca predicts dividend cut, we don’t see any reasonable, objective basis for drawing such a conclusion,” said Molchanov, who has a better rating and $80 price target on EVA, write in the note.

Enviva (EVA) The short-term interest rate is 12%.

Enviva (EVA) “faces two important tests coming” – focusing on its cash conversion rate in H2 2022 and its ability to continue to access external funding from the debt market as its bond prices rise. sell-off similar to the panic of 2020 – Daniel Thurecht wrote in a analysis published on Seeking Alpha.

–With Josh Fineman’s report


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